"Improving Social Accountability in the Water Sector through the Development of Quality Standards and Citizen Participation in Monitoring Project" Grant No. TF 015840 The project financial statements for the year ended December 31, 2017, for the period from January 1, 2018 to May 31, 2018 and the grace period from June 1, 2018 to September 30, 2018 and independent auditors' report "IMPROVING SOCIAL ACCOUNTABILITY IN THE WATER SECTOR THROUGH THE DEVELOPMENT OF QUALITY STANDARDS AND CITIZEN PARTICIPATION IN MONITORING PROJECT" Grant No. TF 015840 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, 2017, FOR THE PERIOD FROM JANUARY 1, 2018 TO MAY 31, 2018 AND THE GRACE PERIOD FROM JUNE 1, 2018 TO SEPTEMBER 30, 2018 2 INDEPENDENT AUDITORS' REPORT 3-5 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017, FOR THE PERIOD FROM JANUARY 1, 2018 TO MAY 31, 2018 AND THE GRACE PERIOD FROM JUNE 1, 2018 TO SEPTEMBER 30, 2018: Summary of funds received and expenditures paid 6 Summary of expenditures paid by project components 7 Notes to the project financial statements 8-15 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017, FOR THE PERIOD FROM JANUARY 1, 2018 TO MAY 31, 2018 AND THE GRACE PERIOD FROM JUNE 1, 2018 TO SEPTEMBER 30, 2018 The following statement, which should be read in conjunction with the independent auditors' report is made with a view to distinguish the respective responsibilities of management and those of the independent auditors in relation to the project financial statements of the Project "Improving Social Accountability in the Water Sector through the Development of Quality Standards and Citizen Participation in Monitoring Project" Grant No. TF 015840 (the "Project"). Management is responsible for the preparation of the project financial statements that 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, 2017, for the period from January 1, 2018 to May 31, 2018 and the grace period from June 1, 2018 to September 30, 2018 in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public 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"). In preparing the project financial statements, management is responsible for: * selecting suitable accounting policies and applying them consistently; * making judgments and estimates that are reasonable and prudent; * stating whether IPSAS and WB Guidelines have been followed, subject to any material departures disclosed and explained in the project financial statements; and * preparing the project financial statements on a going concern basis, unless it is inappropriate to presume that the Project will continue its activity for the foreseeable future. Management is also responsible for: * designing, implementing and maintaining effective and sound system of internal control and for revealing risks in system of internal control; * maintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Project, and which enable them to ensure that the project financial statements of the Project comply with IPSAS and WB Guidelines; * compliance with laws and regulations of the Republic of Tajikistan, accounting system of the Project and the requirements of the World Bank; * taking such steps as are reasonably available to them to safeguard the assets of the Project; and * detecting and preventing fraud and other irregularities. The project financial statements for the year ended December 31, 2017, for the period from January 1, 2018 to May 31, 2018 and the grace period from June 1, 2018 to September 30, 2018 were approved and authorized for issue on October 26, 2018 by the management of the Project. On behalf of the Management: Shovkat Alizade Dilafruz dafurova Director Finance and system coordinator October 26, 2018 October 26, 2018 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan BAKER TILLY ICS Baker Tilly Klitou and Partners SRL 65 Stefan cel Mare siSfant Blvd 5th Floor, office 507 MD-200l, Chisinau- Moldova Tel: +373 22 233003 Fax: +373 22 234044 Email: info@bakertilly.md Website: www.bakertilly.md INDEPENDENT AUDITORS' REPORT To the management of the Project "Improving Social Accountability in the Water Sector through the Development of Quality Standards and Citizen Participation in Monitoring Project" under the Affiliate of OXFAM GB Association in 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 "Improving Social Accountability in the Water Sector through the Development of Quality Standards and Citizen Participation in Monitoring 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, 2017, for the period from January 1, 2018 to May 31, 2018 and the grace period from June 1, 2018 to September 30, 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, 2017, for the period from January 1, 2018 to May 31, 2018 and the grace period from June 1, 2018 to September 30, 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 (the "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 and Grant agreement requirements. Other matter Offices: Moldova Cyprus Romania Greece Bulgaria Chisinau T: +373 22 233003 Nicosia T: +357 22458500 Bucharest T: +40 21 3156100 Athens, Thessaloniki Sofia T: +359 2 9580980 Limassol T: +357 25 591515 T: +30 215 500 6060 Larnaca T: +357 24 653299 BAKER TILLY [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. Responsibilities of management and those charged with governance for the project financial statements [6] Management is responsible for the preparation and fair presentation of the project financial statements in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public 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"), and for such internal control as management determines is necessary to enable the preparation of the project financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibilities for the audit of the project financial statements [7] Our objectives are to obtain reasonable assurance about whether the project 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 the project financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the project 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, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the project financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the project financial statements, including the disclosures, and whether the project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. [8] We 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. BAKER TILLY [9] We also 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. Baker Tilly Klitou and Partners SRL Chisinau, Republic of Moldova I October 26, 2018 co "IMPROVING SOCIAL ACCOUNTABILITY IN THE WATER SECTOR THROUGH THE DEVELOPMENT OF QUALITY STANDARDS AND CITIZEN PARTICIPATION IN MONITORING PROJECT" GRANT NO. TF 015840 SUMMARY OF FUNDS RECEIVED AND EXPENDITURES PAID FOR THE YEAR ENDED DECEMBER 31, 2017, FOR THE PERIOD FROM JANUARY 1, 2018 TO MAY 31, 2018 AND THE GRACE PERIOD FROM JUNE 1, 2018 TO SEPTEMBER 30, 2018 (in US dollars) Notes The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018 to 2018 to 2017 2016 September 30, May 31, 2018 2018 Opening balance 4 5,785 58.743 116,675 68,925 - Funds received Grant No. TF 015840 5 - 83,654 170,000 298,846 850,000 Total funds received - 83,654 170,000 298,846 850,000 Project expenses Consultancy services 6 - 31,951 19,417 646 103,673 Trainings, seminars and workshops 6 - 4,214 55,298 37,516 127,539 Goods 6 - 159 3,970 13,060 21,636 Incremental operating costs 6 - 48,496 106,977 164,991 422,910 Others (campaigns, media activities, events) 6 - 51,915 42,163 34,863 168,425 Total project expenses - 136,735 227,825 251,076 844,183 Net (gain)/loss on foreign exchange - (123) 107 20 32 Closing balance 4 5,785 5,785 58,743 116,675 5,785 On behalf of the Management: Shovkat Alizadel Dilafruz Gafova Director Finance and system coordinator October 26, 2018 October 26, 2018 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes on pages 8-15 form an integral part of the project financial statements. The independent auditors' report is on pages 3-5. 6 "IMPROVING SOCIAL ACCOUNTABILITY IN THE WATER SECTOR THROUGH THE DEVELOPMENT OF QUALITY STANDARDS AND CITIZEN PARTICIPATION IN MONITORING PROJECT" GRANT NO. TF 015840 SUMMARY OF EXPENDITURES PAID BY PROJECT COMPONENTS FOR THE YEAR ENDED DECEMBER 31, 2017, FOR THE PERIOD FROM JANUARY 1, 2018 TO MAY 31, 2018 AND THE GRACE PERIOD FROM JUNE 1, 2018 TO SEPTEMBER 30, 2018 (in US dollars) The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018to 2018to 2017 2016 September 30, May 31, 2018 2018 Component 1. "Definition and dissemination of a new and improved set of performance indicators for service provision in water supply and sanitation subsector at national level" - - 20,486 7,385 57,130 Component 2. "Establish the capacity within local CSOs to implement a civil society- based monitoring mechanism focused on consumer rights, developed in target areas and connected to the community, local, district and national levels" - 55,142 48,129 44,120 187,491 Component 3. "Consumers' awareness raising and capacity building of selected operators and other local stakeholders in target areas" - 16,417 39,288 32,075 112,206 Component 4. "Knowledge and learning plan and program coordination" - 65,176 119,922 167,496 487,356 - 136,735 227,825 251,076 844,183 On behalf of the Management: Shovkat Alizade Dilafruz Gafifrova Director Finance and system coordinator October 26, 2018 October 26, 2018 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes on pages 8-15 form an integral part of the project financial statements. The independent auditors' report is on pages 3-5. 7 "IMPROVING SOCIAL ACCOUNTABILITY IN THE WATER SECTOR THROUGH THE DEVELOPMENT OF QUALITY STANDARDS AND CITIZEN PARTICIPATION IN MONITORING PROJECT" GRANT NO. TF 015840 NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017, FOR THE PERIOD FROM JANUARY 1, 2018 TO MAY 31, 2018 AND THE GRACE PERIOD FROM JUNE 1, 2018 TO SEPTEMBER 30, 2018 (in US dollars) 1. GENERAL INFORMATION According to the Agreement between the Affiliate of OXFAM GB Association in the Republic of Tajikistan and the International Bank for Reconstruction and Development and the International Development Association (the "World Bank") signed on April 03, 2014, the World Bank, acting as administrator of grant funds provided by various donors under the Global Partnership for Social Accountability (the "GPSA"), provided a Grant No. TF 015840 in the amount of 850,000 US dollars to the Affiliate of OXFAM GB Association in the Republic of Tajikistan. The Grants were provided for the implementation of the Project "Improving Social Accountability in the Water Sector through the Development of Quality Standards and Citizen Participation in Monitoring Project" (the "Project"). Project purpose The objective of the Project is to increase the engagement of Beneficiaries in monitoring the performance of the water supply and sanitation subsector. The Project comprises the following components: Component 1 - Definition and dissemination at national level of a new set of performance indicators for service provision in water supply and sanitation subsector at national level; Component 2 - Establish the capacity within local CSOs to implement a civil society-based monitoring mechanism focused on consumer rights, developed in target areas and connected to the community, local, district and national levels; Component 3 - Consumers' awareness raising and capacity building of selected operators and other local stakeholders in target areas; Component 4 - Knowledge and learning plan and program coordination. Component 1: Definition and dissemination of new and improved set of performance indicators for service provision in the water supply and sanitation subsector through: (a) the carrying out of an analysis of the existing regulatory framework; (b) the development of a new and an improved set of performance indicators for the subsector at the national level; and (c) the preparation and dissemination of a draft report on such indicators. Component 2: Supporting the establishment of a standard civil society-based monitoring mechanism with local CSOs through: (a) the preparation of the monitoring framework to monitor service performance in the water supply and sanitation subsector; (b) the assessment of the capacity of the CSOs focused on consumer rights; (c) the development and implementation of a capacity building plan, on the basis of the assessment in (b) above, for such CSOs, targeted service providers and local public stakeholders; and (d) the testing of the civil society-based monitoring mechanism. Components 3: Carrying out: (a) communication campaigns and community events to raise awareness of water consumers; and (b) capacity building activities tailored to targeted water service providers in cooperation with local regulators. 8 Components 4: (a) (i) developing a plan to share knowledge and best learning practices including the design of knowledge base and interactive tools for relevant stakeholders; and (ii) developing mechanisms for monitoring and evaluating learning results and knowledge applications; (b) carrying out the management, monitoring and evaluation of Project activities including audits; and (c) coordinating and sharing information with key stakeholders. Project management The Project is implemented by the Affiliate of OXFAM GB Association in the Republic of Tajikistan (the "Oxfam") based on its operational manual, which has undergone due diligence check by the World Bank. Original duration of the Project was from April 3, 2014 to January 31, 2018. According to letter from the World Bank dated January 23, 2018 there was prolongation under this Grant till May 31, 2018 and grace period had changed until September 30, 2018. 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"). 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: * Summary of funds received and expenditures paid; * Summary 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 under 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. 9 Foreign currency 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. 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 NBT. All foreign exchange differences resulted from maturity or recounting are included in the summary 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. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by advances to designated account. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at September 30, 2018, May 31, 2018, December 31, 2017 and December 31, 2016 comprise: Currency September 30, May 31, December 31, December 31, 2018 2018 2017 2016 Designated account USD - - 58,495 112,092 Escrow account in CJSC "Kazkommertsbank" USD 5,785 5,785 - - Transit account TJS - - 248 4,583 5,785 5,785 58,743 116,675 10 5. FUNDS RECEIVED The funds received are presented by the following financing methods: The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018to 2018to 2017 2016 September 30, May 31, 2018 2018 Advances - 83,654 170,000 298,846 850,000 - 83,654 170,000 298,846 850,000 6. PROJECT EXPENSES Project expenses by components are presented in the summary of expenditures paid by project components. Project expenses on major categories are presented in the summary of funds received and expenditures paid. Breakdown of project expenses by categories and nature is presented as follows: Consultancy services The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018to 2018to 2017 2016 September 30, May 31, 2018 2018 International consultants - - 12,388 - 48,170 Local consultant costs - 31,951 5,853 - 47,927 Business trips - - - - 4,118 Workshops - - 1,176 646 2,389 Per diem and accommodation - - - - 832 Bank charges - - - - 237 - 31,951 19,417 646 103,673 Training, seminars and workshops The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018 to 2018 to 2017 2016 September 30, May 31, 2018 2018 Local consultant costs - - 27,706 13,925 44,986 Workshops - 1,655 12,334 15,201 41,389 Payroll and related taxes - - 9,509 8,386 26,759 Business trips - - - - 3,602 Training - - - 2,475 Bank charges - - - 4 20 Other - 2,559 5,749 - 8,308 - 4,214 55,298 37,516 127,539 11 Goods The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018to 2018to 2017 2016 September 30, May 31, 2018 2018 Computer equipment - - 7,043 10,398 Workshops - 918 3,282 4,200 Furniture - - - 2,731 2,731 Office miscellaneous - costs - 159 2,055 2,214 IT purchase - - - - 960 Other - 997 4 1,133 - 159 3,970 13,060 21,636 Incremental operating costs The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018to 2018to 2017 2016 September 7, May 31, 2018 2018 Local consultant costs - 3,019 38,855 41,243 127,775 International staff - 12,450 529 71,730 99,364 Payroll and related taxes - 13,903 18,509 7,952 53,892 Overhead costs HQ-5% - 8,064 10,595 9,861 40,488 Vehicle fuel, insurance and maintenance - 5,514 10,165 3,700 22,098 Other staff entitlements - - - 12,908 20,764 External audit - - 10,333 10,333 20,666 Office rent and utilities - 1,099 6,931 335 10,733 Business trips - 1,336 5,697 1,955 10,710 Per diem and accommodation - 1,316 1,164 3,548 7,511 Office miscellaneous costs 613 635 - 1,976 Other - 1,182 3,564 1,426 6,933 - 48,496 106,977 164,991 422,910 12 Others (campaigns, media activities, events) The grace For the For the year For the year Cumulative period from period from ended ended June 1, January 1, December 31, December 31, 2018 to 2018 to 2017 2016 September 7, May 31, 2018 2018 Local consultant costs - 20,339 1,566 19,791 60,696 Services - 17,160 18,271 3,115 40,686 Payroll and related taxes - 590 9,114 8,728 18,432 International consultants - - - - 10,149 Project mid-term evaluation - 7,325 2,061 9,386 Final evaluation 7,798 - - 7,798 Printing - 3,468 1,422 - 4,890 Workshops - 1,748 1,090 448 4,564 Translation services - - 375 279 3,858 Business trips - - - 2,175 International staff - - - 964 Other - 812 3,000 441 4,827 - 51,915 42,163 34,863 168,425 7. FINANCIAL POSITION Financial position as at September 30, 2018, May 31, 2018, December 31, 2017 and December 31, 2016 comprise: September 30, May 31, December 31, December 31, 2018 2018 2017 2016 ASSETS AND EXPENDITURES Cash and cash equivalents 5,785 5,785 58,743 116,675 Cumulative project expenses 844,183 844,183 707,448 479,623 Foreign exchange rate differences 32 32 155 48 TOTAL ASSETS AND EXPENDITURES 850,000 850,000 766,346 596,346 FINANCING Funds received 850,000 850,000 766,346 596,346 TOTAL FINANCING 850,000 850,000 766,346 596,346 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2017, for the period from January 1, 2018 to May 31, 2018 and the grace period from June 1, 2018 to September 30, 2018 comprise: For the year ended December 31, 2017 Sources of financing Application Date Advance Total TF 015840 14 July 6, 2017 170,000 170,000 170,000 170,000 13 For the period from January 1, 2018 to May 31, 2018 Sources of financing Application Date Advance Total TF 015840 18 March 15, 2018 83,654 83,654 83,654 83,654 For the grace period from June 1, 2018 to September 30, 2018 Sources of financing Application Date Advance Total TF 015840 - - 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated account for the year ended December 31, 2017, for the period from January 1, 2018 to May 31, 2018 and the grace period from June 1, 2018 to September 30, 2018 comprise: Bank OJSC "Tojiksodirotbank" CJSC "Kazkommertsbank" Currency US Dollars US Dollars Bank account 20214840700000100013 20214840651100771006 Bank's location 47 Behzod str., Dushanbe, 24 A. Ainey str., 734012, the Republic of Dushanbe, 734012, the Tajikistan Republic of Tajikistan" Total Balance as at January 1, 2017 15,145 96,947 112,092 Advances received - 170,000 170,000 Total funds received to the designated account - 170,000 170,000 Expenses paid - 227,825 227,825 Transfer between accounts 15,145 (19,480) (4,335) Foreign exchange rate differences - 107 107 Balance as at December 31, 2017 58,495 58,495 Advances received - 83,654 83,654 Total funds received to the designated account - 83,654 83,654 Expenses paid 142,520 142,520 Transfer between accounts - (248) (248) Foreign exchange rate differences _ (123) (123) Balance as at May 31, 2018 - - - Total funds received to the designated account -- Balance as at September 30, 2018 14 10. UNDRAWN FUNDS Undrawn funds as at September 30, 2018 comprise: Grant No. TF 015840 in USD Approved financing amount 850,000 Disbursed during the period from April 3, 2014 to May 31, 2018 850,000 Disbursed during the grace period from June 1, 2018 to September 30, 2018 - Undrawn financing amount - Grant No. TF 015840 in USD Financing received as at January 1, 2017 596,346 Disbursed for the year ended December 31, 2017 170,000 Disbursed for the period from January 1, 2018 to May 31, 2018 83,654 Disbursed for the grace period from June 1, 2018 to September 30, 2018 - Financing received as at September 30, 2018 850,000 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. The Project had commitments for covering audit service expenses to Baker Tilly Klitou and Partners SRL for the year ended December 31, 2017, for the period from January 1, 2018 to May 31, 2018 and for the grace period from June 1, 2018 to September 30, 2018 in the amount of 5,883 US dollars (including withhold tax 883 US dollars). 12. GOING CONCERN The period of duration of the Project was completed on May 31, 2018 and the grace period on September 30, 2018. 13. LEGAL CASES There were no any legal cases related to the Project. 14. EVENTS AFTER THE REPORTING DATE As at the date of issue of the project financial statements no significant events or transactions occurred which should be disclosed in the project financial statements. 15