S Deloitte. U U U VIETNAM CLIMATE INNOVATION CENTER PROJECT Financing Agreement No. TF 0A1407-VN AUDITED FINANCIAL STATEMENTS AND MANAGEMENT LETTER For the year ended 31 December 2017 208-riU W VIETNAM CLIMATE INNOVATION CENTER PROJECT W Financing Agreement No. TF OA1407-VN U TABLE OF CONTENTS CONTENT PAGE(S) PART I FINANCIAL STATEMENTS Statement of the Project Management Unit 2 Independent Auditors' Report 3-4 Balance sheet 5 Statement of Income and Expenditures 6 Statement of Sources and Uses of funds 7 Statement of Designated Account 8 Statement of Withdrawals 9 Notes to the Financial Statements 10-13 U PART II REPORT OF INDEPENDENT AUDITORS ON INTERNAL 14- 15 CONTROL PART III INDEPENDENT ASSURANCE REPORT ON COMPLIANCE 16 - 17 PARTIV MANAGEMENT LETTER 18-21 U1 . . - . . . . . . . . . ーPART 1 ．一 . FINANCIAL STATEMENTS .f ト 臓王 .- ．で . . . . . . . . . . . . . . . . VIETNAM CLIMATE INNOVATION CENTER PROJECT Financing Agreement No. TF OA1407-VN STATEMENT OF THE PROJECT MANAGEMENT UNIT The Project Management Unit of Vietnam Climate Innovation Center Project (the "Project Management Unit") presents this report together with the financial statements of Vietnam Climate Innovation Center Project (the "Project") - Financing Agreement No. TF OA1407-VN for the year ended 31 December 2017. The Project Management Unit The members of the Project Management Unit of the Project who held office during the year and to the date of this report are as follows: Mr. Pham Duc Nghiem Director Ms. Dang Thi Tuyet Chief Accountant The Project Management Unit's Statement of Responsibility The Project Management Unit is responsible for preparing the financial statements, which comprise the balance sheet as at 31 December 2017, the statement of income and expenditures, the statement of sources and uses of funds, statement of designated account, statement of withdrawals for the year ended 31 December 2017 and the notes to the financial statements, including a summary of significant accounting policies, which give a true and fair view of the financial position of the Project as at 31 December 2017 as well as its income and expenditures, the sources and uses of fundss for the year ended 31 December 2017, in accordance with the accounting convention and the accounting policies set out in Note 2 and Note 3 of the notes to the financial statements and the covenants contained in Financing Agreement No. TF OA1407-VN. In preparing these financial statements, the Project Management Unit is required to: C( " Select suitable accounting policies and then apply them consistently; MCH 0 Make judgments and estimates that are reasonable and prudent; " State whether applicable accounting principles have been followed, subject to any material DE departures disclosed and explained in the financial statements; VIE " Prepare the financial statements on the going concern basis unless it is inappropriate to presume 4, that the Project will continue in operation; and " Design and maintain effective internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as over financial reporting for the purpose of properly preparing and presenting the financial statements so as to minimise errors and frauds; and take responsibility for its assertions as to the effectiveness of such internal control. The Project Management Unit is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the financial position of the Project and that the financial statements are prepared in accordance with the accounting convention and the accounting policies set out in Note 2 and Note 3 of the notes to the financial statements. The Project Management Unit is responsible for using the Project's funds as intended for the Project and for complying with Financing Agreement No. TF OA1407-VN as well as laws and regulations applicable to the Project. The Project Management Unit 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 Project Management Unit confirms that they have complied with the above requirements in preparing these financial statements. BAN of the Project Management Unit, QUAW LY 0 N "6,Tpta Y, 'AT 0 UNG TAM I al X NG )IAO_ PHO T M Pha ... .... Director Hanoi, 26 June 2018 2 Deloitte Vietnam Company Ltd. 15thFloor, Vinaconex Tower, 34 Lang Ha Street, Lang Ha Ward, Dong Da District, Hanoi, Vietnam Tel :+84 24 6288 3568 Fax:+84 24 6288 5678 Website: www.deloitte.com/vn No.: /VN1A-HN-BC INDEPENDENT AUDITORS' REPORT To: The Project Management Unit of Vietnam Climate Innovation Center Project Opinion We have audited the financial statements of Vietnam Climate Innovation Center Project - Financing Agreement No. TF 0A1407-VN (the "Project"), which comprise the balance sheet as at 31 December 2017, the statement of income and expenditures, statement of sources and uses of funds, statement of designated account, statement of withdrawals for the year ended 31 December 2017, and the notes to the financial statements, including a summary of significant accounting policies. In our opinion: * The accompanying financial statements give a true and fair view of the financial position of the Project as at 31 December 2017, and of its income, expenditures, receipts and disbursements for the year then ended in accordance with the accounting convention and the accounting policies set out in Notes 2 and Note 3 of the Notes to the financial statements. * The statement of designated account gives a true and fair view of the balance of the designated account as at 31 December 2017 and the Project's receipts and disbursements via the designated account for the year ended 31 December 2017 in accordance with the relevant covenants of Financing Agreement No. TF 0A1407-VN and prevailing relevant regulations established by the World Bank. * The withdrawal applications were adequately reconciled to the statements of expenditures (SOEs) prepared by the Project Management Unit for the year ended 31 December 2017 and those SOEs were adequately supported. 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 in accordance with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our unmodified opinion. Emphasis of Matter - Basis of Accounting We draw attention to Note 2 and Note 3 of the Notes to the financial statements, which describes the accounting convention and the summary of the significant accounting policies. The financial statements are prepared in accordance with the accounting convention and the accounting policies set out in Note 2 and Note 3 of the Notes to the financial statements and the requirements of the Work Bank. As a result, the financial statements may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Responsibilities of Management and those charged with governance for the Financial Statements Management is responsible for the preparation of the financial statements in accordance with the accounting convention and the accounting policies set out in Note 2 and Note 3 of the Notes to the financial statements, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless management either intends to liquidate the Project, or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Project's financial reporting process. Deloitte refers to one or more of Deloitte Touche Tohmatsu Ltd., a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. 3 * Deloitte INDEPENDENT AUDITORS' REPORT (Continued) Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that inculdes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (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 financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going 0 concern. If we conclude that a material uncertainty exists, we are required to draw attention in 01 our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Project to cease to continue as a going concern. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates, if any, and related disclosures made by management. We communicate with those charged with governance and the Project Management Unit regarding, among other matters, the planned scope and timing of the audit and significant audit findings, * significant deficiencies in internal control that we identify during our audit. VoTACIEMAIN DA -T1? Dang i Dung Nguy Anh Tuan Deputy General Director Audi r Audit Practising Registration Certificate Audit Practising Registration Certificate No. 0030-2018-001-1 No. 1472-2018-001-1 DELOITTE VIETNAM COMPANY LIMITED 26 June 2018 Hanoi, S.R. Vietnam 4 VIETNAM CLIMATE INNOVATION CENTER PROJECT Financial Statements Financing Agreement No. TF OA1407-VN For the ended 31 December 2017 BALANCE SHEET As at 31 December 2017 Notes Closing balance Opening balance VND VND ASSETS Current assets Cash 5 984,038,502 2,487,595,290 Advances to supplier 6 - 162,500,000 Advances to sub-projects 7 8,749,774,090 6,853,210,390 Other receivables 603,309,887 Total assets 10,337,122,479 9,503,305,680 LIABILITIES Current liabilities Payables to suppliers 8 - 276,478,793 Payables to employees 472,876,855 177,436,855 Taxes and amounts payable to the State budget 56,873,085 - Other payables 9 115,729,444 1,029,821 Total liabilities 645,479,384 454,945,469 NET ASSETS 9,691,643,095 9,048,360,211 Surplus of income over expenditures 9,574,180,691 8,948,467,362 Foreign exchange differences 117,462,404 99,892,849 TOTAL 9,691,643,095 9,048,360,211 OFF BALANCE SHEET ITEMS Closing balance Opening balance USD USD Designated Account 33,312.78 88,533.14 33,312.78 88,533.14 +oBAN Do Minh Vui Dang Thi Tuyetg Preparer Chief Accountant 26 June 2018 The accompanying notes are an integral part of these financial statements 5 U VIETNAM CLIMATE INNOVATION CENTER PROJECT Financial Statements Financing Agreement No. TF 0A1407-VN For the year ended 31 December 2017 STATEMENT OF INCOME AND EXPENDITURES For the year ended 31 December 2017 Accumulated Notes Current year to3l/12/2017 INCOME VND VND Funds received from the World Bank 10 11,552,307,624 29,258,225,132 Counterpart fund 2,576,014,438 5,961,791,682 TOTAL INCOME 14,128,322,062 35,220,016,814 EXPENDITURES Part 1 - Establishment and Operation of the VCIC 10,228,949,843 20,290,471,916 Part 2 - Climate Technology Business Incubation Services, Including Sub-grants to Companies Part 3 - E-portal, Database and Business Support Services TOTAL EXPENDITURES 13,502,608,733 25,645,836,123 SURPLUS OF INCOME OVER EXPENDITURES 625,713,329 9,574,180,691 '~BAN U~g - LY OANl _N 0 TRUNGT U SiNGT - Do Minh Vui Dang Thi Tuyet P ghiem Preparer Chief Accountant 26 June 2018 The accompanying notes are an integral part of these financial statements 6 • 〔：化〕〕 • •一 VIETNAM CLIMATE INNOVATION CENTER PROIECT Financial Statements Financing Agreement No. TF OA1407-VN For the year ended 31 December 2017 STATEMENT OF DESIGNATED ACCOUNT For the year ended : 31 December2017 Account Number : 110-01 -37-000325-71USD Depository Bank : Vietnam Maritime Commercial Joint Stock Bank - Head Office VID Tower, 115 Tran Hung Dao street, Cua Nam ward, Address : Hoan Kiem district, Ha Noi Financing Agreement No. : TF OA1407-VN dated 05 November 2015 Currency unit : USD PART A - ACCOUNT ACTIVITY Amount Opening balance 88,533.14 Add: - Total amount replenished by the World Bank in the year 526,169.12 - Bank charges 30.00 Deduct: - Total amount withdrawn 563,950.41 - Refund of amount double claimed in the prior year (Refund application No. 0004) 17,469.07 Closing balance 33,312.78 PART B - ACCOUNT RECONCILIATION 1. Amount advanced by the World Bank 450,000.00 2. Add: Total amount advanced by the World Bank in the year - Present outstanding amount advanced to Designated Account as at 31 December 3. 2017 450,000.00 4. Closing balance of Designated Account as at 31 December 2017 33,312.78 5. Add: Amount claimed but not yet accepted 389,740.55 (Withdrawal application No. 0006 and No. 0007) 6. Add: Amount withdrawn but not yet claimed 44,3 32.74 7. Add: Over-sea remmitance charges 110.00 8. Deduct: Refund of amount double claimed refund in the prior year (Refund application No. 0004) 17,469.07 9. Deduct: Amount double claimed which have not been refunded 27.00 10. Total advance to Designated Account accounted for as 450,000.00 at 31 December 2017 SOEs attached to Withdraw Applications No. 0002 and No.0003 which were accepted for disbursement by the World Bank on 28 October 2016 and 27 April 2017, respectively, both comprised the payment on 5 October 2016 for the subproject implemented by MAWAPO JSC with the amount of VND 389,637,500 (equivalent to USD 17,496.07). The Project Management Unit has prepared Refund Application No. 0004 dated 12 July 2017 to return USD 17 469..V..Ai6i'hP. World Bank, which was accepted on 31 July 2017 and remained USD 27, which have not ided. 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GENERAL INFORMATION Vi etnam Climate Innovation Center Project (the "Project") is implemented under the Financing Agreement No. TF OA1407-VN dated 05 November 2015 (effective form 15 December 2015) between the World Bank and the Government of Socialist Republic of Vietnam. The Project follows the initiative of the World Bank's Climate Change Adaptation Technology Development Program and is supported by the British government and the Australian government, managed by the World Bank, and implemented by the Government of Vietnam through the Ministry of Science and Technology - National Agency for Technology Entrepreneuship and Commercializtion Development. The objective of the Project is to increase green growth business innovations by supporting entrepreneurs and SMEs involved in developing technological solutions through the establishment and operation of the Vietnam Climate Innovation Center ("VCIC"). The Project consists of three main following parts: Part 1: VCIC establishment and participation in policies dialogue, including activities: Do activities to establish the VCIC, support the improvement of related policies, promote public- private partnership in the field of climate technology innovation and establish business incubation and commercialization of technology fund Part 2: Enterprise incubation and technology commercialization services, including activities: Develop the idea of clean technology startup (incubate ideas and organize contests); Service of training, supporting, connection and promotion of investment, and support for commercialization through contests and awards (the "Su b- Project"). Part 3: E-portal, database and business support services, including activities: Build the portal; Set up technology database; Seek market opportunities, businesses and experts on climate change; Exploit and effectively use these databases. The Project funds include-. USD equivalent - ODA fund that the World Bank committed to donor 3,800,000 - Vietnamese's Government's counterpart fund 380,000 Total 4,180,000 The Project officially came into operation since 05 October 2015 and is expected to complete on 31 December 2018. 2. ACCOUNTING CONVENTION AND FINANCIAL YEAR Accounting convention The accompanying financial statements, prepared under the historical cost convention, are expressed in Vietnam Dong (VND), except for the statement of designated account and statement of withdrawals which are expressed in original currencies. These financial statements are prepared on the going concern basis, in accordance with the accounting policies set out in Note 3 of the notes to the financial statements and requirements of the World Bank. 10 VIETNAM CLIMATE INNOVATION CENTER PROJECT Financial Statements Financing Agreement No. TF 0A1407-VN For the year ended 31 December 2017 NOTES TO THE FINANCIAL STATEMENTS (Continued) Financial year The Project's financial year begins on 01 January and ends on 31 December. These financial statement are prepared for the financial year ended 31 December 2017. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies, which have been adopted by the management in the preparation of these financial statements, are as follows: Recognition of funds and expenditures Funds: - Funds received from the World Bank are recorded when remittances are made into Designated Account. - Counterpart funds are recorded when payments are made directly from the Vietnamese's Government to contractors/suppliers of the Project or funds are remitted to the Project Management Unit to pay for the Project's activities. Expenditures: - Expendiures are recorded when incurred. Foreign currency translation Funds received from the World Bank in the foreign currency is translated into VND at the exchange rate announced by the Vietnam Maritime Conmmercial Joint Stock Bank at the date of remittance made into the Designated Account. Transactions in foreign currencies are translated to VND at the exchange rate of Vietnam Maritime Commercial Joint Stock Bank at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are revalued at the buying exchange rate of Vietnam Maritime Commercial Joint Stock Bank (as at 31 December 2016: exchange rate announced by the State Bank of Vietnam at the balance sheet date). All exchange differences arising from these transactions are recorded into exchange rate difference account. 4. DESIGNATED ACCOUNT Designated account under Financing Agreement No. TF 0A1407-VN is deposit account in USD opened at the Vietnam Maritime Commercial Joint Stock Bank for implementation of the Project's activities. Payments out of the designated account are for expenditures in accordance with the relevant covenants of Financing Agreement No. TF 0A1407-VN and relevant regulations established by the World Bank. Interest of the Designated Account is considered as receipts of the State Budget and initially recorded as other funds in Statement of income and expenditures, Statement of sources and uses of funds and used to cover bank charges. At the end of the Project, outstanding interests will be returned to the Vietnamese Government. 11 VIETNAM CLIMATE INNOVATION CENTER PROJECT Financial Statements Financing Agreement No. TF OA1407-VN For the year ended 31 December 2017 NOTES TO THE FINANCIAL STATEMENTS (Continued) 5. CASH Closing balance Opening balance VND VND Cash on hand 221,504,718 308,121,800 Bank demand deposit 762,533,784 2,179,473,490 984,038,502 2,487,595,290 6. ADVANCE TO SUPPLIER Closing balance Opening balance VND VND Trading Software Solution JSC - 162,500,000 - 162,500,000 7. ADVANCE TO SUB-PROJECTS Closing balance Opening balance VND VND Micro Technology and Environment JSC 1,302,502,500 1,013,057,500 Viet Linh Bamboo Processing Enterprise 779,275,000 779,275,000 Institute of Technologies and Education Develop 701,347,500 545,492,500 N Phuong Nam Biotechnology Co., Ltd. 701,347,500 545,492,500 H Vietnam Eco Solutions Co., Ltd. 701,342,550 545,488,650 .0 Pham Gia Trade and Technology Co., Ltd. 621,975,000 - T Ho Hoan Cau Co., Ltd. 610,151,760 476,562,480 S3 Technology, JSC 453,613,000 - - MAWAPO 3SC 389,637,500 389,637,500 Vietnam Food Hau Giang, JSC 357,525,000 - Elegance Co., Ltd. 311,710,000 311,710,000 Quang Tri Trading Co., Ltd. 300,577,500 233,782,500 Solar Serve Center Enterprise 300,576,020 233,782,500 Sao Mol Technology Co., Ltd. 280,917,000 - Dichung, JSC 233,738,260 233,738,260 Tue Minh Commercial and Technology Co., Ltd. 222,614,000 155,855,000 Solar ESCO, JSC 133,590,000 133,590,000 Lam An Investment, 3SC 133,590,000 106,872,000 Green Street Enterprise 106,872,000 106,872,000 I-Nature Co., Ltd. 106,872,000 106,872,000 Skyfarm, 3SC - 935,130,000 8,749,774,090 6,853,210,390 U 12 VIETNAM CLIMATE INNOVATION CENTER PROJECT Financial Statements Financing Agreement No. TF OA1407-VN For the year ended 31 December 2017 NOTES TO THE FINANCIAL STATEMENTS (Continued) 8. PAYABLES TO SUPPLIERS Closing balance Opening balance VND VND SS4U Software JSC - 52,700,000 Truong An-VIWASEEN Invest and Construction ISC - 68,700,000 Ha Phuong General Trading Co., Ltd. - 36,457,413 Other suppliers - 118,621,380 - 276,478,793 9. OTHER PAYABLES Closing balance Opening balance Salary payables to experts 105,850,800 - Social insurance 6,630,000 - Health insurance 1,170,000 - Union fee 696,960 - Other payables (not relating to expenses) 1,381,684 1,029,821 115,729,444 1,029,821 10. FUNDS RECEIVED FROM THE WORLD BANK Current year Accumulated to 31 December 2017 USD VND USD VND equivalent equivalent Advance - 450,000.00 10,019,250,000 Replenishment to designated account 526,169.12 11,941,945,124 871,172.15 19,628,612,632 Refund of amount double claimed in (17,469.07) (389,637,500) (17,469.07) (389,637,500) the prior year * ~ ~~~~~(Refund application No. 0004) _________________________________ 508,700.05 11,552,307,624 1,303,703.08 29,258,225,132 Do Minh Vui Dang Thi Tuyet a hiem Preparer Chief Accountant ekt 26 June 2018 13 U U U U U U U U U U U PART II REPORT OF INDEPENDENT AUDITORS ON * INTERNAL CONTROL U * 00 U Th * ~TI AA' * U U U U U U U U U U U U U U U Deloitte Vietnam Company Ltd. 15thFloor, Vinaconex Tower, 34 Lang Ha Street, Lang Ha Ward, Dong Da District, Hanoi, Vietnam Tel :+84 24 6288 3568 Fax:+84 24 6288 5678 Website: www.deloitte.com/vn REPORT OF INDEPENDENT AUDITORS ON INTERNAL CONTROL To: The Project Management Unit of Vietnam Climate Innovation Center Project We have audited, in accordance with International Standards on Auditing, the financial statements of Vietnam Climate Innovation Center Project - Financing Agreement No. TF 0A1407-VN (the "Project") for the year ended 31 December 2017 and issued the independent auditors' report thereon dated 26 June 2018 expressing an unmodified opinion on those financial statements relating to sime statements of expenditures. In connection with our audit of the Project's financial statements, we also examined the effectiveness of internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as of internal control over financial reporting. As stated in the Statement of the Project Management Unit on page 2, the Project Management Unit is responsible for designing and maintaining effective internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as over financial reporting for the purpose of properly preparing and presenting the financial statements so as to minimise errors and frauds; and take responsibility for its assertions as to the effectiveness of such internal control. Our responsibility is to express an opinion on the effectiveness of internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as internal control over financial reporting based on our examination. Our examination was conducted in accordance with International Standard on Assurance Engagements (ISAE) 3000. That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project Management Unit has maintained effective internal control over compliance with the requirements that could have a direct and material financial effect on the financial statements as well as internal control over financial reporting. Our examination included obtaining an understanding of internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as of internal control over financial reporting, testing, and evaluating the design and operating effectiveness of the internal control, and performing such other procedures as we considered necessary in the circumstances to obtain sufficient appropriate evidence on which to base our opinion. Because of inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not to be detected. Also, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. U Deloitte refers to one or more of Deloitte Touche Tohmatsu Ltd., a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. U 14 U Deloitte REPORT OF INDEPENDENT AUDITORS ON INTERNAL CONTROL (Continued) Opinion In our opinion, the Project Management Unit has maintained, in all material respects, effective internal control over compliance with requirements that could have a direct and material financial effect on the Project's financial statements as well as over financial reporting for the year ended 31 Dece. 112500 . CONG D TE e AM Dan ' "g Nguy Anh Tuan Deputy General Director Auditdr Audit Practising Registration Certificate Audit Practising Registration Certificate No. 0030-2018-001-1 No. 1472-2018-001-1 DELOITTE VIETNAM COMPANY LIMITED 26 June 2018 Hanoi, S.R. Vietnam 15A U U U U U U U U U U U U U PART III * INDEPENDENT ASSURANCE REPORT ON COMPLIANCE U / U / * U N U U U U U U U U U U U U U U U W Deloitte Vietnam Company Ltd. 5thFloor, Vinaconex Tower, SD elo itte. 34 Lang Ha Street, Lang Ha Ward, Dong Da District, Hanoi, Vietnam Tel :+84 24 6288 3568 Fax:+84 24 6288 5678 Website: www.deloitte.com/vn INDEPENDENT ASSURANCE REPORT ON COMPLIANCE To: The Project Management Unit of Vietnam Climate Innovation Center Project We have audited, in accordance with International Standards on Auditing, the financial statements of Vietnam Climate Innovation Center Project - Financing Agreement No. TF 0A1407-VN (the "Project") for the year ended 31 December 2017 and issued the independent auditors' report thereon dated 26 June 2018 expressing an unmodified opinion on those financial statements relating to some statements of expenditures. In connection with the audit of the financial statements, we also performed procedures on the Project's compliance with Financing Agreement No. TF 0A1407-VN, laws and regulations that have a direct and material financial effect on the Project's financial statements for the year ended 31 December 2017 (the "requirements"). The Project Management Unit is responsible for complying with Financing Agreement No. TF 0A1407- VN, laws and regulations applicable to the Project. Our responsibility is to express an opinion on the Project's compliance with the requirements based on our procedures. We limited our tests of compliance to the requirements, and we did not test compliance with all laws and regulations applicable to the Project. We performed our work in accordance with International Standard on Assurance Engagements (ISAE) A 3000. That standard requires that we comply with ethical requirements and plan and perform our ) procedures to obtain reasonable assurance about whether, in all material respects, the Project has complied with the requirements. An assurance engagement to report on the compliance with the requirements at the Project involves performing procedures to obtain evidence about whether the Project's activities are free of material noncompliance with the requirements, including obtaining an understanding of the internal control relevant to the Project's compliance with the requirements. The procedures selected depend on the auditors' judgment, including the assessment of risks that the Project does not comply with the requirements and whether such noncompliance could have a direct and material financial effect on the Project's financial statements. Our procedures included testing the compliance with the requirements that we consider necessary to provide reasonable assurance that the requirements are complied by the Project. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. U Deloitte refers to one or more of Deloitte Touche Tohmatsu Ltd., a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms. 16 . Deloitte INDEPENDENT ASSURANCE REPORT ON COMPLIANCE (Continued) Opinion In our opinion, the Project has complied, in all material respects, with Financing Agreement No. TF 0A1407-VN, laws and regulations that could have a direct and material financial effect on the Project's financial statements for the year ended 31 December 2017. ,501250o. iTRACH NHI Ns DE E 5?0 AM D abqhi;Fn g Ngten Anh Tuan Deputy General Director Au itor Audit Practising Registration Certificate Audit Practising Registration Certificate No. 0030-2018-001-1 No. 1472-2018-001-1 DELOITTE VIETNAM COMPANY LIMITED 26 June 2018 Hanoi, S.R. Vietnam El *1