THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") AUDITED COMBINED FINANCIAL STATEMENTS For the period from 0110112018 to 31107/2019 U U October 2019 THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing- Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") TABLE OF CONTENTS CONTENTS PAGE(S) Report of the Project management unit 1 -2 Independent auditor's report on the combined financial statements 3-4 Combined statement of income, expenditure and fund balance 5 Combined statement of designated accounts 6-8 Combined statement of withdrawals 9-18 Notes to the combined financial statements 19 - 29 Independent assurance report on compliance 30-32 Independent assurance report on effectiveness of internal control 33-35 Appendix 1: Management letter 36-52 THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing - Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ('WB") COMBINED STATEMENT OF THE PROJECT MANAGEMENT UNIT The Project Management Unit of the Coastal Resources for Sustainable Development Project ("the Project Management Unit or "PMU") presents this report together with the combined financial statements of the Coastal Resources for Sustainable Development Project ("the Project") for the period from 01/01/2018 to 31/07/2019. Project Management Unit The members of the Project Management Unit who held office during the year and at the date of this report are as follows: Mr. Pham Ngoc Sao Director Mr. Chu Ngoc Phu Accountant The Project Management Unit's Statement of Responsibility The PMU is responsible for preparing the Project's combined financial statements, which give a true and fair view of the balances of assets, liabilities and funds as at 31/07/2019 as well as the receipts and disbursements of the Project for the period from 01/01/2018 to 31/07/2019, in accordance with the accounting policies set out in Note 2 and Note 3 of the Notes to the financial statements and regulations of the Financing Agreement for Credit No. IDA 5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing - Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") for the contribution from the Global Environmental Facility ("GEF") for the Project (the "Financing Agreements"); the Project's Operational Manual ("POM") and other applicable laws and regulations in preparing these combined financial statements, the PMU is required to: * Select suitable accounting policies and then apply them consistently; * Make judgments 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 for the purpose of properly preparing and presenting the financial statements so as to minimize risks and frauds. The PMU 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 ensuring that the funds have been used as intended for the Project. The PMU is also responsible for safeguarding the assets of the Project and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities. The PMU confirms that they have complied with the above requirements in preparing these combined financial statements. U THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing - Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF THE PROJECT MANAGEMENT UNIT (Continued) * STATEMENT BY THE PROJECT MANAGEMENT UNIT The Project management unit does hereby state that, in its opinion: * The accompanying combined financial statements give a true and fair view of the fund balance of the Project as at 31 July 2019, the income and expenditure for the period from 01/01/2018 to 31/07/2019, the balance of designated account as at 31 July 2019 and its movements for the period from 01/01/2018 to 31/07/2019 and capital withdrawals using the statement of expenditures for the period from 01/01/2018 to 31/07/2019 in accordance with the accounting policies as described in Note 2 and Note 3 to the financial statements and POM; * The funds provided by IDA, GEF and the Government of Vietnam are utilized for the purposes defined in the Financing Agreements; * The Project complies with the Financing Agreements, POM and other applicable laws and regulations; and * The Project designs and implements an effective internal control system to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error as well as to ensure compliance with Financing Agreements, POM and other laws and regulations applicable to the Project. For and on behalf of the PMU, Pham Ngoc Sao Director Hanoi, S.R. Vietnam 18 October 2019 2 W y AUDITING AND CONSULTING CO LTD No: 512/2019/UHY- BCKT INDEPENDENT AUDITORS' REPORT ON THE COMBINED FINANCIAL STATEMENTS To: The Project Management Unit The Coastal Resources for Sustainable Development Opinion We have audited the financial statements of the Coastal Resources for Sustainable Development (the "Project"), prepared as at 30/10/2019, from page 5 to page 29, including the combined statement of income, expenditure and fund balance as at 31/07/2019, the combined statement of designated accounts and the combined statement of withdrawals for the period from 01/01/2018 to 31/07/2019 and the notes thereto (collectively referred to as "the financial statements") In our opinion, in all material respects, the accompanying combined financial statements give a true and fair view of the balances of assets, liabilities, designated accounts, withdrawal applications and funds as at 31/07/2019 as well as the receipts and disbursements of the Project for the period from 01/01/2018 to 31/07/2019, in accordance with the accounting policies set out in the notes to the combined financial statements. 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 Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project Management Unit in accordance with the international Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. The Project Management Unit Responsibility for the combined Financial Statements The Project Management Unit is responsible for the preparation and presentation of these combined financial statements in accordance with the accounting policies as described in Note 2 and Note 3 to the combined financial statements and POM, and for such internal control as the Project Management Unit determines is necessary to enable the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility for the Audit of the Combined Financial Statements Our objectives are to obtain reasonable assurance about whether the combined 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 skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the combined 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. Head Offie: 9th Floor, HL Tower, 82 Duy Tan Str., Cau Giay Dist.. Hanoi, Vietnam Phone: 84 24.3755 7446 Fax: 84 24.3755 7448 www.uny.vn 3 An independent memberof UHY International INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS (Continued) Obtain an understanding of internal control relevant to the Project's preparation and fair presentation of 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. 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 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 (if any) in internal control that we identify during our audit. Nguyen Thi Phuong Thao Nguyen Thi Thu Ha Deputy General Director Auditor Auditor's Practising Certificate No: 0933-2018-112-1 Auditor's Practising Certificate No: 2277-2018-112-1 For and on behalf of UHY AUDITING AND CONSULTING COMPANY LIMITED Member of UHY International 18 October 2019 Hanoi, S.R. Vietnam 4 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the 01/01/2018 to 31/07/2019 Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ('WB") COMBINED STATEMENT OF INCOME, EXPENDITURE AND FUND BALANCE For the period from 01101/2018 to 31/07/2019 and as at 31/07/2019 Currency: VND Acumulated for U ~~~~For the period thpeodfm Notes from 01/01/2018 the period from to 31107/2019 10/2019 31/0712019 INCOME Contribution from the International Development 4.1 326,561,600,837 1605,410,167,627 Association through Designated Account Contribution by direct payment from the International 4. 55277,206,961 406,032,017,326 Development Association Contribution from the Global Environment Facility 4.2 87,471,806,987 144,775,027,466 Contribution form the Government of Viet Nam 5 61,966,638,219 212,351,664,732 TOTAL INCOME 531,277,253,004 2,368,568,877,151 EXPENDITURE Institutional Capacity Strengthening for Sustainable 11,436,255,000 61,713,802,976 Fishery Management Good Practices for Sustainable Aquaculture 144,956,504,408 883,704,645,921 Sustainable Management of Near-Shore Capture 272,619,496,300 1,212,275,790,457 Fisheries Project Management, Monitoring and Evaluation 26,166,980,417 200,232,158,263 TOTAL EXPENDITURE 6 455,179,236,125 2,357,926,397,617 (DEFICIT)/SURPLUS OF INCOME OVER 76,098,016,879 10,642,479,534 EXPENDITURE Foreign exchange differences 2,413,962,343 16,165,454,945 FUND BALANCE AT THE BEGINNING OF THE (51,704,044,743) YEARIPERIOD FUND BALANCE AT THE END OF THE 26,807,934,479 26,807,934,479 YEARIPERIOD26879449 280,349 In which: Cash 7 31,505,679,733 Advance to Project's employee 87,623,433 Advance to suppliers 8 1,733,614,505 Other receivables 198.128.254 Salary payable to employees 453,000 Other payables 10 (467,291,097) Payables to suppliers 9 (6,020,115,121) Taxs andamounts payable to the State budget (230.158.228) TOTAL 26,807,934,479 nam TNgoc Sao ChuNgoc hu Director Accountant Hanoi, S.R. Vietnam 18 October 2019 The accompanying notes are an integral part of these combined financial statements 5 NNNONNNONNOEEMO MON mom O W AOO NONEa aa THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF DESIGNATED ACCOUNT As at 31/07/2019 Currency: USD BALANCE AND MOVEMENTS OF DESIGNATED ACCOUNT (Original currency) Notes PCU Thanh Hoa Nghe An Ha Tinh Binh Dinh Phu Yen Khanh Hoa Ca Mau Soc Trang Ninh Thuan Total Balance as at 31 December 2017 1,634,498 154,091 107,781 58,068 78,696 79,652 101,891 29,970 733,315 2,791 2,980,753 Add Amount deposited by the International Development 4.3 1,520,866 465,386 332,764 583,372 1,071,529 404,229 1,149,788 2,027,983 3,619,759 3,100,739 14,276,415 Association Amount deposited by the GEF 4.3 216,166 618,590 201,036 149,063 427,576 499,662 471,249 431,252 801,759 - 3,816,353 Bank interest - - - - - - - - - - - Total amount refunded for 92,094 - - 92,094 unreasonable expenses Bank refund of withdrawal 120 - 120 applications Recovery of equipment purchase 599 - - 599 costs Foreign exchange difference - - - - - - - - - - - Deduct Amount withdrawn from (3,297,601) (1,135,164) (456,198) (770,469) (1,484,741) (936,222) (1,684,436) (2,217,786) (5,115,376) (3,102,227) (20,200,220) Designated account (*) Refund to the World Bank - - - - (93,060) - - - - - (93,060) Balance as at 31 July 2019 7 166,023 102,903 185,383 20,633 - 47,321 38,492 271,419 39,677 1,303 873,054 Balance as at 31 July 2019 per 7 166,023 102,903 185,383 20,633 - 47,321 38,492 271,419 39,677 1,303 873,054 bank statement The accompanying notes are an integral part of these combined financial statements 6 MEN...EOWOE.ggag..aggagagagaggagga THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF DESIGNATED ACCOUNT - VND equivalent (continued) Currency: VND lotes PcU Thanh Hoa Nghe An Ha Tinh BinhDinh Phu Yen KhanhHoa ca Mau SocTrang NinhThuan Total Balance as at 31 December 2017 36,874,252,771 3,494,777,076 2,416,999,240 1,292,208,766 1,787,940,788 1,806,509,628 2,284,896,481 679,567,256 16,624,251,504 66,113,482 67,327,516,992 Add Amount deposited by the International 4.3 34,705,416,917 10,498,506,677 7,551,032,342 13,199,789,271 24,598,920,281 9,085,683,090 26,056,474,970 46,598,131,243 83,660,080,129 70,744,743,248 326,698,778,168 Development Association Amount deposited by the 4.3 4,961,784,817 14,063,023,128 4,576,109,110 3,412,052,070 9,817,211,206 11,374,826,071 10,719,548,297 9,942,871,556 18,592,788,148 87,460,214,403 Bank interest- Total amount refunded for unreasonable 2,140,226,262 _ 2,140,226,262 expenses - Bank refund of.- withdrawal-- applications - -- 2,800,800 2,800,800 I te c o ve ry2 _s o f -- ------ --- - ----- - - - -I- - - - - - --- ----- - - - - - --------- ------------------------ ------------ ------ ------ - - ----- - - - - -- - - - -- - - - - -- - - - - --------- - -- - - - -- - - - - -- - - - -- - - - -- - - - - - - - ------ - - -------- - - - -- - - - - - - - - - - - - -- - - - - - - - - - Recovery of.f equipment - - 13,600,000 - - - 13,600,000 -For ---- xc--ge --------------------------------------------------------------------------------------------------------------------- ------- ------------- difference 384,534,963 414,531,416 230,862,197 (81,976,756) - 406,047,914 343,898,432 247,702,038 143,123,552 325,238,587 2,413,962,343 Deduct withdrawn from Designated (75,220,285,754) (26,087,667,533) (10,497,663,237) (17,355,954,473) (34,195,982,391) (21,623,932,568) (38,628,049,437) (51,196,056,942) (118,106,831,027) (71,105,912,234) (464,018,335,596) accountO Othlr 2019 7-8 3- 4599,7 2 374,285,000 4 3 479,188 - 1,04,13,13 (2,008,089,8847684 6 , 92 -2,01,748848 Balance as at 31 7 3,845,929,976 2,374,285,764 4,277,339,652 479,718,878 1,049,134,135 776,768,743 6,272,215,151 916,213,106 30,183,083 20,021,788,488 hi 2019 - - --- accomanyin notes----- are-an-integral part----- of-- these c- f l s a aceas at 31 ----------- July 2019 per 7 3,845,929,876 2,374,285,764 4,277,339,652 479,718,878 - 1,049,134,135 778,768,743 6,272,215,151 916,213,106 30,183,063 20,021,788,488 bank statement The accompanying notes are an integral part of these combined financial statements7 WWNON EEoaggam Ugaggagagga a aggaggag g THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF DESIGNATED ACCOUNT (CONTINUED) As at 31107/2019 Currency: USD RECONCILIATION OF DESIGNATED ACCOUNT PCU Thanh Nghe Ha Tinh Binh Dinh Phu Khanh Ca Iau Soc Ninh Total Hoa An Yen Hoa Trang Thuan Initial withdraw 2,673,754 600,000 600,000 555,968 600,000 600,000 1,058,856 600,000 1,020,336 199,102 8,508,016 In which: Initial withdrawal from the International Development 2,573,754 500,000 500,000 455,968 500,000 500,000 958,856 500,000 920,336 199,102 7,608,016 Association Initial withdrawal from the Global Environment Facility 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 - 900,000 Increase Ceiling designated account of the International Development 1,520,896 300,000 - 365,856 1,071,528 - 1,149,808 674,512 1,854,742 3,100,740 10,038,082 Association Ceiling designated account of the Global Environment Facility 60,000 - - 149,067 427,576 - 471,269 333,413 252,000 - 1,693,325 Decrease Ceiling designated account of the International Development 3,952,344 200,000 402,038 803,862 1,569,649 465,308 2,070,134 903,728 2,741,561 3,298,178 16,406,802 Association Amount recovered by the Global Environment Facility 136,058 496,675 11,739 246,396 527,247 86,582 571,249 432,778 345,940 - 2,854,664 Amount recovered by the International Development Association - 99,707 - - - - - - - - 99,707 Outstanding advance from the International Development Association and Global Environment Facility to designated 166,248 103,618 186,223 20,633 2,208 48,110 38,550 271,419 39,577 1,664 878,250 account as at 31 July 2019 Balance of designated account as at 31 July 2019 166,023 102,903 185,383 20,633 - 47,321 38,492 271,419 39,577 1,303 873,054 Add Intermediary bank charges 225 715 840 - 2,208 789 58 - - 361 5,196 Deduct Total advance to designated account accounted for as at 31 166,248 103,618 186,223 20,633 2,208 48,110 38,550 271,419 39,577 1,664 878,250 July 2019 The accompanying notes are an integral part of these combined financial statements 8 NNNN..WWNNWWWWWNOONWONWWOON.NWW.NN THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS For the period from 01/01/2018 to 31/07/2019 Application Initial withdrawal Institutional Policy Practical experience for Practical experience for Project management Other ( Total No. sustainable aquaculture sustainable coasting fishing USD VND equivalent USD VND equivalent USD VND equivalent USD VND equivalent USD VND equivalent USD VND equivalent USD VND equivalent Accumulated as at 31/1212017 6,400,000 135,607,193,768 958,169 21,223,237,670 29,582,037 653,076,677,891 36,272,157 798,079,684,273 5,285,668 114,884,419,930 5,438,792 123,042,727,919 83,936,823 1,845,913,941,451 Increase during the ear: Pcu: Withdrawal - - 234,948 5,306,975,256 323,660 7,310,839,990 89,629 2,022,474,800 308,427 6,955,910,027 - - 956,664 21,596,200,073 Application No. 35/PCU Withdrawal - - 716,807 16,170,164,904 657,168 14,818,470,109 7,633 172,203,000 141,563 3,187,552,249 - - 1,523,171 34,348,390,262 Application No. 36/PCU Withdrawal - - - - - - - - - - 906,081 20,504,611,899 906,081 20,504,611,899 Application No. 37/PCU Withdrawal -- 92,730 2,117,377,000 441,235 10,125,944,164 5,315 122,613,000 75,536 1,737,434,572 414,815 9,561,493,818 1,029,631 23,664,862,554 Application No. 38/PCU Withdrawal - - - - 344,151 7,932,793,804 1,783 41,155,500 45,493 1,048,812,000 - - 391,427 9,022,761,304 Application No. 39/PCU Withdrawal - - - - - - - - - - 200,000 4,640,000,000 200,000 4,640,000,000 Application No. 40/PCU Withdrawal - - 132,983 3,069,244,000 259,936 6,001,490,102 5,191 119,900,000 68,157 1,570,880,920 - - 466,267 10,761,515,022 Application No. 41/PCU Withdrawal - - 5,647 125,963,200 - - 65,387 1,477,737,800 - - - - 71,034 1,603,701,000 Application No. 05/GEF Withdrawal - - - - - - 85,162 1,969,291,388 - - - - 85,162 1,969,291,388 Application No. 06/GEF Withdrawal - - 1,918 44,306,000 - - 66,041 1,526,950,253 - - - - 67,959 1,571,256,253 Application No. 07/GEF Withdrawal - - - - - - - - - - 60,000 1,392,000,000 60,000 1,392,000,000 Application Withdrawal - - - - - - 68,099 1,573,932,663 - - - - 68,099 1,573,932,663 Application No. 09/GEF Total - - 1,185,033 26,834,030,360 2,026,150 46,189,538,169 394,240 9,026,258,404 639,176 14,500,589,768 1,580,896 36,098,105,717 5,825,495 132,648,522,418 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 9 MEWWWWWWWNWWWWWWE NAEWWWWEEn O..MO THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 0110112018 to 31/0712019 Initial withdrawal Institutional Policy Practical experience for Practicaleeeng sor Project management Other (*)Total sustainable aquaculture sustainable coasting fishing Poetmngmn te * Application No. USD VND equivalent USD equivaD USD VND equivalent USD VND equivalent USD equivND USD VND equivalent USD VND equivalent Thanh Hoa Withdrawal - - - - 282,068 6,396,719,000 36,398 825,489,000 13,244 300,366,000 - - 331,710 7,522,574,000 Application No. 29rTH Withdrawal - - - - 133,716 3,040,736,000 - - - - - - 133,716 3,040,736,000 Application No. 30/TH Withdrawal - - 11,253 250,622,000 - - 56,393 1,256,981,000 - - 500,000 11,389,880,403 567,646 12,897,483,403 Application No. 07/GEF/TH Withdrawal - - - - - - - - - - 50,984 1,166,451,725 50,984 1,166,451,725 Application No. 09/GEFITH Total - 11,253 250,622,000 415,784 9,437,455,000 92,791 2,082,470,000 13,244 300,366,000 550,984 12,556,332,128 1,084,056 24,627,245,128 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 10 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 01/01/2018 to 3110712019 Initial withdrawal Institutional Policy suaintiale ure sutinabe coasteng is irng Project management Other () Total VND VND VND VND VND Application No. USD equivalent USD equivalent USD equivalent USD VND equivalent USD equivalent USD equivalent USD VND equivalent Nghe An Withdrawal Application No. - - 18,091 410,452,000 198,474 4,500,707,130 71,301 1,616,462,193 34,841 790,080,359 - - 322,707 7,317,701,682 33/NA Withdrawal Application No. - - - - - 241,033 5,463,252,000 - - - - 241,033 5,463,252,000 34/NA Withdrawal Application No. - - - - - - 196,049 4,455,221,000 - - - - 196,049 4,455,221,000 35/NA Withdrawal Application No. - - - - - - 315,160 7,168,944,000 - - - - 315,160 7,168,944,000 36/NA Withdrawal Application No. - - - - 10,078 233,800,000 - - - - - - 10,078 233,800,000 37/NA Withdrawal Application No. - - 44,148 1,001,535,000 - - 52,242 1,184,051,400 - - - - 96,390 2,185,586,400 12/NA/GEF Withdrawal Application No. - - - - - - 72,331 1,641,200,000 - - - - 72,331 1,641,200,000 13/NA/GEF Withdrawal Application No. - - - - - - 32,344 750,020,000 - - - - 32,344 750,020,000 14/NA/GEF Total - - 62,239 1,411,987,000 208,552 4,734,507,130 980,460 22,279,150,593 34,841 790,080,359 - - 1,286,092 29,215,725,082 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 11 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 01101/2018 to 31/07/2019 Initial withdrawal Institutional Policy Practical experience for Practical experience for Project management Other (*) Application No. VND sustainable aquaculture sustainable coasting fishing VND Total USD VND equivalent USD equivaD USD VND equivalent USD VND equivalent USD equivND USD VND equivalent USD VND equivalent Ha Tinh Withdrawal - - - - 179,298 4,066,128,200 171,958 3,900,019,000 14,600 331,109,000 365,856 8,297,256,200 Application No. 22/1DA Withdrawal - - - - - - - - - - 365,856 8,267,613,436 365,856 8,267,613,436 Application No. 23/IDA Withdrawal - - - - - - 148,789 3,357,860,000 - - 148,789 3,357,860,000 Application No. 24/IDA Withdrawal - - - - - 151,441 3,475,113,000 - - 151,441 3,475,113,000 Application No. 25/IDA Withdrawal - - 17,704 394,262,000 241,602 5,570,864,200 131,809 2,989,243,800 343 7,801,000 - - 391,458 8,962,171,000 Application No. 26/1DA Withdrawal - - - - - - 61,780 1,430,527,000 - - - - 61,780 1,430,527,000 Application No. 27/1DA Withdrawal - - - - - - - - - - 149,067 3,412,052,670 149,067 3,412,052,670 Application No. 07/GEP Withdrawal - - 14,324 324,515,000 - - 33,122 751,600,000 - - - - 47,446 1,076,115,000 Application No. 08/GEP Withdrawal - - 85,063 1,952,817,000 - - 113,833 2,602,672,800 - - - - 198,896 4,555,489,800 Application No. 09/GEP Total - - 117,091 2,671,594,000 420,900 9,636,992,400 812,732 18,507,035,600 14,943 338,910,000 514,923 11,679,666,106 1,880,589 42,834,198,106 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 12 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 01/01/2018 to 31/07/2019 Practical Initial withdrawal Institutional Policy esenate f sutalnabe coas tng ishirng Project management Other (*) aquaculture Total VND VND VND ..VND USD equival USD equivalent USD equivalent USD VND equivalent USD VND equivalent USD equivalent USD VND equivalent Application No. ent Binh Dinh Withdrawal Application No. 41/BD - - - - - - 8,755 198,511,000 2,780 62,643,000 - - 11,535 261,154,000 Withdrawal Application No. 42/8D - - - - - - 300,000 6,820,500,000 - - - - 300,000 6,820,500,000 Withdrawal Application No. 43BD- - - 56,382 1,287,191,000 - - - - 56,382 1,287,191,000 Withdrawal Application No.44/BD- - - - 73,924 1,719,102,000 - - - - 73,924 1,719,102,000 Withdrawal Application No. 45/BD- - - 184,296 4,294,076,000 - - - - 184,296 4,294,076,000 Withdrawal Application No. 46/BD - - - - - - 87,543 2,036,852,000 3,248 73,798,000 - - 90,791 2,110,650,000 Withdrawal Application No. 47/BD - - - - - - 107,385 2,493,969,000 - - - - 107,385 2,493,969,000 Withdrawal Application No. 09/GEF- - - 98,000 2,228,030,000 - - - - 98,000 2,228,030,000 Withdrawal Application No. 10/GEF - - 35,141 798,929,000 - - 62,688 1,425,205,000 - - - - 97,829 2,224,134,000 Withdrawal Application No.1 1/GEF - - 4,101 93,260,000 - - 48,300 1,099,442,000 - - - - 52,401 1,192,702,000 Withdrawal Application No. 12/GEF - - 1,832 41,263,000 - - 76,735 1,737,814,000 - - - - 78,567 1,779,077,000 Withdrawal Application No. 13/GEF - - 1,607 37,400,000 - - 31,898 739,113,000 - - - - 33,505 776,513,000 Withdrawal Application No. 14/GEF - - 2,488 57,745,000 - - 64,846 1,502,208,000 - - - - 67,334 1,559,953,000 Total - - 45,169 1,028,597,000 - - 1,200,752 27,582,013,000 6,028 136,441,000 - - 1,251,949 28,747,051,000 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 13 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 0110112018 to 31/07/2019 Initial withdrawal Institutional Policy Practical experience for Practical experience for Project management Other (*) Total Iniialwitdraal nsttutona Poicy sustainable aquaculture sustainable coasting fishing USD VND USD VND USD eqi USD VND equivalent USD e VD USD VND USD VND equivalent Application No. equivalent equivalent UO equivalent equivalent equivalent Phu Yen Withdrawal Application No. 44/PY - - - - 19,555 444,536,000 72,978 1,670,265,000 3,094 70,867,000 - - 95,627 2,185,668,000 Withdrawal Application No. 12/GEF - - - - - - 79,225 1,797,413,814 - - - - 79,225 1,797,413,814 Withdrawal Application No. 13/GEF - - 15,286 347,746,000 - 27,596 627,666,229 - - - - 42,881 975,412,229 Withdrawal Application No. 14/GEF - - - - - - 19,158 442,690,000 - - - - 19,158 442,690,000 Withdrawal Application No. 15/GEF - - 19,847 442,000,000 - - 533 12,000,000 - - - - 20,380 454,000,000 Withdrawal Application No. 16/GEF - - 21,256 495,364,000 - - 48,110 1,121,121,000 - - - - 69,366 1,616,485,000 Withdrawal Application No. 17/GEF - - - - - - 24,309 565,778,000 - - - - 24,309 565,778,000 Withdrawal Application No. 18/GEF - - - - - - 36,469 848,349,000 - - - - 36,469 848,349,000 Withdrawal Application No. 19/GEF - - - - - - 34,051 792,528,000 - - - - 34,051 792,528,000 Withdrawal Application No. 20/GEF - - - - - - 36,545 849,141,000 - - - - 36,545 849,141,000 Withdrawal Application No. 21/GEF - - - - - - 48,473 1,122,387,000 - - 48,473 1,122,387,000 Withdrawal Application No. 22/GEF - - - - - - 43,187 1,000,000,000 - - - - 43,187 1,000,000,000 Withdrawal Application No. 23/GEF - - - - - - 45,858 1,061,841,000 - - - - 45,858 1,061,841,000 Total - - 56,389 1,285,110,000 19,555 444,536,000 516,491 11,911,180,043 3,094 70,867,000 - - 595,529 13,711,693,043 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 14 NNEMWNEENNENNUAMONWNOWMWWWOWWNNWWWn THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 01/01/2018 to 31/0712019 Initial withdrawal Institutional Policy sstcn be xpectur sustinble oasteing s hrng Project management Other (*) Total USD VND USD VND USD VND equivalent USD VND equivalent USD VND equivalent USD VND equivalent USD VND equivalent Application No. equivalent equivalent Khanh Hoa WithdrawalApplication - - - - 107,727 2,417,179,997 189,905 4,261,088,839 45,821 1,028,128,905 - - 343,453 7,706,397,741 No. 28/KH Withdrawal Application - - - - - - 149,371 3,368,009,071 - - - - 149,371 3,368,009,071 No. 29/KH Withdrawal Application - - - - 23,278 524,924,538 301,193 6,791,890,424 66,922 1,509,098,542 - - 391,393 8,825,913,504 No. 30/KH Withdrawal Application - - - - - - 204,454 4,653,783,242 - - - - 204,454 4,653,783,242 No. 31/KH Withdrawal Application - - - - - - 157,435 3,607,631,648 - - - - 157,435 3,607,631,648 No. 33/KH Withdrawal Application - - - - - - 414,962 9,524,163,726 - - - - 414,962 9,524,163,726 No. 36/KH Withdrawal Application - - - - - - 310,000 7,018,400,000 - - - - 310,000 7,018,400,000 No. 04/GEF Withdrawal Application - - - - - - 161,269 3,701,148,297 - - - - 161,269 3,701,148,297 No. 05/GEF Total - - - - 131,005 2,942,104,535 1,888,589 42,926,115,247 112,743 2,537,227,447 - 2,132,337 48,405,447,229 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 15 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 01/01/2018 to 31107/2019 Initial withdrawal Institutional Policy Pustinbl aqpacuture suPtiale coasting ih ing Project management Other (*) Application No. sustainabl aquaculture stibcangsnTa USD equiva equivale n equivaNt USD VND equivalent USD VND USD e V USD VND equivalent Feq . US VN entV equivalent equivalent equivalen equivalent Ca Mau Withdrawal Application No. - - - - 176,779 4,013,590,600 437,027 9,922,262,000 2,538 57,618,000 - - 616,344 13,993,470,600 40/CM Withdrawal Application No. - - - - 151,382 3,432,545,900 106,954 2,425,085,000 20,528 465,535,500 - - 278,864 6,323,166,400 47/CM Withdrawal Application No. - - 19,278 438,448,000 38,242 870,119,000 116,859 2,656,382,500 1,109 25,200,000 - 175,488 3,990,149,500 48/CM Withdrawal Application No. - - - - - - 176,819 4,000,000,000 - - - - 176,819 4,000,000,000 49/CM Withdrawal Application No. - - 9,526 219,224,000 55,227 1,272,366,000 396,506 9,195,990,000 - - - - 461,259 10,687,580,000 50/CM Withdrawal Application No. - - - - 44,571 1,036,473,000 162,186 3,776,366,000 - - - - 206,757 4,812,839,000 51/CM Withdrawal Application No. - - - - - - - - - 250,000 5,789,000,000 250,000 5,789,000,000 52/CM Withdrawal Application No. - - - 195,100 4,518,256,000 679,437 15,733,074,700 - - - - 874,537 20,251,330,700 53/CM Withdrawal Application No. - - - - - - 38,774 897,340,000 - - - - 38,774 897,340,000 54/CM Withdrawal Application No. - - 2,594 57,738,000 - - 95,257 2,155,024,000 - - - - 97,851 2,212,762,000 09/GEF/CM Withdrawal Application No. - - 8,820 200,000,000 - - 197,026 4,468,924,000 - - - - 205,846 4,668,924,000 10/GEF/CM Withdrawal Application No. - - - - - - - - - - 185,000 4,306,985,000 185,000 4,306,985,000 11/GEF/CM Withdrawal Application No. - - - - - - - - - 26,000 602,030,000 26,000 602,030,000 13/GEF/CM Withdrawal Application No. - 33,998 788,317,000 - - 191,778 4,432,936,650 - - - - 225,776 5,221,253,650 14/GEF/CM Total - 74,216 1,703,727,000 661,300 15,143,350,500 2,598,623 59,663,384,850 24,175 548,353,500 461,000 10,698,015,000 3,819,315 87,756,830,850 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 16 .NNONNOMMONNNONNNNO.NONON.momW NNNN THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") COMBINED STATEMENT OF WITHDRAWALS (CONTINUED) For the period from 01/01/2018 to 31/0712019 Initial Intttoa oiyPractical experience for Practical experience for Poetmngmn te withdrawal Institutional Policy l aquaculture sustainable coasting fishing Project management Other (*) Total VND Us D equ i vND USD VND equivalent USD VND equivalent USD VND USD VND equivalent USD VND equivalent 0 vale equivalent equivalent Application No. nt Soc Trang Withdrawal Application No. 37/ST - - 5,793 131,320,000 237,942 5,394,153,800 442,955 10,041,796,848 1,342 30,412,000 - - 688,032 15,597,682,648 Withdrawal Application No. 38/ST - - - - 111,627 2,530,572,000 93,537 2,120,494,800 21,508 487,596,461 - - 226,672 5,138,663,261 Withdrawal Application No. 39/ST - - - - - - 272,267 6,166,837,000 - - - - 272,267 6,166,837,000 Withdrawal Application No. 40/ST - - - - - - 144,859 3,298,448,000 354,742 8,059,733,923 499,601 11,358,181,923 Withdrawal Application No. 41/ST - - - - - - 175,150 4,067,676,000 918 20,895,000 1,500,000 34,920,000,000 1,676,068 39,008,571,000 Withdrawal Application No. 421ST - - - - 586,758 13,665,590,000 259,313 6,039,410,000 - - - - 846,071 19,705,000,000 Withdrawal Application No. 43/ST - - - - - - 352,307 8,026,600,000 - - - - 352,307 8,026,600,000 Withdrawal Application No. 44/ST - - - - 757,590 17,566,502,000 445,380 10,336,401,500 - - - - 1,202,970 27,902,903,500 Withdrawal Application No. 45/ST - - - - 183,586 4,250,017,800 410,081 9,493,382,000 - - - - 593,667 13,743,399,800 Withdrawal Application No. 46/ST - - - - 36,993 856,626,000 319,029 7,386,277,000 - - - - 356,022 8,242,903,000 Withdrawal Application No. - - 24,353 552,636,200 - - 62,472 1,417,353,100 - - - - 86,825 1,969,989,300 05/GEF/ST Withdrawal Application No. - - 8,547 197,468,000 - - 75,029 1,719,967,700 - - - - 83,576 1,917,435,700 06/GEF/ST Withdrawal Application No. - - - - - - 99,850 2,319,170,000 - - - - 99,850 2,319,170,000 07/GEFIST Withdrawal Application No. - - - - - - 94,577 2,201,711,000 - - 200,000 4,630,000,000 294,577 6,831,711,000 08/GEF/ST Withdrawal Application No. - - 185 4,307,000 - - 138,378 3,221,442,800 - - - - 138,563 3,225,749,800 09/GEF/ST Withdrawal Application No. - - - - - - 211,136 4,892,589,500 - - - - 211,136 4,892,589,500 10/GEFIST Withdrawal Application No. - - - - - - - - - - 52,000 1,211,080,000 52,000 1,211,080,000 1 1/GEF/ST Withdrawal Application No. - - - 31,778 735,869,700 - - - - 31,778 735,869,700 12/GEF/ST Withdrawal Application No. - - - - - - 149,464 3,467,997,300 - - - - 149,464 3,467,997,300 13/GEFIST Total - - 38,878 885,731,200 1,914,496 44,263,461,600 3,777,561 86,953,424,248 23,768 538,903,461 2,106,742 48,820,813,923 7,861,446 181,462,334,432 (*) Advance claimed The accompanying notes are an integral part of these combined financial statements 17 ■ � w и с� и v и � й с� rn w r с� с� й и м � о и т г� й со й v н м � и �� � й � о � амi й т �о ■ г Q О � .- ;� м со й .- и Ш п N ❑ с°� v м й °о v м � О О > N v � Г й й т ■ Ш _ �° и v Q Q М F° г� Н Ф О ■ (� � р о о о о о о� о о о о о о м J �_ � о о о а� � а о � й оо N � й м й V Ш N о ш г. и а ■ г пi r й н Q О�_ N ' �i Ш � � � � � � д. м �'1 ❑ � �ы n Ш � й о '', г � м и � т ш т ш с� �n 'ГL р аио_ т 7 о ' г U � > � N а� i ` г � о � о � V р � � � � � и � р� С ■ � = й м Z � � д' й 3 t� с1 й и .� U � ьn _о U Q ■ й и и � (6 � � � � � м и О с � м й ■ о . U � и v_ с0 и ш � � = о _ ы � й ■ о w � т р � й С `�- W � > о м о О = � Ф г ш р � н о � � р � � � � � с Z �` р н r й О °' ^ � i � � о � � U N й р о � � Ф Ui со и с� т v �� J� � й с� и оа г� v Q � � N и СО м 1� t� О о с � � м О L � Ф Г � Г � О ONi 3 и v м v о U � � �, � � - ■ д � �� �_' р ° v м й оо й о , � лN =`р 'а � j c�i и� й � '� м �_ и > � о тд � � � Z ~ �- ° ш ■ � м LL � � � � о °о й � й т о ' т т о о v м � w н й� О � 4 й = °' о N `° а й й . � О г� N N � й ш С � � � о � о v и И ■ о Z Ш� � °о °о м й о с ~ у � � ? й й о aNO о U �� Q �� и и и � Ш ` Ш ё"' ��.+ cmi � � .- м о � ■ О� ш и о °-' � г о_ о �� � � О � ш LL Q т > � о `* n с0 � U� о� т � � . . ~ о ¢ � `E `6 ' ' и ' т ге � Z�� т ц= р � Г N � Ш р т � �� � v_ � г� G � � ш Ur � а й ro о cOы й � n- � ш � � V м м и м С_ Ш � U � ■ Ш z о � й й U � р й � � Г Ш � � м� и т с � � � й - Q и ° т °г ° `ч "' � Z 0 а о > м й о Q Z � � с'СЕ Q оо r � и � о .и р � � � � N � Q F = � � ^ � и U'О �р й й Q�j г р � � о т� N с ■ � Ш -- :- , . , , � �г лг сЛ ш 0 с й '^ т .. т ■ S` Ш � � � .м°f- с�Е С7 �� о п � ы с � � � °' ;_, `о � р и ` а � р� .U � � > м � � �� �� '� т � Ш С О Ш � � `` / О w� � г�'� й� �о Г � _ р � � � � � о �� \ � о F �. U Q��"о � � о°_ � U � о ггВ Ш f- � с с9 р оо у О [У � 4 О Q а� Ё� а ц г� й.Q � � О� о р и > Е �'о о о а U р с� N Ш о J ы � Q . . � д � S= С Ш� о �г�oFmoFmo�mo� иа- и O1 ;. . д. � Т N т 1- 1- � 0 О L3 г3-г3 г3 г О з о � Е'^ � ~�о .� о�v` .� о�`v .� о а � о ~ � � �Q r r а L а = Q = Q �о Ф � т о р. О С� 0. о'J О_ О'� д О� Q О ¢г г�аг�¢г�¢г�¢г~й4�м THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of 01/01/2018 to 31/07/2019 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS 1. GENERAL INFORMATION On 9 August 2012, the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") signed the Financing Agreement for the Coastal Resources for Sustainable Development Project ("the Project") in accordance with Credit No. 5113 - VN with total credit facility of USD 100 million ("Financing Agreement"), The Financing Agreement has been effective after 90 days from the signing date. On 2 May 2013, the World Bank ("W13"), acting as an implementing agency of the Global Environment Facility ("GEF") and the Government of the Socialist Republic of Vietnam signed Grant Agreement No. TF014293 - VN ("Financing Agreement") with total amount of USD 6.5 million for additional financing to the Coastal Resources for Sustainable Development Project. The Financing Agreement has been effective from the date of signing. The overall objective of the Project is to improve the sustainable management of coastal fisheries in the selected provinces. The overall objective would be achieved through: (i) Strengthening institutional capacity for fisheries sector through sustainable management of resources; (ii) Promoting good practices for a sustainable aquaculture; and (iii) Implementing good practices for sustainable near-shore capture fisheries. The project area covers 226 poor communes, 37 districts in 8 provinces, including Thanh Hoa, Nghe An, Ha Tinh, Khanh Hoa, Phu Yen, Binh Dinh, Soc Trang, Ca Mau. As of 13 April 2016, Ninh Thuan is included in the Project under Document No. 621frTg-QHQT dated 13 April 2016 of the Prime Minister Nguyen Xuan Phuc. The Project is Implemented by the Ministry of Agriculture and Rural Development under a decentralized system consisting of 9 implementing provincial project management units ("PPMU"). At Hanoi, the Project is Implemented by Provincial Department of Agriculture and Rural Development, and centrally managed by the Central Project Management Unit. The Project consists of 4 following components: (i) Component A - Institutional Capacity Strengthening for Sustainable Fishery Management: includes 3 sub-components: Sub-component Al: Integrated Spatial Planning of Coastal Areas; Sub-component A2: Upgrading of Vietnam fishery database (Vnfishbase); and Sub-component A3: Conducting Selected Policy Research. (ii) Component B - Good Practices for Sustainable Aquaculture: includes 3 sub-components: 0 Sub-component B1: Improved Bio-security Management; 0 Sub-component B2: Improved Seed Quality Management; and 0 Sub-component B3: Improved environmental monitoring. (iii) Component C - Sustainable Management of Near-shore Capture Fisheries, includes 2 sub- components: 0 Sub-component Cl: Co-Management of Near-Shore Capture Fisheries; and 6 Sub-component C2: Improvement of Hygienic Conditions and Operation Efficiency of selected fishing ports and landing sites. 19 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of 01/01/2018 to 31/07/2019 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 1. GENERAL INFORMATION (CONT'D) (iv) Component D - Project Management, Monitoring and Evaluation: includes 2 sub-components: * Sub-component D1: Project Management; and * Sub-component D2: Project Monitoring and Evaluation. 2. ACCOUNTING CONVENTION AND ACCOUNTING PERIOD Accounting convention The Project's financial statements, except for the combined statement of designated account and combined statement of withdrawals, are presented in Vietnam dong ("VND"). The combined statement of designated account is presented in United States dollar ("USD") and the combined statement of withdrawals is presented in both USD and VND. The Project's financial statements are prepared in accordance with the accounting policies described in Note 3 and in line with the Project's Operational Manual ("POM"). According to the Financing Agreement, the financial statements include expenditures which incurred from 9 August 2012 (the Financing Agreement's date), before the effective date of the Financing Agreement on 7 November 2012. Accounting period The Project's financial year begins on 1 January and ends on 31 December. This Financial statements are prepared for the period from 01/01/2018 to 31/07/2019. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies, which have been adopted by the Project Management Unit in the preparation of these financial statements, are as follows: Basic of Combination The combined fund balance items are the sum of all corresponding items as at 31 July 2019 of the PCU and 9 PPMUs. The combined income and expenditure are the sum of all corresponding income and expenditure incurred for the period from 01/01/2018 to 31/07/2019 of the PCU and 9 PPMUs. There is no intra-project transaction and/or transactions among related projects that were required to be eliminated in the combined financial statements. Contribution from International Development Association ("IDA") and Global Environment Facility ("GEF") Contributions from IDA and GEF are recognized when funds from IDA and GEF (including intermediary bank's bank charges) are transferred to the Project's designated account which is managed by the central project management unit, rather than when being committed or budgeted. Contribution from the Government of Vietnam ("Counterpart funds") Receipts from Counterpart funds are recognized when cash is deposited in the Project's State Treasury Accounts or when disbursements are made through the State Treasury Accounts, rather than when being committed or budgeted. 20 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of 01/01/2018 to 31/07/2019 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ('WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D) Receivables Receivables are recognised on the basis of actual amounts as arisen and amounts advanced to suppliers in accordance with the terms of the contract. Expenditure Expenditure is recognised when the activities are completed and the related accounting documents are approved by the PMU. Foreign exchange differences Income and expenditure in foreign currencies (other than VND) are converted into VND using the exchange rate ruling at the date of transaction. Monetary items included in the fund balances of PCU and 9 PPMUs, which are denominated in foreign currencies, are translated into VND at the buying exchange rate quoted by Vietnam Bank for Agriculture and Rural Development - Tay Ho Branch, Hanoi and branches of Vietnam Bank for Agriculture and Rural Development at nine provinces that PPMUs open bank account at the reporting date. Foreign exchange difference is not cash flow. However, effect of changes in exchange rate of cash and cash equivalents is separately presented in Statement of Sources and Use of Fund for balancing the opening and closing balance. Foreign exchange differences are presented separately in the statement of income, expenditure and fund balance for the reporting year. Advances Advances to the Project officers and suppliers to implement the Project's activities are carried as part of the fund balance until subsequent liquidation or clearance at approval of the Project management unit. Payables Payables are recognised for amounts to be paid in the future for goods and services that are delivered and of which notice of work completion or equivalent documents have been reported to and approved by the Project Management Unit. Other payables Other payables include: Bank interest being recognised when cash is actually received, after being netted of with the bank charges incurred during the period; Receipts from selling bidding documents being recognised when cash is actually received, after being netted off with expenditures for bidding activities and other payables. Capital expenditure and inventory All items of capital expenditure and inventory are charged as the Project's expenses when transactions are completed and related supporting documents have been approved by the Project management. 21 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 4. CONTRIBUTION FROM THE INTERNATIONAL DEVELOPMENT ASSOCIATION ("IDA") AND THE Global Environment Facility ("GEF") 4.1 Contributions received from IDA as reported by the Project Amount received by the Project intermediary banks charges Total contribution as per designated account USD VND equivalent USD VND equivalent USD Equivalent VND Accumulated as at 31 December 2017 74,409,421 1,629,505,332,929 4,526 98,044,226 74,413,947 1,629,603,377,155 Increase during the year Contribution from IDA through designated account 14,276,415 326,698,778,168 673 15,405,269 14,277,088 326,714,183,437 PCU 1,520,866 34,705,416,917 30 688,800 1,520,896 34,706,105,717 Thanh Hoa 465,386 10,498,506,677 40 903,640 465,426 10,499,410,317 Nghe An 332,764 7,551,032,342 20 469,340 332,784 7,551,501,682 Ha Tinh 583,372 13,199,789,271 8 181,092 583,380 13,199,970,363 Binh Dinh 1,071,529 24,598,920,281 80 1,841,450 1,071,609 24,600,761,731 Phu Yen 404,229 9,085,683,090 40 901,360 404,269 9,086,584,450 Khanh Hoa 1,149,788 26,056,474,970 20 459,060 1,149,808 26,056,934,030 Ca Mau 2,027,983 46,598,131,243 24 551,244 2,028,007 46,598,682,487 Soc Trang 3,619,759 83,660,080,129 50 1,150,700 3,619,809 83,661,230,829 Ninh Thuan 3,100,739 70,744,743,248 361 8,258,583 3,101,100 70,753,001,831 Contribution by direct payment from IDA 2,436,693 55,277,206,961 - - 2,436,693 55,277,206,961 PCU - . Thanh Hoa Nghe An 752,242 17,087,417,000 - - 752,242 17,087,417,000 Ha Tinh 300,229 6,832,973,000 - - 300,229 6,832,973,000 Binh Dinh - . Phu Yen . - Khanh Hoa 511,260 11,629,423,961 - - 511,260 11,629,423,961 Ca Mau 176,819 4,000,000,000 - - 176,819 4,000,000,000 Soc Trang 696,143 15,727,393,000 - - 696,143 15,727,393,000 Ninh Thuan - - - Decrease during the year Adjustment of capital reduction according to work settlement - (152,582,600) - - - (152,582,600) Total Contribution for the period from 01/01/2018 to 31/0712019 16,713,108 381,823,402,529 673 15,405,269 16,713,781 381,838,807,798 Accumulated as at 31 July 2019 91,122,529 2,011,328,735,458 5,199 113,449,495 91,127,728 2,011,442,184,953 Notes to the financial statements should are an integral part of the financial statements 22 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 4. CONTRIBUTION FROM THE INTERNATIONAL DEVELOPMENT ASSOCIATION ("IDA") AND THE GLOBAL ENVIRONMENT FACILITY ("GEF") (continued) 4.2 Contributions received from GEF as reported by the Project Amount received by the Intermediary bank's Project as per designated chargesTotal contribution account USD VND equivalent USD VND USD Equivalent equivalent VND Accumulated as at 31 December 2017 2,643,227 57,284,959,251 841 18,261,228 2,644,068 57,303,220,479 Increase during the year Contribution from GEF through designated account 3,816,353 87,460,214,403 506 11,592,584 3,816,859 87,471,806,987 PCU 216,166 4,961,784,817 30 688,800 216,196 4,962,473,617 Thanh Hoa 618,590 14,063,023,128 40 912,000 618,630 14,063,935,128 Nghe An 201,036 4,576,109,110 30 697,290 201,066 4,576,806,400 Ha Tinh 149,063 3,412,052,070 4 91,560 149,067 3,412,143,630 Binh Dinh 427,576 9,817,211,206 60 1,379,950 427,636 9,818,591,156 Phu Yen 499,662 11,374,826,071 240 5,466,060 499,902 11,380,292,131 Khanh Hoa 471,249 10,719,548,297 20 459,060 471,269 10,720,007,357 Ca Mau 431,252 9,942,871,556 12 277,164 431,264 9,943,148,720 Soc Trang 801,759 18,592,788,148 70 1,620,700 801,829 18,594,408,848 Ninh Thuan - - - - Contribution by direct payment from GEF - - - - Total Contribution for the period from 01/01/2018 to 31/0712019 3,816,353 87,460,214,403 506 11,592,584 3,816,859 87,471,806,987 Accumulated as at 31 July 2019 6,459,580 144,745,173,654 1,347 29,853,812 6,460,927 144,775,027,466 Notes to the financial statements should are an integral part of the financial statements 23 WWWW NWRMWu manmmWW W Wog mmommagagagagnag THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 4. CONTRIBUTION FROM THE INTERNATIONAL DEVELOPMENT ASSOCIATION ("IDA") AND THE GLOBAL ENVIRONMENT FACILITY ("GEF") (continued) 4.3 Reconciliation of contribution received from IDA and GEF For the period Accumulated for the period from 01 January 2018 to 31 July 2019 from 9 August 2012 to 31 July 2019 USD VND equivalent USD VND equivalent Contribution from IDA and GEF 20,530,640 469,463,197,385 97,588,655 2,156,217,212,419 In which: Amount received from IDA through designated account 14,276,415 326,698,778,168 72,726,148 1,605,296,718,132 Amount received from IDA through directly payment to suppliers 2,436,693 55,277,206,961 18,396,380 406,032,017,326 Amount received from GEF through designated account 3,816,353 87,460,214,403 6,459,580 144,745,173,654 Intermediary bank's charges 1,179 26,997,853 6,546 143,303,307 Addition: Amount claimed and not yet received - - 2,060,885 46,581,179,791 Decreased ceiling amount of designated account 9,311,857 221,101,912,799 14,236,580 331,592,212,103 Deductions: Amount claimed in previous year but disbursed in current year 1,309,588 27,931,277,121 1,416,387 30,313,196,121 Foreign exchange difference - (9,221,850,989) - (4,751,484,667) Total amounts contributed by IDA and GEF as per Statement of Withdrawals 28,532,908 653,411,982,074 112,469,731 2,499,325,923,525 Notes to the financial statements should are an integral part of the financial statements 24 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of 01/01/2018 to 31/07/2019 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ('WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 5. CONTRIBUTION FROM THE GOVERNMENT OF VIETNAM Currency: VND For the period from Accumulated for the period 01101/2018 to 3110712019 from 09108/2012 to 3110712019 PCU 3,547,792,247 11,660,399,363 Thanh Hoa 4,272,290,000 28,298,088,600 Nghe An 3,755,000,000 27,531,426,937 Ha Tinh 3,279,316,696 12,583,791,750 Binh Dinh 2,700,231,349 16,402,877,349 Phu Yen 3,155,151,018 18,520,424,519 Khanh Hoa 14,845,171,869 29,282,296,381 Ca Mau 7,631,051,362 25,356,182,161 Soc Trang 8,780,633,678 29,531,177,672 Ninh Thuan 10,000,000,000 13,185,000,000 TOTAL 61,966,638,219 212,351,664,732 Notes to the financial statements should are an integral part of the financial statements 25 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 6. EXPENDITURE 6.1. Expenditure by categories and source of funds Currency: VND For the period from 01101/2018 to 3110712019 Accumulated for the period from 09/08/2012 to 31/07/2019 Components Financed by the Financed by the Financed by IDA Financed by Government of Total Financed by IDA Financd by Government of Total Vietnam Vietnam Institutional Capacity Strengthening for Sustainable Fishery 4,412,027,000 7,024,226,000 - 11436,255,000 40,232,853,475 21480,949,501 - 61,713,802,976 Management Good Practices for Sustainable Aquaculture 125,625,851,417 233,800,000 19,096,852,991 144,956,504,408 813,372,397,503 605,381,000 69,726,867,418 883,704,645,921 Sustainable Management of Near-Shore Capture Fisheries 207,026,114,547 55,599,198,354 9,994,183,399 272,619,496,300 1,032,351,339,619 112,139,065,419 67,785,385,419 1,212,275,790,457 Project Management, Monitoring and Evaluation 4,791,064,671 688,800 21,375,226,946 26,166,980,417 131,601,930,124 688,800 68,629,539,339 200,232,158,263 Total 341,855,057,635 62,857,915,154 50,466,263,336 455,179,236,125 2,017,558,520,721 134,226,084,720 206,141,792,176 2,357,926,397,617 6.2. Actual expenditure vs budget comparison Currency: VND For the period from 01/01/2018 to 31/0712019 Actual expenditure for the Bde o h eidfo period from 01/01/2018 to Bu0dgt f/o t o d f/12r0 Difference % 31107/2019 Institutional Capacity Strengthening for Sustainable Fishery Management 11,436,255,000 22,842,000,000 (11,405,745,000) -49.9% Good Practices for Sustainable Aquaculture 144,956,504,408 162,360,501,000 (17,403,996,592) -10.7% Sustainable Management of Near-Shore Capture Fisheries 272,619,496,300 292,351,514,000 (19,732,017,700) -6.7% Project Management, Monitoring and Evaluation 26,166,980,417 34,205,505,000 (8,038,524,583) -23.5% Total 455,179,236,125 511,759,520,000 (56,580,283,875) -11.1% Notes to the financial statements should are an integral part of the financial statements 26 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 01/01/2018 to 31/07/2019 Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 7. CASH Currency: VND As at 3110712019 PCU Thanh Hoa Nghe An Ha Tinh Binh Dinh Phu Yen Khanh Hoa Ca Mau Soc Trang Ninh Thuan Total Cash at banks 4,650,878,049 2,374,285,764 4,835,242,438 479,980,208 2,403,775,698 1,388,187,332 1,106,254,322 7,933,762,219 1,125,168,021 5,043,037,918 31,340,571,969 Designated account 3,845,929,976 2,374,285,764 4,277,339,652 479,718,878 - 1,049,134,135 776,768,743 6,272,215,151 916,213,106 30,183,083 20,021,788,488 Other bank account 804,948,073 - 557,902,786 261,330 2,403,775,698 339,053,197 329,485,579 1,661,547,068 208,954,915 5,012,854,835 11,318,783,481 In which: Interest 7,338 - - 261,330 - 261,617 - - 1,234,590 - 1,764,875 income Cash on hand 72,242,626 - 3,053,400 - 1,245,400 612,900 67,952,444 20,000,994 - - 165,107,764 Total 4,723,120,675 2,374,285,764 4,838,295,838 479,980,208 2,405,021,098 1,388,800,232 1,174,206,766 7,953,763,213 1,125,168,021 5,043,037,918 31,505,679,733 Notes to the financial statements should are an integral part of the financial statements 27 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of 01/01/2018 to 31/07/2019 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 8. ADVANCES TO SUPPLIERS Currency: VND PMU As at 31 July 2019 PCU 1,480,395,505 Thanh Hoa - Nghe An 28,407,000 Ha Tinh - Binh Dinh - Phu Yen - Khanh Hoa - Ca Mau 224,812,000 Soc Trang Ninh Thuan - Total 1,733,614,505 9. PAYABLES TO SUPPLIERS Currency: VND PMU As at 31 July 2019 PCU 1,363,471,174 Thanh Hoa Nghe An 1,039,807,780 Ha Tinh 143,433,124 Binh Dinh 2,369,283,000 Phu Yen 198,719,112 Khanh Hoa 414,211,196 Ca Mau 260 Soc Trang - Ninh Thuan 491,189,475 Total 6,020,115,121 Notes to the financial statements should are an integral part of the financial statements 28 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the period from Under the Financing Agreement for Credit No. 5113 - VN between the Government of 01/01/2018 to 31/07/2019 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing-Grant Agreement No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS (CONT'D) 10. OTHER PAYBLES Dan vi tinh: VND PMU As at 31 July 2019 PCU 237,988,495 Thanh Hoa - Nghe An 43,343,000 Ha Tinh - Binh Dinh 111,556,820 Phu Yen - Khanh Hoa - Ca Mau 74,402,782 Soc Trang - Ninh Thuan Total 467,291,097 Pharm Ngoc Sao Chu Ngoc Phu Director Accountant Hanoi, S.R. Vietnam 18 October 2019 Notes to the financial statements should are an integral part of the financial statements 29 PART H1 INDEPENDENT ASSURANCE REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROL 30 yAUDITING AND CONSULTING CO LTD INDEPENDENT ASSURANCE REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROL To: The Management of the Project The Coastal Resources for Sustainable Development Project We have audited the design and operating effectiveness of the internal control of the Coastal Resources for Sustainable Development Project (the "Project") as operated by the management of Project Central Unit ("PCU") and of Ha Tinh Provincial Project Management Unit ("Ha Tinh PPMU"), Thanh Hoa Provincial Project Management Unit ("Thanh Hoa PPMU"), Nghe An Provincial Project Management Unit ("Nghe An PPMU"), Binh Dinh Provincial Project Management Unit ("Binh Dinh PPMU"), Khanh Hoa Provincial Project Management Unit ("Khanh Hoa PPMU"), Phu Yen Provincial Project Management Unit ("Phu Yen PPMU"), Ca Mau Provincial Project Management Unit ("Ca Mau PPMU"), Soc Trang Provincial Project Management Unit ("Soc Trang PPMU"), Ninh Thuan Provincial Project Management Unit ("Ninh Thuan PPMU") (collectively referred to as "the nine PPMUs") which existed for the period from 01/01/2018 to 31/07/2019. The internal control was set up for purpose of managing risks to the achievement of the Project's objectives, including the reasonable prevention and detection of errors, irregularities and fraud. The internal control is the responsibility of the PCU and the nine PPMUs. Auditors' Responsibility Our responsibility is to express an opinion, based on our audit, on the effectiveness of the internal control that could have direct and material financial effect on the combined financial statements of the Project for the period from 01/01/2018 to 31/07/2019. We conducted our audit in accordance with the principles of International Standard on Assurance Engagements 3000 - Assurance Engagements other than Audits of Reviews of Historical Financial Information ("IASE 3000) insofar this standard could be usefully applied in this audit and in its specific compliance context. This standard requires that we comply with ethical requirements and that we plan and perform the audit to obtain reasonable assurance about whether the internal control for the Project is adequately designed for the purpose of the Project and was operating effectively during the period covered by the audit. Our audit included obtaining a sufficient understanding of the Project and the internal control for the Project; assessing the risk that a material weakness exists that could have a direct and material financial effect on the combined financial statements of the Project; testing and evaluating, on the sample basis, the design and operating effectiveness of internal control based on the assessed risk; and performing such other procedures as we considered necessary in the circumstances. We considered the following criteria in evaluating the effectiveness of the internal control: - The requirement for design and implementation of the internal control in the Project's Operational Manual ("POM'"); - The appropriateness of the internal control for the Project's activities and objectives; - The implementation of the internal control by the PCU and the nine PPMUs to achieve its objective of prevention and detection of errors, irregularities and fraud that could have a direct and material financial effect on the combined financial statements of the Projects; - The significance to the combined financial statements where one control or several controls did not operate as designed, if any; and - That a weakness or a deficiency existed where a control or several controls did not reasonably prevent or detect risks that could have an adverse impact on the objectives of those internal controls which are to provide reasonable assurance that the combined financial statements are prepared, in all material respects, in accordance with the adopted accounting policies and POM, that the funds are utilised for the purpose defined in the Financing Agreement between the Government of the Socialist Republic of Vietnam and the International Development Association ("the Financing Agreement") and that the Project complies with the Financing Agreement, POM and other laws and regulations applicable for the Project. We believe that our audit provides a reasonable basis for our opinion. Head Office: 9th Floor. HL Tower, 82 DUy Tan Str., Cau Giay Dist., Hanoi, Vietnam Phone: 84 24.3755 7446 Fax: 84 24.3755 7448 31 www.uhy.vn An independent member of UHY Internationai INDEPENDENT ASSURANCE REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROL (CONT'D) Auditor's Opinion The Project's internal control system of the PCU and the nine PPMUs for the period from 01/01/2018 to 31/07/2019, in all material respects, is sufficiently designed for the Project's purposes and operated in an effective manner, based on the above evaluation criteria. Other Matters We draw attention to Appendix 1 - Management letter dated 18 October 2019; including PCU and the nine PPMUs, in which we discussed findings from the internal control which have no direct and material financial effect on the combined financial statements of the Project but may put system objectives at risk. This audit involved a historical evaluation of internal control at a specific point of time. Thus, this audit does not provide assurance for future periods due to the risk that internal control may become inappropriate because of changes in conditions, or that the degree of compliance with policies or procedures may deteriorate. Nguyen Thi Phuong Thao Nguyen Thi Thu Ha Deputy General Director Auditor Auditor's Practising Certificate No. 0933-2018-112-1 Auditor's Practising Certificate No. 2277-2018-112-1 For and on behalf of UHY AUDITING AND CONSULTING COMPANY LIMITED Hanoi, 18 October 2019 32 PART III INDEPENDENT ASSURANCE REPORT ON COMPLIANCE 33 yAUDITING AND CONSULTING CO LTD INDEPENDENT ASSURANCE REPORT ON COMPLIANCE To: The Management of the Project The Coastal Resources for Sustainable Development Project We have examined the compliance of the managements of the Coastal Resources for Sustainable Development Project (the "Project") including the management of the Project Central Unit ("PCU"); Ha Tinh Provincial Project Management Unit ("Ha Tinh PPMU"), Thanh Hoa Provincial Project Management Unit ("Thanh Hoa PPMU"), Nghe An Provincial Project Management Unit ("Nghe An PPMU"), Binh Dinh Provincial Project Management Unit ("Binh Dinh PPMU"), Khanh Hoa Provincial Project Management Unit ("Khanh Hoa PPMU"), Phu Yen Provincial Project Management Unit ("Phu Yen PPMU"), Ca Mau Provincial Project Management Unit ("Ca Mau PPMU"),Soc Trang Provincial Project Management Unit ("SocTrang PPMU"), Ninh Thuan Provincial Project Management Unit ("Ninh Thuan PPMU") (collectively referred to as "the nine PPMUs) with the applicable laws, regulations, procurement procedures and other provisions of the Financing Agreement between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") ("the Financing Agreement") for the period from 01/01/2018 to 31/07/2019 in accordance with International Standards on Auditing and issued an independent audit report on 30 October 2019 with unqualified opinion. Regarding the audit of financial statements, we also carry out procedures to check the Project's compliance with the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing - Grant Agreement No. TF014293 between the Government of the Socialist Republic of Vietnam and World Bank, laws and regulations, may having a direct and materially significant financial impact on the Project's financial statements for the period from 1 January 2018 to 31 July 2019 (referred to as the "Regulations"). The Project Management Unit is responsible for complying with the Financing Agreement for Credit No. 5113 and Additional Financing No. TF014293, laws and regulations applicable to the Project. Our responsibility is to express our opinion on the Project's compliance with these Regulations based on our testing procedures. We only check the Project's compliance with the above Regulations instead of checking the Project's compliance with all laws and regulations applicable to the Project. We have conducted procedures according to the International Standard on Assurance Engagements (ISAE) 3000. This standard requires us to comply with professional ethics, plan and carry out inspection to achieve reasonable assurance that the Project has complied with the Regulations, in material respects. We have adopted Quality Control Standard No. 1, whereby we maintain a comprehensive quality control system, including the design and retention of policies and procedures related to compliance with professional standards and regulations on professional ethics, professional standards, laws and regulations. We have complied with the requirements of independence and other requirements of professional ethics in accordance with the Standards of Accounting, Auditing, built on basic ethical principles on integrity, objectivity, professional competence and prudence, confidentiality and professional status. The audit involves performing procedures to gather evidence that the Project does not have material non-compliance activities under the Regulations, including understanding the Project's internal control system regarding compliance with the Regulations. The procedures selected based on the auditor's judgment, including the risk assessment of the Project's noncompliance with the Regulations as well as the assessment of noncompliance, may have a direct and material impact on the Financial Statements of the Project. Our procedures also include checking the Project's compliance with the Regulations that we deem necessary to provide reasonable assurance that the Project has complied with the Regulations. We believe that the evidences we have obtained are sufficient and appropriate to provide a basis for our opinion. Head Office: 9th Floor, HL Tower, 82 Duy Tan Str.. Cau Giay Dist., Hanoi, Vietnam Phone: 84 24.3755 7446 Fax: 84 24.3755 7448 34 www.uny.vn An independent member of UHY International INDEPENDENT ASSURANCE REPORT ON COMPLIANCE (CONT'D) Auditor's Opinion In our opinion, the PCU and the nine PPMUs have complied, in all material respects, with regulations of the project that may have a direct and material financial impact on the combined financial statements of the Project as at 31 July 2019 and for the period from 01/01/2018 to 31/07/2019 on the basis of the above evaluation criteria. Other Matters We draw attention to Appendix 1 - Management letter dated 18 October 2019; including PCU and the nine PPMUs, in which we discussed minor departures from the Project's regulations which have no direct and material financial effect on the combined financial statements of the Project but may put the Project's compliance at risk. This examination involved a historical evaluation of the compliance of the Project management and 9 PPMUs with the Project's regulations at a specific point of the time. Thus, this examination does not provide assurance for future periods due to the risk of changes in the Project's regulations, or that the degree of compliance with the Project's regulations, may deteriorate. Nguyen Thi Phuong Thao Nguyen Thi Thu Ha Deputy General Director Auditor Auditor's Practising Certificate No. 0933-2018-112-1 Auditor's Practising Certificate No. 2277-2018-112-1 For and on behalf of UHY AUDITING AND CONSULTING COMPANY LIMITED Hanoi, 18 October 2019 35