GrantThornton An instinct for growth State Institution "National Agency of Investment and Privatization" Financial Statements of the Project "Assistance to Privatization" (Grant from the Austrian Trust Fund TFO98603) on receipts and disbursements of funds for the period from 1 January 2018 through 31 December 2018 State Institution "National Agency of Investment and Privatization" 2 Financial statements of the Project "Assistance to Privatization" (Grant from the Austrian Trust Fund TF098603) Contents: Statement of Management's Responsibility 3 Independent Auditors Report 4 Statement of Sources and Use of Funds 7 Statement of Use of Funds by Types of Project's Activities 8 Statement of Withdrawal 10 Statement of Designated Accounts 11 Statement of Transit Accounts 12 G201TalThankaLLC. All ;qlhls reservd State Institution "National Agency of Investment and Privatization" 3 Financial statements of the Project "Assistance to Privatization' (Grant from the Austrian Trust Fund TF098603) Statement of Managements Responsibty The Management of State Institut[on 'National Agency of Investment and Privatization" (hereinafter - the Company) is responsible for preparing the financial statements of the Project "Assistance to Privatization" (hereinafter -the financial statements of the Project). The financial statements on pages 7 to 12 represent fairly information on uses of funds of the Project "Assistance to Privatization" for the period from 1 January 2018 through 31 December 2018- The Management of the Company confirms that appropriate accounting policies have been used and applied consistently. Reasonable and prudent judgments and estimates have been made in the preparation of the financial statements of the Project. The Management of the Company is responsible for keeping proper accounting records, for detecting and preventing fraud and errors, as well as for designing, implementing and maintaining effective and reliable internal controls. Signed on behalf of the Management by: Denis Meleshkin Mikhalina Arnatovich Acting Director Financial Specialist 2aIr 17 JIdW Py4 GrantThornton 2I Ot 2of(5 No. o&9Th_ s Grant Thornton LLC Pet No -__ _ dated 103, Pobeditelei Av. Office 507,220020, Minsk, Republic of Belarus UNP 100024856, OKPO 37384691 To the Management of State Institution Account: BY89 ALFA 3012272388001027000 "Notional Agencq of Investment and Privatization" at Alfabank CJSO, Code ALFABY2X Bank Address: 43-47, Surganovo ul., Minsk, 1+37517 308 7081(82) e-mail; info@by.gtccorn weww.gra nttherrntomn.b I4 Independhent Auditor's Repor Auditor's Opinion We have audited the financial statements of the Project 'Assistance to Privatization" (hereinafter -the financial statements of the Project) financed by International Bank for Reconstruction and Development (IBRD") under the Agreement as of 21 December 2010 signed between the Republic of Belarus and IBRD ("the Agreement") for the period from 1 January 2018 through 31 December 2018. The financial statements of the Project comprise the following statements: * Statement of Sources and Use of Funds; * Statement of Use of Funds by Types of Project's Activities; * Statement of Withdrawal; I* Statement of Designated Accounts; * Statement of Transit Accounts. In our opinlon, the financial statements present fairly receipts and disbursements of the Project funds as of 31 December 2018 as well as use of the Project funds for the period from 1 January 2018 through 31 December 2018 in compliance with IPSAS and IBRD principles. The attracted funds have been used according to requirements of terms and provisions of the Agreement, financial arrangements, with due consideration to profitability and efficiency, and only for the purposes for which the financing has been provided. -ont Thornon §LC i .,s fembere&frantTh.man Intematonal network.Tho rrianiber&rms are n worldwide portneshpGTILn ndmah ard do not obl.-iga , ore or -ther yrd are not liable ftr one anoher's cts or omission. gr ntthornton.by GrantThornton Recording and storage of necessary supporting documents, accounting data and accounts on all the Project transactions, including those relating to the expenses presented in the Statement of Withdrawal, are adequately implemented. There is an interrelation between the accounting data and financial statements which IBRD provide. Basis for Auditor's Opinion We have conducted our audit in compliance with the requirements of International Standards on Auditing (ISA) and the corresponding guidance from the World Bank- Our responsibility in compliance with these standards is described below in paragraph "Auditor's Responsibility for the Audit of the Financial Statements" of the present report. We are independent of State Institution 'National Agency of Investment and Privatization" in compliance with the requirements of the Code of Ethics for Professional Accountants of the International Ethics Standards Board for Accountants, and we have complied with our other ethical duties in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Restriction on Distribution and Use This report is intended solely for the use by State Institution "National Agency of Investment and Privatization' for presenting information on the funds received and used upon the Project to IBRD. Consequently, these financial statements are not intended for other purposes. Our opinion has been prepared solely for IBRD and shall not be distributed or used by third parties, Other Matters The financial statements of the Project for the year ended 31 December 2017 were audited by FBK-Bel LLC. An unmodified opinion No. 05-01150 dated 20 April 2018 was issued in respect of those financial statements. Statement of Management's Responsibilities The Management is responsible for the preparation of these financial statements in accordance with International Public Sector Accounting Standards (IPSAS) "Financial Reporting Under the Cash Basis of Accounting" prepared by the Public Sector Committee of International Federation of Accountants (IFAC) and the internal control of the Company as the Management determines as necessary to enable the preparation of the financial statements that are free from material misstatement or errors. The financial statements on pages 7 - 12 have been presented in accordance with the terms of the Agreement. Auditor's Responsibility Our goal is to obtain reasonable assurance that the financial statements are free from material misstatements, whether due to fraud or errors, and to issue auditor's report including our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that the audit conducted under International Standards on Auditing always discloses the material misstatement if any present. Misstatements may result from fraud or errors and are considered significant if it can reasonably be assumed that either individually or collectively they may affect the economic decisions of users made on the basis of the present financial statements. Within the framework of our audit conducted under International Standards on Auditing, we apply professional judgment and maintain professional scepticism throughout the audit, In addition, we perform the following: * identify and assess the risks of material misstatement of the financial statements, whether due to fraud or errors; 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 generally may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; t- Q5 ront Tht"4cn UC, NJI rights esnmec GrantThornton J obtain understanding of the internal control system relevant to the audit in order to develop audit procedures appropriate to the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control system; * evaluate the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Management and related disclosures made in statements J* evaluate the overall presentation, structure and content of the financial statements, including the disclosures. Natalya Gvardiyan First Deputy Director of ,, // Grant Thornton LLC Alesya Starovoytova Manager Auditor's entity: Grant Thornton Limited Liability Company; Address: 103 Pobediteley avenue, office 507, Minsk, 220020, Republic of Belarus; Registered by the decision of Minsk Municipal Executive Committee as of 12 July 2013 UNP 100024856 Minsk, Belarus 14 May 2019 J -0 201 4$at. Thorn V LC. AP. rig resomwd, State Institution "National Agency of Investment and Privatization" 7 Financial statements of the Project 'Assistance to Privatization" (Grant from the Austrian Trust Fund TF098603) in US dollars Statement of Sources and Use of Funds Period from 1 January 2018 to Cumulative from 31 December 2018 effectiveness Opening cash balances Designated account - Grant funds 47,142.24 Transit account - Grant funds 20.49 Total opening cash balance 47,162.73 Sources of funds TF098603 500,000,00 4,200,000,00 Others - - Total financing 500,000.00 4,200,000.00 Less: Expenditures by Components Component 1: Provision of Legal Advice and Institutional Capacity Building 286,98540 2,133,11267 Component 2: Privatization Transactions Delivery 14,769.43 1.822,829,93 Total expenditures 301,754.83 3955942.60 Interest earned 393-73 1,744.23 Closing cash balances per bank statements Designated account - IBRD loan 245,667.42 Transit account - Grant funds 134.21 Total closing cash balances 245,801.63 Signed on behalf of the Management by: Denis Meleshkin Mikhalina Amatovich Acting Director Financial Specialist T 2M G ranl -hcmlV.nn .. All id4ls rom,ro8, State Institution "National Agency of Investment and Privatization" 8 Financial statements of the Project "Assistance to Privatization' (Grant from the Austrian Trust Fund TF098603) in US dollars Statement of Use of Funds by Types of Project's Activities Project component/ Subcomponent/Activity Total Amount per 2018 Cumulative to Amount payable at the reporting Total payments procurement plan date date (goodsiservices accepted but still to be made not paid) 1 2 3 4 5 Component 1: Provision of Legal Advice and Institutional Capacity Building 2,240,000.00 286,985.40 2,133,112.67 106,887.33 1.1. Office furniture - 59,659.96 1.2. Training 21,853.46 385,265.41 1.3. Operational expenses 11,652.26 106,100.31 1.4. International Resident Advisor's 91,176.50 1,117,165.48 1.5. Computer and office equipment 1,680.29 75,615.83 1.5 Web-design - 5,697.84 1.7, Communications strategy - 1,089.94 1.8. Legal Advisor 4,525.80 53,533.76 1.9 Concept design and making the promotional video on the investing and privatization potential and opportunities - 47,456.57 2.0 Concept design and making the stand - 40,000.00 2 1 Multi-screen multimedia mobile unit for demonstration of video presentations - 14,906.23 2.2 Services of local consultants 63,86550 101,684.63 2.3 Belarus Investment Forum - 32,705,12 2.4 Development of FDI Strategy for Republic of Belarus 70,305.00 70,305.00 2.5 PPP International Conference 6,883.86 6,883,86 2.6 Consulting Services on design and development of internet portal "Investors Roadmap" 15,042.73 15,042.73 Total Component 1 286,985.40 2,133,112.67 Component 2: Privatization Transactions Delivery 2,360,000.00 14,769.43 1,822,829.93 537,170.07 2.1. Retainer fee for Financial Advisors 9,146.00 1,747,802.11 2.2. Advertisement of the privatizations in appropriate media 5,623.43 75,027.82 Total Component 2 14,769.43 1,822,829.93 Total Project Expenditure 4,600,000.00 301,754.83 3,955,942.60 644,057.40 Signed on behalf of the Management by: Denis Meleshkin , Mikhalina Arnatovich . Acting Director _ Financial Specialist @2019 GrafThorni LLZ All rwps eseread State Institution "National Agency of Investment and Privatization" 9 Financial statements of the Project "Assistance to Privatization" (Grant from the Austrian Trust Fund TF098603) in US dollars © 2019 Gra1 TilYLon LC. All tgIs r ~ d. State Institution "National Agency of Investment and Privatization" 10 Financial statements of the Project 'Assistance to Privatization" (Grant from the Austrian Trust Fund TF098603) in US dollars Statement of Withdrawal Withdrawal Category Date of withdrawal Payment Equivalent is application, No. Currency Amount US dollars 21 DA-A 23 January 2018 USD 500,000,00 500,000.00 500,000.00 Signed on behalf of the Management by: Denis Meleshkin / Mikhalina Amatovich Acting Director Financial Specialist rl -kACan hrOwp LLC. All tlghLtromVEd State Institution "National Agency of Investment and Privatization" Financial statements of the Project "Assistance to Privatization" (Grant from the Austrian Trust Fund TF098603) in US dollars Statement of Designated Accoun s - Opening balance as at I January 2018 47,142.24 Funds provided under the Grant during the period 500,000.00 Agreed expenses paid during the present period 192516,82 Amount of funds transferred to the transit account 108,958,00 Designated account closing balance as at 31 December 2018 carried forward to next period per bank statements 246,667.42 Signed on behalf of the Management by: Denis Meleshkin / Mikhalina Arnatovich Acting Director Financial Specialist C 20'9 Gfan[Thcmmn LLC, All righu resMvewd. State Institution "National Agency of Investment and Privatization" 12 Financial statements of the Project "Assistance to Privatization" (Grant from the Austrian Trust Fund TF098603) in US dollars Statement of Transit Accounts Opening balance as at 1 January 2018 20.49 Funds granted from the special account during the period 108.95&00 Amount of eligible expenses paid during the reporting period 109,238-01 Interest income 393.73 Transit account closing balance as at 31 December 2018 carried forward to next period per bank statements 134.21 Signed on behalf of the Management by: Denis Meleshkin Mikhalina Amatovich , Acting Director Financial Specialist @ 2019 Grant Thrnton [C All rightrs marvd. N unbered, bound and sealed on_1 (/4;res ) pages First Deputy Director Gant Thomni>r I C Natay Grntyar