GrantThornton U * Financial Statements and . Independent Auditors' Report g Drainage and Wastewater Treatment System in Di An * Town Project U * Under Loan Agreement No. 8621-VN between the Socialist * Republic of Vietnam and the International Bank for Reconstruction g and Development ("IBRD"); and Credit Agreement No. 5817-VN g between the Socialist Republic of Vietnam and the International Development Association ("IDA") 0 For the period from 1 January 2019 to 30 April 2020 (the date of closing accounts) U U I U U I U U U Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN For the period from 1 January 2019 to 30 April 2020 Contents U U Page 8 Part I - Financial Statements 1 Report of the Project Management Unit 2-3 Independent Auditors' Report 4-5 Balance sheet 6 8 Statement of Sources and Uses of funds 7 Statement of Designated accounts 8-9 Statement of withdrawals 10-11 Notes to the financial statements 12-17 Part II - Auditors' Report on compliance 18 Part Ill- Auditors' Report on the Internal Control 21 U U U I U U U U U U U I Drainage and Wastewater Treatment System in Di An Town Project 3 ~Loan Agreement No. 8621 -VN and Credit Agreement No. 5817-VN For the period from 1 January 2019 to 30 April 2020 U U U S 8 a £ Part I a Financial Statements a U U U S U 8 U U U U 8 U a 8 U a 8 U Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN For the period from 1 January 2019 to 30 April 2020 8 * Report of the Project * Management Unit 8 8 The Project Management Unit ("PMU") submits its report together with the audited financial statements of Drainage and Wastewater Treatment System in Di An Town Project ("the Project") for the period from 1 January 2019 to 30 April 2020 (the date of closing accounts) ("the period"). Auditors The Project's financial statements for the period from 1 January 2019 to 30 April 2020 have been audited by Grant Thornton (Vietnam) Limited. U The Project Management Unit The members of the PMU are responsible for overall direction and management of the Project to the date of this report were: Name Position Ms. Nguyen Thi Thu Van Director Mr. Vo Van Long Deputy Director Mr. Lam Minh Ky Deputy Director Ms. Vo Thi Thanh Ha Chief Accountant Statement of the Project Management Unit The Project Management Unit is responsible for preparing Financial Statements for the period from 1 January 2019 to 30 April 2020 which give a true and fair view of: * the financial position of the Project; * the funds received and expenditures incurred for the period; * the activities of the designated accounts for the period from 1 January 2019 to 30 April 2020 and the balance of these accounts as at 30 April 2020; and * the funds withdrawn for the period. In preparing those Financial Statements, the Project Management Unit is required to: S* select suitable accounting policies and then apply them consistently in accordance with Loan Agreement No. 8621-VN between the Socialist Republic of Vietnam and the International Bank for Reconstruction and Development ("IBRD"); and Credit Agreement No. 5817-VN between the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Project's Operations Manual; * make judgements and estimates that are reasonable and prudent; * state whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the financial statements; and * design and implement an effective internal control system for the purpose of properly preparing and presenting the financial statements so as to minimise errors and frauds. 2 a 2 5 B Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN For the period from 1 January 2019 to 30 April 2020 U £ The Project Management Unit is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Project and to ensure that the accounting records comply with the accounting system as described in the Project's Operations Manual. We are also responsible for safeguarding the assets of the Project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Project Management Unit confirms that we have complied with the above requirements in preparing the Financial Statements. Approval of the financial statements We hereby approve the accompanying financial statements on pages 6 to 17 which give a true and fair view of the fund balance of the Drainage and Wastewater Treatment System in Di An Town Project as at 30 April 2020, the movement and balance of the designated accounts for the Loan and Credit funds as at 30 April 2020 and the funds received and disbursed for the period from 1 January 2019 to 30 April 2020, in accordance with the accounting policies as described in Note 2 to the financial statements and in the opinion of the PMU, the loan withdrawals have been adequately reconciled to the statements of experditute prepared by the borrower during the period, and such statements of expenditure were adequate s:upported. On behalf of the Project Management Unit, a Nguyen Thi Thu Van Director Binh Duong, Vietnam 26 June 2020 a3 U a a 8 5 U a 8 U U 3 U 8 U * ~ GrantThornton U Grant Thornton (Vietnam) Limited Independent Auditors' Report Hoa Bih InternationaI Office Building on the financial statements of 106 Hoang Quoc Viet Street Cau Giay District. Hanoi Drainage and Wastewater Treatment System in Di An Town Project Vietnam Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN 1 +84 24 3850 1686 for the period from 1 January 2019 to 30 April 2020 (the date of closing accounts) F +84 24 3850 1688 5 a 8 8 S a No: 17-11-273-3 To: Project Management Unit Drainage and Wastewater Treatment System in Di An Town Project Auditors' opinion We have audited the accompanying balance sheet of the Drainage and Wastewater Treatment System in Di An Town Project ("the Project") as at 30 April 2020, and the statement of sources and uses of funds, statements of designated accounts and statements of withdrawals for the period from 1 January 2019 to 30 April 2020 and the notes thereto (collectively referred to as "Financial Statements") as set out on pages from 6 to 17. In our opinion, in all material respects: - The accompanying financial statements give a true and fair view of the balance sheet as at 30 April 2020 and the funds received and expenditures of the Project for the period from 1 January 2019 to 30 April 2020 in conformity with the accounting policies described in Note 2 of the Notes to the financial statements; - The accompanying statement of designated accounts give a true and fair view of the balance of the designated accounts as at 30 April 2020 and the Project's receipts and disbursements via this designated accounts for the period from 1 January 2019 to 30 April 2020 in conformity with the relevant covenants of the Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN, the Project's Operations Manual and relevant regulations established by the World Bank; and I - Withdrawal Applications were adequately reconciled to the statements of expenditures ("SOEs") prepared by the Project Management Unit for the period from 1 January 2019 to 30 April 2020 and those SOEs were adequately supported by accounting vouchers. a Basis for auditors' opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project in accordance with the ethical requirements that are relevant to our audit of the financial statements in Vietnam, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. U grantthornton.com.vn 4 Responsibility of the Project Management Unit for the financial statements The Project Management are responsible for the preparation and fair presentation of these financial statements in accordance with accounting policies as described in Note 2 to the financial statements 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. Auditors' Responsibility Our objectives are to obtain reasonable assurance about whether the financial statements of the Project 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 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 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; and * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Project Management Unit. We communicate with the Project Management Unit, among other matters, the planned scope and timing of the audit ands iifcant audit findings, including any significant deficiencies in internal control that we identify during our audit. GRANT THORNTON (VIETNAM) LIMITED Nguyen Tuan Nam Le Quang Hoa CPA Vietnam Practising Certificate CPA Vietnam Practising Certificate No: 0808-2018-068-1 No. 2587-2018-068-1 Deputy General Director Auditor Hanoi, Vietnam 26 June 2020 2020 Grant Thornton (Vitnam) Limited All rights reserved Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN Balance sheet g as at 30 April 2020 5 5 Notes 30 April 2020 31 December 2018 VND VND ASSETS Cash 4 14,835,748,704 17,984,776,363 Cash on hand 60,938,823 58,452,062 Cash at bank 10,124,171,313 17,797,012,759 Cash in State treasury 4,650,638,568 129,311,542 U Receivables 9,213,096 80,033,986,785 Prepayments to suppliers 5 9,213,096 80,033,216,527 Other receivables - 770,258 TOTAL ASSETS 14,844,961,800 98,018,763,148 LIABILITIES AND FUND BALANCE Liabilities 8,087,104,412 1,065,707,332,534 Payables to suppliers 6 8,038,539,463 222,325,553,467 Other payables 7 48,564,949 843,381,779,067 Fund balance 6,757,857,388 (967,688,569,386) Fund balance at end of the period/year 6,757,857,388 (967,688,569,386) TOTAL IABILITIES AND FUND BALANCE 14,844,961,800 98,018,763,148 SBinh Duorg, V etnam 26 June 2020' Nguyen Thi Thu Van Vo Thi Thanh Ha Director Chief Accountant The notes set out on pages from 12 to 17 an integral part of these financial statements. 6 U Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN 5 . Statements of Sources and Uses * of funds U for the period from 1 January 2019 to 30 April 2020 For the period from 1 January 2019 For year ended Accumulated to Notes to 30 April 2020 31 December 2018 30 April 2020 VND VND VND SOURCES 1,919,429,175,269 141,055,993,318 2,382,760,933,917 IBRD Fund 8 1,319,714,500,000 - 1,518,252,000,000 IDA Fund 9 444,851,400,000 23,194,800,000 504,350,200,000 Counterpart Fund 10 154,863,275,269 117,861,193,318 360,158,733,917 USES OF FUNDS 11 944,718,419,705 1,170,554,288,590 2,375,825,064,879 Construction works 767,750,942,312 1,139,192,449,446 2,113,838,262,758 Goods and equipment 39,064,100,000 24,491,400,000 64,934,845,000 Consultant services 76,506,619,878 5,784,877,444 128,608,780,402 General administration expenses 2,078,672,974 1,085,561,700 5,196,149,531 Interest expenses 59,318,084,541 - 59,318,084,541 Other expenses - 3,928,942,647 (Deficit)/Surplus of sources over uses of funds 974,710,755,564 (1,029,498,295,272) 6,935,869,038 Foreign exchange differences (264,328,790) 145,756,423 (178,011,650) Fund balance at the beginning of the period/year (967,688,569,386) 61,663,969,463 Fund balance at the end of the ear 6,757,857,388 (967,688,569,386) 6,757,857,388 Bin hDuong, etnam Nquyen Thi Thu Van Vo Thi Thanh Ha Director Chief Accountant T U B 5 ~The notes set out on pages from 12 to 17 an integral part of these financial statements~ 7 U U Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN B U . Statement of Designated account * -IBRD Fund 5 For the period: For the period from 1 January 2019 to 30 April 2020 Account Number: 14001370622145 Depository Bank: Vietnam Maritime Commercial Joint Stock Bank Address: 230 Binh Duong Highway, Phu Hoa Ward, Thu Dau Mot City, Binh Duong Province Loan Agreement: 8621 - VN Currency: USD U For the period from 1 January 2019 to 30 April 2020 USD Part A- Account activity Opening balance as at 1 January 2019 331,097.85 Add: Total amount advanced to Designated Account 56,900,000.00 Less: Total amount withdrawn from Designated Account (56,910,426-36) Bank charges (470.00) Closing balance as at 30 April 2020 320,201.49 Part B- Account reconciliation Amount advanced by the World Bank as at 1 January 2019 2,058,734.39 Add: Advance received from the World Bank (Note 12) 56,900,000.00 Less: Amount submitted documentation for reducing advanced balance 58,634,482.08 Outstanding amount advanced to the Designated Account as at 30 April 2020 324,252.31 Designated Account's balance as at 30 April 2020 (Note 4) 320,201.49 Add: Total amount withdrawn 3,345.82 Bank charges 705.00 autsldjng amount advanced to the Designated Account as at 30 April 2020 324,252.31 Binh Duong, Vietnam Nguyen Thi Thu Van Vo Thi Thanh Ha Director Chief Accountant The notes set out on pages from 12 to 17 an integral part of these financial statements. 8 Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN I . Statement of Designated account -IDA Fund For the period: For the period from 1 January 2019 to 30 April 2020 Account Number: 14001370001179 Depository Bank: Vietnam Maritime Commercial Joint Stock Bank Address: 230 Binh Duong Highway, Phu Hoa Ward, Thu Dau Mot City, Binh Duong Province Credit Agreement: 5817 - VN Currency: USD For the period from 1 January 2019 to 30 April 2020 USD Part A- Account activity Opening balance as at 1 January 2019 14,170.71 Add: Total amount advanced to Designated Account 19,185,000.00 Less: Total amount withdrawn from Designated Account (19,154,149.73) Bank charges (470.00) Closing balance as at 30 April 2020 44,550.98 Part B- Account reconciliation Amount advanced by the World Bank at 1 January 2019 1,051,270.28 Add: Advance received from the World Bank (Note 12) 19,185,000.00 Less: Amount submitted documentation for reducing advanced balance 20,190,779.30 Outstanding amount advanced to the Designated Account as at 30 April 2020 45,490.98 Designated Account's balance as at 30 April 2020 (Note 4) 44,550.98 Add: Total amount withdrawn - Bank charges 940.00 - ding amount advanced to the Designated Account as at 30 April 2020 45,490.98 5 ~ Binh D~uon~g,Vietnamn 26 GJuneO202 Nguyen Thi Thu Van Vo Thi Thanh Ha Director Chief Accountant The notes set out on pages from 12 to 17 an integral part of these financial statements. 9 mass=some.assumes sommousSuemossmas Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN Statement of withdrawals - IBRD Fund Loan Agreement No. 8621 - VN for the period from 1 January 2019 to 30 April 2020 Amount reclaimed and submitted documentation to the World Bank Amount disbursed by IBRD Withdrawals Application Number Date Currency Advances Submitted documentation for reducing advanced balance Date Amount 05-BD 29 January 2019 USD 51,500,000.00 (1,727,401.54) 31 Jan 2019 51,500,000.00 09-BD 13 November 2019 USD (51,516,598.45) - 11-BD 13 March 2020 USD 5,400,000.00 - 26 Mar 2020 5,400,000.00 15-BD 27 April 2020 USD (5,390,482.09) - 56,900,000.00 (58,634,482.08) 56,900,000.00 Bih Quong, Vietnam 26 June 2020 Nguyen Thi Thu Van Vo Thi Thanh Ha Director Chief Accountant The notes set out on pages from 12 to 17 an integral part of these financial statements, 10 WwWWWMWMMWUW WMM MWmm WmWWW =WWNSou Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN Statement of withdrawals - IDA Fund Credit Agreement No. 5817 - VN for the period from 1 January 2019 to 30 April 2020 Amount reclaimed and submitted documentation to the World Bank Amount disbursed by IDA Withdrawals Application Number Date Currency Advances Submitted documentation for reducing advanced balance Date Amount 08-BD 22 July 2019 USD 17,000,000.00 (1,036,629.57) 25 July 2019 17,000,000.00 12-BD 15 April 2020 USD (16,980,991.20) - 14-BD 15 April 2020 USD 2,185,000.00 - 16 April 2020 2,185,000.00 16-BD 29 April 2020 USD (2,166,607.89) - 17-BD 29 April 2020 USD (6,550.64) 19,185,000.00 (20,190,779.30) 19,185,000.00 Binh Duong Vietham 26 June 2020 Nguyen Thi Thu Van Vo Thi Thanh Ha Director Chief Accountant The notes set out on pages from 12 to 17 an integral part of these financial statements. 11 Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN Notes to the financial statements For the period from 1 January 2019 to 30 April 2020 1. The Project's information On 25 July 2016, the Government of the Socialist Republic of Vietnam ("the Borrower") signed Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN with the International Bank for Reconstruction and Development ("IBRD") and the International Development Association ("IDA") with total fund of USD69,000,000 and SDR35,300,000, respectively (in which the amounts allocated to the Project are USD69,000,000 and SDR16,230,000, respectively). Under Re-lending Agreement date 2 December 2016, the Ministry of Finance - the Socialist Republic of Vietnam approved the People's Committee of Binh Duong Province to use Loan Agreement No. 8621-VN to implement the Drainage and Wastewater Treatment System in Di An Town Project ("the Project") with the counterpart fund from budget of Binh Duong Province with amount of USD23,022,000. Previously, the People's Committee of Binh Duong Province approved the South Thu Dau Mot Water Supply Project Management under Binh Duong Water - Environment Company One Member Limited Company (currently as Binh Duong Water - Environment Joint Stock Company) to manage and implement the Project in accordance with the Decision No. 584/QD-UBND dated 15 March 2016 and Official Letter No. 2141/UBND-KTN dated 28 June 2016. In accordance with the Decision No. 340/QD- UBND dated 13 February 2019, the South Thu Dau Mot Water Supply Project Management was integrated into Sewerage Project Management Unit of Binh Duong Province. The objectives of the Project are: (i) Improve drainage system for Di An Town center to eliminate flooding as well as contribute to synchronous urban construction and development and avoid overlapping investments; (ii) Collect wastewater as soon as possible from residential area to flow into treatment plant. Quality of wastewater of Vietnam and contribute to thoroughly solve the problem to keep urban environment clean on sustainable basis; (iii) Propose technical, economic and financial solution to get a proper investment phase for assurance of its feasibility and can use financing source efficiency and effectively; (iv) Protect the environment, typically water environment in Dong Nai River, a main source of raw water for Ho Chi Minh City, Binh Duong Province and Dong Nai Province; and (v) Create favourable conditions for a comprehensive development of the town in future, combine with urban technical infrastructure to meet general target of Binh Duong Province and of country as a whole. The Project office is located at No 11, Ngo Van Tri Road, Phu Loi Ward, Thu Dau Mot City, Binh Duong Province, Vietnam. The Project commenced its execution since 28 December 2016 and completed on 31 December 2019. The disbursement deadline was 4 months after the finished date of Credit agreement. Fund structure of the Project are as follows: * IBRD Fund USD69,000,000; * IDA Fund SDR16,230,000; and Counterpart Fund USD23,022,000. 12 Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN 2. Principals accounting policies 2.1 Basis of accounting The financial statements, expressed in Vietnamese Dong ("VND"), except for the statements of designated accounts and statement of withdrawals which are expressed in United States Dollar ("USD"). These financial statements are prepared in accordance with requirements of the World Bank and Circular 195/2012fTT-BTC dated 15 November 2012 issued by the Ministry of Finance of Vietnam and International Public Sector Accounting Standards. The Financial Statements are prepared in conformity with a modified cash basis of accounting rather than generally accepted accounting principles. The significant policies adopted in the preparation of the financial statement are set out below. 2.2 Foreign currency transaction Transactions arising in foreign currencies are translated into Vietnamese Dong ("VND") at the exchange rates ruling on the transaction date. Foreign exchange differences are not cash flows. However, the effect of exchange rate changes on cash is reported separately in the statement of sources and uses of funds in order to reconcile fund balances at the beginning and the end of the year. 2.3 Bank interest payables In accordance with Circular 11 1/2016fTT-BTC dated 30 June 2016 issued by the Ministry of Finance, the Project can use bank interest earned from the Project's fund to pay for bank charges. The remaining interest earned after deduction of bank charges is payable to the Borrower rather than treated as a source of income for the Project. In case the interest is not enough to pay bank charges, the Project Management unit shall have to make a plan for counterpart fund for payment instead of recording it as Project expenditures. 2.4 Recognition of funds and expenditures Project funds and expenditures are recognised on modified cash basis. - IBRD and IDA funds: Funds are recognised when direct payments from the World Bank to suppliers or/and receipts from the World Bank to Designated Accounts. - Counterpart fund: Fund is recognised when direct payments from Treasury to suppliers and/or the Project received funds from the Treasury to the bank accounts and cash on hand of the Project. - Expenditure is recognised when incurred. 2.5 Accounting period The first financial year of the Project is from 28 December 2016 (effective date) to 31 December 2017. Succeeding financial year will begin on 1 January 2018 and ends on 31 December 2018. The last financial year of the Project is from 1 January 2019 to 30 April 2020 (the date of closing accounts). 2.6 Payables Payables are recognised for amount to be paid in the future for goods and services received. 3. Designated Accounts Designated Accounts are the deposit accounts in USD opened at Vietnam Maritime Commercial Joint Stock Bank for the implementation of the Project activities. Payments out of the Designated Accounts are made for expenditures in accordance with the relevant covenants of Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN, the Project's Operations Manual and relevant regulations established by the World Bank. j 13 Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN 4. Cash 30 April 2020 31 December 2018 Original USD Equivalent VND Original USD Equivalent VND Cash on hand - 60,938,823 - 58,452,062 Cash in banks 364,752.47 10,124,171,313 345,268.56 17,797,012,759 - Designated account- IBRD 320,201.49 7,471,901,769 331,097.85 7,671,537,184 - Designated account - IDA 44,550.98 1,039,597,118 14,170.71 328,335,351 1 -Current account - 1,612,672,426 - 9,797,140,224 Cash in State Treasury - 4,650,638,568 - 129,311,542 364,752.47 14,835,748,704 345,268.56 17,984,776,363 U 5. Prepayments to suppliers 30 April 2020 31 December 2018 VND VND Sai Gon SAMCO Automotive Mechanical JSC - Bidding package No. BDAF10 - 8,614,950,000 EXP International Services INC - Bidding package No. BDAF1 1 - 13,626,592,326 Partnership of Vietnam Water and Environment Investment Corporation and New Steel Construction Consultant Investment Co., Ltd - Bidding package No. BDAFO7 10,778,012,062 Partnership of Vietnam Water and Environment Investment Corporation and New - Steel Construction Consultant Investment Co., Ltd - Bidding package No. BDAFO9A 36,370,096,052 Others 9,213,096 10,643,566,087 9,213,096 80,033,216,527 * 6. Payables to suppliers 30 April 2020 31 December 2018 VND VND Payable for Partnership of Vietnam Water and Environment Investment Corporation and New Steel Construction Consultant Investment Co., Ltd - Bidding package No. BDAFO7 - 93,168,415,928 Payable for Partnership of Vietnam Water and Environment Investment Corporation and New Steel Construction Consultant Investment Co., Ltd - Bidding package No. BDAF9A 5,660,242,053 48,415,555,938 Payable for Construction No. 5 JSC - Bidding package No. BDAFO6 - 23,830,268,214 Payable for Construction No. 5 JSC - Bidding package No. BDAFO8 - 23,622,463,904 Dai Phu Thinh Co., Ltd - Bidding package No. BDAF05A 1,117,932,310 - Thuan Phuc Thinh Co., Ltd - Bidding package No. BDAFO3 1,107,080,100 855,208,200 Others 153,285,000 32,433,641,283 8,038,539,463 222,325,553,467 7. Other payables 30 April 2020 31 December 2018 VND VND 8 Binh Duong People's Committee (*) - 843,003,330,000 Others 48,564,949 378,449,067 48,564,949 843,381,779,067 * 14 Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN (*) It represents the advances from Binh Duong People's Committee in accordance with Document 2882/UBND-KTN dated 26 June 2018 and Document 6005/UBND-KTN dated 11 December 2018. S 8. IBRD Fund 8 For the period from For year ended Accumulated to 1 January 2019 to 30 April 2020 31 December 2018 30 April 2020 USD Equivalent to VND USD Equivalent to VND USD Equivalent to VND U Advance to designated account 56,900,000 1,319,714,500,000 - - 65,650,000 1,518,252,000,000 9. IDA Fund 1 For the period from For year ended Accumulated to 1 January 2019 to 30 April 2020 31 December 2018 30 April 2020 USD Equivalent to VND USD Equivalent to VND USD Equivalent to VND Advance to designated account 19,185,000 444,851,400,000 1,020,000 23,194,800,000 21,805,000 504,350,200,000 U 10. Counterpart fund For the period from For year ended Accumulated to 1 January 2019 to 30 April 2020 31 December 2018 30 April 2020 VND VND VND Counterpart fund from Budget of Binh Duong Province 154,863,275,269 117,861,193,318 360,158,733,917 1 U U U U 8 U U U * 15 8 sommoWsenow essume masse mOmINe=m on Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN 11. Expenditures by activities and by sources of fund For the period from 1 January 2019 to 30 April 2020 For year ended 31 December 2018 Accumulated to 30 April 2020 IBRD and IDA Counterpart IBRD and IDA Counterpart IBRD and IDA Counterpart funds fund Total funds fund Total funds fund Total VND VND VND VND VND VND VND VND VND Construction works 686,996,014,081 80,754,928,231 767,750,942,312 1,025,273,204,501 113,919,244,945 1,139,192,449,446 1,883,080,855,782 230,757,406,976 2,113,838,262,758 Goods and equipment 35,157,690,000 3,906,410,000 39,064,100,000 22,042,260,000 2,449,140,000 24,491,400,000 58,441,360,500 6,493,484,500 64,934,845,000 Consultant services 73,956,046,578 2,550,573,300 76,506,619,878 698,710,488 5,086,166,956 5,784,877,444 74,501,472,066 53,954,023,336 128,608,780,402 General administration expenses - 2,078,672,974 2,078,672,974 - 1,085,561,700 1,085,561,700 - 5,196,149,531 5,196,149,531 Interest expenses - 59,318,084,541 59,318,084,541 - - - - 59,318,084,541 59,318,084,541 Other expenses - - - - - - 3,928,942,647 3,928,942,647 796,109,750,659 148,608,669,046 944,718,419,705 1,048,014,174,989 122,540,113,601 1,170,554,288,590 2,016,023,688,348 359,648,091,531 2,375,825,064,879 12. Reconciliation of the amount returned to the World Bank to close the Designated Account IBRD Fund IDA Fund The advance balance, 1 January 2019 2,058,734.39 1,051,270.28 The amount advanced during the period 56,900,000.00 19,185,000.00 The amount submitted documentation for reducing advanced balance (58,634,482.08) (20,190,779.30) The amount must be returned to the World Bank (i) 324,252.31 45,490.98 (i) The remaining amounts were returned to the World Bank on 20 May 2020 and therefore were not reflected in the financial statements for the period from 1 January 2019 to 30 April 2020. 16 Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN U * 13. Approval for issuance of the financial statements The inancial statements were approved by the Project Management Unit and authorised for issue. Binh Duong, Vietnam 26 June 2020 * Nguyen Thi Thu Van Vo Thi Thanh Ha Director Chief Accountant 1 U 8 £ a £ 8 U 8 £ 8 U 8 8 a S 8 3 17 U U ~ Drainage and WVastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 581 7-VN U U U U U U * Part II * Auditors' Report on compliance U U U U U W I I U I1 U GrantThornton U Grant Thornton (Vietnam) Limited Independent Auditors' Report tio Binh International OiceBlding n . 106 Hoanq Quoc Viet Street on compliance Cau Giay District. Hanoi Drainage and Wastewater Treatment System in Di An Town Project Vienam Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN T +84 24 3850 1686 for the period from 1 January 2019 to 30 April 2020 (the date of closing accounts) F*8424 3850 188 5 I U U U I * To: The Project Management Unit Drainage and Wastewater Treatment System in Di An Town Project 5 We have audited the balance sheet as at 30 April 2020 of Drainage and Wastewater Treatment System in Di An Town Project under Loan Agreement No. 8621-VN between the Socialist Republic of Vietnam and the International Bank for Reconstruction and Development ("IBRD"); and Credit Agreement No. 5817-VN between the Socialist Republic of Vietnam and the International Development Association ("IDA") ("the Project"), the statement of sources and uses of funds, statements of designated accounts and the statements of withdrawals for the period from 1 January 2019 to 30 April 2020 and the notes thereto (collectively referred to as "Financial Statements"), and have issued our report thereon dated 26 June 2020. As part of the audit of Financial Statements per the Terms of reference, we have examined the compliance with Applicable Laws, Regulations and the Procurement Procedures and other Provisions of the Loan Agreement and Credit Agreement and other Guidances from the World Bank. * The Project Management Unit's responsibility The Project Management Unit is responsible for complying with Applicable Laws, Regulations and the Procurement Procedures and other Provisions of the Loan Agreement, Credit Agreement and other Guidances from the World Bank. Auditors' responsibility Our responsibility is to express an opinion on the Project's compliance with the requirements, based on our procedures. We conducted our engagement in accordance with the International Standard on Assurance Engagement 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information", issued by the International Auditing and Assurance Standards Board. This standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project has complied with the requirements. An assurance engagement to report on the compliance with regulatory and contractual requirements at a project involves performing procedures to obtain evidence about whether the Project's activities are free of material non-compliance with the requirements. The procedures selected depend on the auditor's judgment, including the assessment of risks that the Project does not comply with the requirements and whether such non-compliance could have a direct and material effect on the Project's Financial Statements. Our procedures included testing the compliance with the requirements that we consider necessary to provide reasonable assurance that the requirements are complied by the Project. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. S grantthornton.com.vn 19 Auditors' opinion In our opinion, the Project was, in all material respects, in compliance with Applicable Laws, Regulations and the Procurement Procedures and other Provisions of the Loan Agreement No. 8621-VN, Credit Agreement No. 5817-VN and other Guidances from the World Bank that could have a direct and material financial effect on the Project's financial statements for the period from 1 January 2019 to 30 April 2020. I GRANT THORNTON (VIETNAM) LIMITED Nguyen Tuan Nam Le Quang Hoa CPA Vietnam Practising Certificate CPA Vietnam Practising Certificate No: 0808-2018-068-1 No. 2587-2018-068-1 Deputy General Director Auditor Hanoi, Vietnam 26 June 2020 U s U U 3 5 2020 Granl Thornton lVieAr1m) ulmited All nights reserved 20 U Drainage and Wastewater Treatment System in Di An Town Project Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN U U U 8 . Part Ill * Auditors' Report on the Internal 5 Control a U U U2 * ~ GrantThornton Grant Thornton (Vietnam) Limited 18th Floor Independent Auditors' Report .aBr.hI .nti.l.fcBO. 106 Hoang Quoc Viet Street on the Internal Control over financial reporting Cau Gtav District Hanoi Drainage and Wastewater Treatment System in Di An Town Project Vietnam Loan Agreement No. 8621-VN and Credit Agreement No. 5817-VN T +84 24 3850 1686 F +84 24 3850 1688 for the period from 1 January 2019 to 30 April 2020 (the date of closing accounts) W U U U U U * To: The Project Management Unit Drainage and Wastewater Treatment System in Di An Town Project 5 We have audited the balance sheet as at 30 April 2020 of Drainage and Wastewater Treatment System in Di An Town Project under Loan Agreement No. 8621-VN between the Socialist Republic of Vietnam and the International Bank for Reconstruction and Development ("IBRD"); and Credit Agreement No. 5817-VN between the Socialist Republic of Vietnam and the International Development Association ("IDA") ("the Project"), the statement of sources and uses of funds, statements of designated accounts and the statements of withdrawals for the period from 1 January 2019 to 30 April 2020 and the notes thereto (collectively referred to as "Financial Statements"), and have issued our report thereon dated 26 June 2020. As part of the audit of financial statements per the Terms of reference, we have examined the design and operation of internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as over financial reporting. 5 The Project Management Unit's responsibility The Project Management is responsible for designing and maintaining effective internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as over financial reporting for the purpose of properly preparing and presenting the financial statements so as to minimise errors and frauds; and take responsibility for its assertions as to the effectiveness of such internal control. Auditors' responsibility Our responsibility is to express an opinion on the Project's Financial Statements and on the design and operation of controls over financial reporting, based on our procedures. We conducted our engagement in accordance with the International Standards on Assurance Engagement 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information", issued by the International Auditing and Assurance Standards Board. That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project's Financial Statements are fairly presented and the controls are suitably designed and operating effectively. An assurance engagement to report on the description, design and operating effectiveness of controls at a project involves performing procedures to obtain evidence about the disclosures in the project's description of its system and design and operating effectiveness of controls. The procedures selected depend on the auditor's judgment, including the assessment of risks that the Project's Financial Statements is not fairly presented, and that controls are not suitably designed or operating effectively. Our procedures included testing the operating effectiveness of those controls that we consider necessary to provide reasonable assurance that the control objectives were achieved. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. grantthornton.com.v 22 U Auditors' opinion In our opinion, in all material respects, the Project's internal controls over compliance with requirements that could have a direct and material financial effect on the financial statements as well as over financial reporting were suitably designed throughout the period from 1 January 2019 to 30 April 2020 and the controls tested, which were those necessary to provide reasonable assurance that the control objectives were achieved, operated effectively throughout the period from 1 January 2019 to 30 April 2020. GRANT THORNTON (VIETNAM) LIMITED Nguyern Tuan Nam Le Quang Hoa CPA Vietnam Practising Certificate CPA Vietnam Practising Certificate No: 0808-2018-068-1 No. 2587-2018-068-1 Deputy General Director Auditor Hanoi, Vietnam 26 June 2020 2020 Gr,ant T horntonl (Vietnam) Limited All rnghts reserved 23 I E i I M I E M M I M I I E N I I E I E N I E I E