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 No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") AUDITED COMBINED FINANCIAL STATEMENTS For the year ended 31/12/2016 U U U U U U U U Uue21 * H OSA EORE O UTIAL EEOMN RJC Une h iacn gemn o rdtNo51 V ewe h oeneto h 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 No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("W1B") TABLE OF CONTENTS CONTENTS PAGE(S) Report of the Project management 1 -2 Independent auditor's report on the combined financial statements 3-5 Combined statement of income, expenditure and fund balance 6 Combined statement of designated accounts 7-9 Combined statement of withdrawals 10-18 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 Eppendix 1: Management letter U U U U U U U U U U 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 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 ("the Project Management Unit") presents this report together with the combined financial statements of the Coastal Resources for Sustainable Development Project ("the Project") for the year ended 31/12/2016. 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. Nguyen Quang Chien Deputy Director Mr. Nguyen Quang Bac Deputy 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 31/12/2016 as well as the receipts and disbursements of the Project for the year ended 31/12/2016, in accordance with the accounting policies set out in Note 2 and Note 3 of the Notes to the financial statements and regulation the Financing Agreement for Credit No. IDA5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing 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 1 U 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 No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank COMBINED STATEMENT OF THE PROJECT MANAGEMENT UNIT (Continued) STATEMENT BY THE PROJECT MANAGEMENT The Project management 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 December 2016, the income and expenditure for the year then ended, the balance of designated account as at 31 December 2016 and its movements for the year then ended and the statement of expenditures for the year ended 31 December 2016 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 Government of Vietnam are utilised 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, oc Sao Director Hanoi, S.R. Vietnam 27 June 2017 U2 U U U U U U U 2 U ÿþVH ACA Ltd No. 3V/2017/UHYACA/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 combined statement of income, expenditure and fund balance as at 31 December 2016 and for the year then ended, the combined statement of designated account and the combined statement of expenditures for the year ended 31 December 2016 and the notes thereto ("the financial staternents ") of the Coastal Resources for Sustainable Development (the"Project "). The combined financial statements have been prepared by management using the basis of accounting set out in Note 2 and Note 3 of the Notes to the combined financial statements. In our opinion, in all material respects: - The accompanying combined financial statements have been prepared in accordance with the framework of financial statement preparation and presentation applied in all material respects. - The accompanying combined financial statements give a true and fair view of the balances of assets, liabilities and funds as at 31 December 2016 as well as the receipts and disbursements of the Project for year ended 31/12/2016 in accordance with the accounting policies set out in Note 2 and Note 3 of the Notes to the combined financial statements. - The accompanying Statements of designated account give a true and fair view of the balances of designated account as at 31 December 2016 and the Project's receipts and disbursements via designated account for the year ended 31/12/2016 in accordance with the relevant covenants the Financing Agreement for Credit No. IDA5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("W8"). - The loan withdrawals were reconciled to the Statements of Expenditures (SOEs) prepared by the PMU during the period and those SOEs were adequately supported. - The loan has been used by the PMU for the purpose of the project and complies with the requirements of the Financing Agreement for Credit No. IDA5113 - VN between the Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank. 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 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 ethicat 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. Emphasis of Matter Without modifying our opinion, we draw attention to Note 2 and Note 3 of the Notes to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Project to meet the requirements of the Worid Bank. As a result, the financial statements may not be suitable for another purpose. Head Office: 9th f[cor, HL Buildirg. 82 Duy Tan street Cau Guay district, Hanoi, Vietnam Tel: 4 84 4 3755 7446 * Fax; + 84 4 3755 7448 3 Website: www.uhyaca.vn ' E: contac@tubyaca.vn ' HY Ipnatona, a networl< of independent accountng and consultimg firms INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS (Continued) Other matter The combined financial statements of the project for the year ended 31/12/2015 have been audited by ERNST & YOUNG Viet Nam Limited Ha Noi Branch. They gave an unqualified opinion of this combined financial statement. 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 determines is necessary to enable the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the combined 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 cease operations, or has no realistic alternative but to do so. 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. 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. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures 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 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. U U U U U 4 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS (Continued) 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. aVH A ACA MSDN 0102021062 Nguyen Thi Phuong Thao Dep eral Director Auditor CPA Certificate No. 1022-2014-112-1 CPA Certificate No. 0933-2014-112-1 For and on behalf of UHY ACA CONSULTING AND AUDITING COMPANY LIMITED Member of UHY International * 27 June 2017 Hanoi, S.R. Vietnam U U U U U U U U U U U U U U THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government 31/12/2016 of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing 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 As at 31 December 2016 and for the year ended 31112/2016 Currency: VND Cumulative for Notes For the year ended the period from 9 31 December 2016 August 2012 to 31 December 2016 INCOME Contribution from the International Development 41 245,333,468,309 848,700,402,976 Association through Designated Account Contribution by direct payment from the International 4.1 108,238.222,742 213,737,739,632 Development Association Contribution from the Global Environment Facility 4.2 23,126,557,128 54,615,694,529 Contribution form the Government of Viet Nam 5 39,001,276,561 122,088,965,563 TOTAL INCOME 415,699,524,740 1,239,142,802,700 EXPENDITURE Institutional Capacity Strengthening for Sustainable 7,706,192,400 17,408,013,059 Fishery Management Good Practices for Sustainable Aquaculture 200,780,937,216 476,660,285,051 Sustainable Management of Near-Shore Capture 245,744,575,260 644,438,057,681 Fisheries Project Management, Monitoring and Evaluation 33,139,770,485 133,367,953,652 TOTAL EXPENDITURE 6 487,371,475,361 1,271,874,309,443 (DEFICIT)ISURPLUS OF INCOME OVER (71,871,950,621) (32,731,506,743) EXPENDITURE Foreign exchange differences 4,623,190,308 12,710,287,918 FUND BALANCE AT THE BEGINNING OF THE 47,027,541,488 YEARIPERIOD FUND BALANCE AT THE END OF THE (20,021,218,825) (20,021,218,825) YEAR/PERIOD In which: Cash 7 20,693,189,720 20,693,189,720 Advance for Project's employee 176,475,000 176.475,000 Advance to suppliers 8 37,852,736,476 37,852,736,476 Other receivables 39,664,469 39,664,469 Salary payables to employees (474,407,263) (474,407,263) Payables to suppliers 9 (66,885,045,240) (66,885,045,240) Other payables 10 (11,284,823,695) (11,284,823,695) *Ies and amounts payable to the State budget (139,008,292) (139,008,292) TOTAL (20,021,218,825) (20,021,218,825) BA4101JAN CACODL N Ngoc Sao Chu Ngoc Phu Le Thi Kim Cuc Director Accountant Preparer Hanoi, S.R. Vietnam 27 June 2017 U 6 MEEEMEEgEEaEEEEEEEgEEEEaEEgEg EEE THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No- 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 31/12/2016 Development Association ("IDA") and the Additional Financing 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 December 2016 BALANCE AND MOVEMENTS OF DESIGNATED ACCOUNT Currency: USO Notes PCU Thanh Hoa Nghe An Ha Tinh Binh Dinh Phu Yen Khanh Ca Mau Soc Trang Total Hoa Balance as at 31 December 2015 442,773 367,918 454,615 219,580 248,116 496,117 254,761 74,872 547,599 3,106,351 Add Amount deposited by the International Development 4.3 2,657,996 755,559 604,734 912,072 1,383,773 1,747,683 301,708 1,261,686 1,567,104 11.192,315 Association Amount deposited by the GEF 43 30,407 32.110 128,304 110,809 334,417 204,999 18,941 165,459 26,916 1,052,361 Bank interest - - - - - 15 - - 4 19 Total amount refunded for 1,020 73 - 96 70 1,259 unreasonable expenses Foreign exchange difference - - - - . Deduct Amount withdrawn (3,128.162) (1,155,454) (968,344) (1,115,740) (1,869.928) (2,351,099) (575,131) (1,360,378) (2,060,838) (14,585,074) Bank interest transferred to (26) - - (4) (30) interest account Balance as at 31 December 2016 7 4,034 133 219,382 126,721 96,378 97,689 279 141,735 80,850 767,201 Balance as at 31 December 2016 7 4,034 133 219,382 126,721 96,378 97,689 279 141,735 80,850 767,201 per bank statement 7 *EEEEEEEEEEEEEEEEEEaagaEgEg EE THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 31/12/2016 Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") BALANCE AND MOVEMENTS OF DESIGNATED ACCOUNT (continued) Currency: VND Notes PCu Thanh Hoa Nghe An Ha Tinh Binh Dinh Phu Yen Khanh Hoa Ca Mau Soc Trang Total Balance as at 31 9,909,249,893 8,263,431,767 10,201,562,171 4,929,591,654 5,562,7E0,720 11,130,379,286 5,719,389,670 1,638,940,043 12,293,386,065 69,648,691,269 December 205 Add Amount deposited by 43 58,258,254,143 16.586,755,147 13.240854.975 20,054.535321 30,321,804,446 38,266.664,558 6,611.520.951 27,611,235,976 34,362,184.302 245,313.809.819 the International Development Association Amount deposited by 43 665,599,379 701,610,929 2.824,744,973 2,424,062,032 7,338,702,038 4.520,852,690 414,515,906 3,640,278,876 588,518,579 23,118,885,402 the GEF Bank interest - - - 340.792 - - 84,254 425,046 Total amount 22,633.800 - 1,630.322 - - - - 2.101,248 1,539,520 27,904,890 refunded for unreasonable expenses Foreign exchange 676,384,388 283.394.424 330,671,748 374.316,416 941,014,141 753.567,277 69.920.928 559,252,404 646,240.889 4,534,762,615 difference L)edtic Amount withdrawn ( (69,442,739,509) (25,832,158,025) (21,613,985,968) (24,974.097,905) (41,973,595.540) (52.444,980,429) (12,809.035,252) (30,311,127,500) (45.954,956,900) (325,356.677,028) Bank interest - - - - - - - (84,254) (84,254) transferred to interest account Balance as at 31 7 89,382,094 3,034,242 4,985,478,221 2,808,407,518 2,190,685,805 2,226,824,174 5,312,203 3,140,681,047 1,836,912,455 17,287,717,759 December 2016 Balance as at 31 7 89,382,094 3,034,242 4,985,478,221 2,808,407,518 2,190,685,805 2,226,824,174 6,312,203 3,140,681,047 1,836,912,455 17,287,717,759 December 2016 per bank statement 8 - oo oæe e n m -o -0 D 0 00 <0 ( f - ooæ e WCN o o 888 eZ»o z 66 C0 l C> 0 0 mtk ti 0 00i 0 DS w ~ ~ 4) Q Z) Ct q oý on 0 CD 0 00 0 0 < 5 o U) o0 , LL C. cý :2 0 0 NotW 8 00 0 w- 50 wm 0 0 0 0 - 0 Z 0> 00 i 0 0 0 CC 0 C 0 000 0 C> ru 0 00 0ý (n - S 8 0 C 0 0 tD O>D 0 m o o i- - o E 0 C2I0 0 00~ C5 0 ~n cD C;)i 0j Cd ?0 10 00C E 0ý 0 00 0ý cD tDS 0 w 0 0 co w m 0 c g 0 g 5 0 CO 0 000 C C M 0 -a W Z 800 8 00 z >r z r o -i-CO C C 0 0- - 0+. .C 0 00 0-SS 0 m- o 2 - o u zj M LIJ C 00 0D c;. 00 0- - M n<"0 w w Lc m << É-E-< 0 a) z-C : o U- 8. r E.T >z0> 02, -2 < o -) E o 0 E 0 Ci < L 1 . o . 2. -M I * . 2 3 9 E < L 0 < - < E E 0 : FQ C7 CL =- - 1o '- % u D 0 0 2 w U ,_ - * DO'SW Zm E E8is 8 00 <> w = D z o e - 22 E e> c - C8 < U D _ Oe r "E -' c * -- - 0 .a - - - c t - o u- C 2 I:I I -o cn-t- omI 1Q» -cu *UEEEEEEEEEEEEEEEg ggEEEEEOEMEN THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of 3111212016 the Socialist Republic of Vietnam and the World Bank ('WB") COMBINED STATEMENT OF WITHDRAWALS For the year ended 31 December 2016 Initial withdrawal Institutional Policy sPatical apu lter suti ale coastinc fo Project management OtherT Apphcat,on No. VND__ Vota USs VIND equivalent USs E ent USS VND equivalent USS VND equivalent US5 VND equivalent US$ equivalent USS VND equivalent Accumulated as at 31 December 5,400,000 112,917,193,768 318,055 6,838,525,432 10,585,267 228,103,804,879 15,374,744 329,764,837,011 3,085,361 66,026,606,025 1,053 18,631,894 34,764,480 743,669,599,009 2015 Increase during the Year PCU: Withdrawal Application - - - - - 214.027 4,685,058,691 - 214,027 4,685,058,691 No.16/CPU Withdrawal Application - - - . 204,319 4,467,424,317 - - - 204,319 4,467,424.317 No.19/CPU Withdrawal Application - - - - 135,624 2.977,354,722 - - - 135,624 2,977,354,722 No 22/CPU Withdrawal Application - - 24,810 555,610.304 92.663 2.058,875,063 14,402 321.808,000 200,785 4,473,977.349 332.660 7,410,270,716 No 17PCU Withdrawal Application - . 522 11,592,000 171,974 3.816,347,871 31,294 694,359.900 121.546 2,679,773.302 325,336 7,202,073,073 No 21VPCU Withdrawal Application - - 30.407 660,646.975 - - - - - 30,407 680,646,975 No 04/GEF Withdrawal Application - . - - 1,926,246 42,743,402,956 - - 73,754 1,256,597,044 2,000,000 44,000,000,000 No 23/PCU Sub-total - 55,739 1,247,849,279 2,530,826 56,063,404,929 259,723 5,701,226,591 396,085 8,410,347,695 - - 3,242,373 71,422,828,494 10 THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ("IDA") and the Additional Financing No. TFOJ14293 - VN between the Government of 31/12/20/6 the Socialist Republic of Vietnam and the World Bank ("WB") Iial withdrawal Instflubonal Policy Pracial experience for Pracrcal experience Porectanagement sustainable aquaclture susfainable coasting fihn Pro,ll aa.mn te Total Application No USS USS VqD U ie v v USS equiv USS VND equivalent eq~uiva!ent equivalent eq uivalCent equivalent ______ equivalent e_________ vivatent___ Thanh Hoa Withdrawal Appl:cation 4.768 107,098,000 230,254 5,153.646,000 80,681 1,808,432,000 40,935 915,771,000 356,638 7,984,947,000 No, 06iGERTH WfthdrawalApp!caticnNo20f'H - - - - 42,117 938,093,000 5,319 118.463.000 5,718 127,330,000 53,154 1,183,886,000 WithdrawalAppl:cation No.21/TH - - - - 119,267 2,656,469,000 212.318 4,729,334,000 14,242 317,185,000 345,827 7,703,008,000 Wthdrawal Appl!cation No.22fTH - - 909 20,370,000 - - 31.221 700,035,000 - - 32,130 720,405,000 Sub-total - - 5,677 127,468,000 394,638 8,748,228,000 329,539 7,356,264,000 60,895 1,360,286,000 - - 787,749 17,592,246,000 11 E . 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THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Govemment of 31/12/2016 the Socialist Republic of Vietnam and the World Bank (WB") Initil witolfawl Insitutinal PlicyPractical experience for practical experience for Pmatang etOhr initial withdrawal sttutinalPcy sustainable aquacullure sustainable coasting istring Project management Other Total Application No. U$ eu US VND US$ VND equivalent Us$ e VN US$ VND us$ VND equivalent US$ qivln equivalent ______ eQuivalet ~ ~ euent nt ~equivalent equivalent.U.1N euvln Nghe An Withdrawal Application - - - - - 785,815 17,216.422,000 - - 785,815 17,216,422.000 No.17/NA Withdrawal Application - 2,329 52,258,000 68,507 1,538,694,850 26,275 590,352,356 19,532 438,840,658 116,643 2,620,145,864 No. 18/NA Withdrawal Application - - - - 313,816 6,864.714,000 - -- 313,816 6,664,714,000 No.19/NA Withdrawal Application - - - - - 210.926 4,614,000,000 - - - 210,926 4,614,000.000 No,20/NA Withdrawal Application 31,144 693,388,100 327,254 7.285,449,500 19,378 431,522,692 377,776 8,410.360,292 No.21/NA Withdrawal Application - - - - - - 283,023 8.191,136,000 - - - - 283.023 6,191,136,000 No.22/NA Withdrawal Application - 323.752 7,083,363,000 - -- - 323,752 7,083,363,000 No.23/NA Withdrawal Application - - - - 60,697 1.352,231,050 30,724 684,219,000 18,924 421.433.365 - -, 110.345 2,457.883,415 No.24/NA Withdrawal Application - - - - - 229,350 5,076.662,000 - - - - 229,350 5,076,662,000 No.25/NA Withdrawal Applicalion - - - - - 238,537 5.280,019,000 - - - - 238,537 5,280.019,000 No.26/NA Withdrawal Application - - 10,130 226,640,800 - - 26,351 592,110,150 - - - - 36,481 818,750,950 No.09/GEF Withdrawal Application - - 1,801 40,146,000 - - 26,083 580.880,550 - - - - 27,884 621,028,550 No.10/GEF Whdrawal Application - - 28.861 544,264,200 - - 35,109 782,296,950 - - - - 63,970 1,426,561,160 Total - - 43,121 963,311,000 150,348 3,584,314,000 2,857,015 62,841,624,606 57,834 1,291,796,715 - - 3,118,318 68,681,046,221 12 ..E..E.EME.EE..EEEW.E....EEEEE.. THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113- VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ("iDA") and the Additional Financing No. TF014293 - VN between the Government of 31/12/2016 the Socialist Republic of Vietnam and the World Bank ("WB") Initial withdrawal Institutional Policy Practical experience for Practical experience for Project management Other sustainable aquaculture sustainable coasting fishingToa Application No equivD vD SS eqi US$ VND equivalent US$ equivaent N ss equivalent USS VND equivalent Ha Tinh Withdrawal Application - - - - 10,541 222,415,180 10.541 222.415.180 06/IDA Withdrawal Application - - - 52,641 1,182,448,600 200.143 4,495,031,600 19,988 449,463,500 - 272.772 6,126,943,700 No.14)HT Withdrawal Application 3.594 80,000,000 62,857 1,405,207,000 68,103 1,549570,000 18,089 369,555,232 - 152,643 3,404,332,232 No.151HT Withdrawal Application - - 142.999 3.185.546,200 129,819 2,892,042,000 13,163 293,118,000 - - 285.981 6,370,706,200 No.16/HT Withdrawal Application - - - 148,428 3,305,832,300 24,833 552,827,000 16.893 376,276,200 - - 190,154 4,234,935,500 No. 17IHT Withdrawal Application _ - - 84,849 1,905,050,000 . - - - 84,849 1,905,050,000 No.04/GEF/HT Withdrawal Application 22.201 492,302,000 - - 3,768 84,000,000 - - - - 25.969 576,302,000 No.05/GEF/HT Sub-total - - 25,795 572,302,000 417,466 9,301,449,280 511,516 11,478,520,600 68,133 1,488,412,932 - - 1,022,909 22,640,684,812 13 *EMUUEu EEuMESEmEmEuuEuumuuuuag THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ("IDA") and the Additional Financing No- TFD 14293 - VN between the Government of 31/12/2061 the Socialist Republic of Vietnam and the World Bank ("WE") Initia vithdaival inshtu?onal olicy Practical expefience for Practical experience for PoetMngmn te oa ApplicatinInitial whdraw stitutinal Po/cy sustabnale aquaculuore sustan8able coasting fishing Proect management Other us$ VND S VND Li$VND US$ VND equivalent uss VND us$ VNE) Uiss VNDOqvlp equivalent equiva let UqLSn equivaS equivalentUequialent Blh Dinh Withdrawal Applcation No. 25/BD - - - - 129,906 2,902,748,900 98,849 2,209,340,000 13.573 304,757,000 - - 242,328 5,416,845,900 Withdrawal Application No.26/BD - - 528 11.740.000 56.612 1,261 240,000 156.972 3.508,254,000 30,321 675,419,000 - - 244,433 5.456,653,000 Wiltidrawal Application No.27/BD - - - - 712 15.872,000 142,812 3.183,680,000 2,372 52,922,000 - - 145.896 3.252,474.000 Withdrawal Application No 28/BD - - - - 16,708 372,379.000 139.255 3.100.471,000 18,289 397,382,000 - - 174,262 3,870,232,000 Withdrawa! AppIrcation No.291BD - - - - 29.566 658,146,000 191,823 4.269,976,000 7,239 161,139,000 - - 228,628 5,089,261,000 Withdrawal Application No.30BD - - - - 29.186 649.871,000 206.203 4.594.474.000 6,493 144,581,000 - - 241,882 5.388,926,000 Wilhdrawal Application No 04MBD - - 35,438 795,503,000 - - 64,483 1,444.482,000 - - - - 99.921 2,239.985,000 Withdrawal Application No.05/0 - - 447 9,990.000 - - 98.577 2.192.574.000 - - . . 99,024 2.202,564,000 Withdrawal Application No.06/BD - - - - - - 52,645 1,174,020,000 - - - 52,645 1,174,020,000 Withdrawal Application No 071BD - - 17,920 405,258,000 - - 65.071 1,449.666,000 - - 82,991 1,854,924,000 Total - 54,333 1,222,491,000 262,590 5,860,258,900 1,216.700 27,125,937,000 78,287 1,736,200,000 - - 1,612,010 35,945,884,900 14 W*EEEUEA EEEEEagg EEEEEEEEaggENgas THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of 31/12120/6 the Socialist Republic of Vietnam and the World Bank ("WB") Initial withdrawal Institutional Policy t w ac n Project management Other Total Alplp4cati Nous VND us VND US VNiD US VNDeqiaet V$VD UsVDU$ VDeuvln equivaDent equivaent equive uiva le equivalent US VqutyD US equivalent US VN equivalent Phu Yen Withdrawal Application No - - - 236270 5293,220.880 201,522 4,477,974.000 10,980 246,541,417 - - 448,772 10,017,736,297 221PY Withdrawal Application No, - - - - - - 52,241 1.163.400.000 - - - - 52,241 1,163.400,000 24fPY Withdrawal Applkcation No. - - - - - - 42,948 958.124,000 - - - - 42,946 958,124,000 25/PY Withdrawal Application No - - - - - - 44,903 1,000.000,000 - 44,903 1,000,000,000 26/PY Withdrawal Application No - - - - - 253,910 5,652.030,000 - - - - 253.910 5,652,030,000 27/PY Withdrawal Application No - - - - 31,569, 702,729,800 99,449 2,213.743,200 - . - - 131.018 2,916,473,000 2M/PY WithdrawalApplication No - - 33,817 754,400,000 2,404 52,742,784 2,669 59,561,998 12,773 284,354.263 - - 51.663 1.151,059,045 29/PY Withdrawal Application No - - - 47,976 1,069,854,000 - - 612 13,649,000 - - 48,588 1.083,503,000 30/PY Withdrawal Appilcation No - - - - 24.859 553,837,000 - - - - - - 24,859 553,837,000 31/PY Withdrawal Application No. - - - - - - 302,389 6,734,201,000 - - - 302,389 6,734.201,000 321PY Withdrawal Application No. - - - - 74.426 1,657,469,000 - - - 74,426 1,657.469,000 33/PY Withdrawal Application No - - - - 76,458 1,702,374.141 24,387 542,575,000 13,670 304.661,216 - - 114,515 2,549,610,357 341PY Withdrawal Application No - - - - - - 157,713 3,512.308,500 - - - 157,713 3,512,308,600 35/PY W;thdrawal Application No - - - - - - 12,026 269,421,000 - . - 12,026 269.421,000 06/GEF/PY Withdrawal Application No - - - - - 29.835 664.424,000 - - 29,835 664,424,000 07/GEFIPY Withdrawal Application No - - 188 4,10,000 - - 57,298 1,276,124,000 - - - 57,486 1,280,314,000 08/GEFiPY Withdrawal Application No - - - . 41,789 930,843,000 - - 41,789 930,843.000 09/GEFIPY Withdrawal Application No - - 192 4,276.500 - - 63,771 1,425,135,000 - - - 63,963 1,429,411,500 10!GEFIPY Sub-total - - 34,197 762,886,500 419,536 9,374,758,805 1,461,274 32,537,333,798 38,035 849,205,896 - - 1,953,042 43,524,164,799 15 *EEEEEEamEEEENEEEMEEEEEMEamgE THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ('IDA") and the Additional Financing No. TF014293- VN between the Government of 31/12/2016 the Socialist Republic of Vietnam and the World Bank ("WB") Initial withdrawaI Institutiona/ Policy Pract"cal expelience for Practical experience for Prolect management Other Total ApplWation No sustainab2e aquaculture nlstainat!e coasting ffsIlfng VID VND VIND VND V/ND USS equivalent equivalent USS VND equivalent USS equi 23$ equivalet US$ equivalnt US$ VND equivalent Khanh Hoa Withdrawal Applical!on No 16/KH - - - - - 120,729 2,642,029.800 - - - 120,729 2.642,029,800 Withdrawal Application No 171KH - - - 528,915 11,579,845,500 - - - - - - 528,905 11,579.645,500 Withdrawal Application No.19/KH - - - 131,591 2,874,208,150 - - - 131,591 2,874,208,150 Withdrawal Application No.20/KH - - - 124.220 2.764,551,300 - - 20,412 451,996,951 - - 144,632 3,216,548.251 Withdrawal Application No.211KH - - - 23,663 360,790,800 123,031 2,899,963,200 10.383 231,287.426 - - 157,077 3,492,041,426 Withdrawal Application No.22/KH - - - - 856,877 18,811.016,562 - - - - - - 856,877 18.811,016,562 Withdrawal Application No.03/GEF/KH - - 274 5,151,480 - - 18,667 415,751,500 - - 18,941 421,902,980 Subtotal - - 274 6,151480 1,665.256 36390,412,312 262,427 5,957,744,500 30,795 683,284,377 - - 1,958,752 43,037,592,669 16 *EEEEEEEm EEEEEENEWEEMEEME EENg THE PROJECT MANAGEMENT UNIT THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT COMBINED FINANCIAL STATEMENTS Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the For the year ended International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of 31/12/2016 the Socialist Republic of Vietnam and the World Bank ("WB") Initial withdrawal Institutional Policy Practical expeiience for Practical expenence for Project Management Other ApiainN-VDVD sustainable aquaculture sustainable coasting lishing Projec mangeen Tteotal! USS equivalent US$ equivaDent US$ VND equivalent US$ VND equivalent US$ Uss equivalent USS VND equivalent Ca Mau Withdrawal Application - - - 100,571 2,254.181,393 144,965 3,249,210.494 1,402 31,428,113 246,938 5,534,820,000 No,211CM Withdrawal Application - - - 91,587 2,049.899,827 48,000 1,074,337,483 19,344 432,952,190 158,931 3.557,189,500 No.221CM Withdrawal Application - - 105,559 2,355,845,192 53,592 1,196,060,211 26,776 597,573.597 185,927 4,149,479,000 No.241CM Withdrawal Application - - - - 21,911 487,750,684 167,483 3,728,316,473 7,948 176,926.843 197,342 4,392,994,000 Nc.2a/CM Withdrawal Application - - - 155,184 3,480.315.510 108,006 2,408,335,490 - - 263,190 5,868,651,000 No.271CM Withdrawal Application - - - - 50,027 1,113,561,561 159,354 3,547,061,439 - - 209,381 4,660,623,000 No.2 81CM Withdrawal Application - - - - - - 143.758 3,155,199,000 - - 143.758 3,155,199,000 No-29/,CM Withdrawal Application - - 2,967 65,484,663 - - 38.538 852,873,337 - - 41,605 918,358,000 No.D05/GE PICM Withdrawal Application - 5.708 127,557,932 - - 24.650 550,812,268 - - 30,358 678,370,200 No.GO6IGE F/CM Withdrawal Application--- - - 18.285 408,968,700o - 18.288 405,968,700 No. 071G E FICM Wihrawal ApplicatEon _4qg 44gg Withda Application - - 32.551 724,780,227 - - 42.675 950,212,773 - - 75,227 1,674,993.000 Sub-total - - 41,226 917,822,822 524,839 11,721,554,167 949,408 21,119,387,668 55,470 1,238,880,743 _1,670,943 34,997,645,400 17 -:―닙；，「· THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government 31/12/2016 of the Socialist Republic of Vietnam and the International Development Association ("IDA') and the Additional Financing No- TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank CWB11) NOTES TO THE 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 the Global Environment Facility ('GEF") and the Government of the Socialist Republic of Vietnam signed Grant Agreement No. TF014293 - VIN ("Financing Agreement") with totaJ amount of USID 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 and Ca Mau. The Project is implemented by the Ministry of Agriculture and Rural Development under a decentralized system consisting of 8 implementing provincial project management units (ILPPMU'), At Ha Noil the Project is implemented by Provincial Department of Agriculture and Rural Development, and centrally managed by Provincial 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 A 1: Integrated Spatial Planning of Coastal Areas; Sub-com ponent A2: U pgradling of Vietnarn fishery data base (Vn fish base); and Sub-cornponent A3: Conducting Selected Policy Research. Component B - Good Practices For Sustainable Aquaculture: includes 3 sub-components: Sub-component 81: Improved Bic-security Management; Sub-component 132: Improved Seed Ouality Management; and Sub-component B3: Improved environmental monitoring. (lil) Component C - Sustainable Management of Near-shore Capture Fisheries: includes 2 sub- components: Sub-component Cl: Co-Management of Near-Shore Capture Fisheries; and Sub-component C2: Improvement of Hygienic Conditions and Operation Efficiency of selected fishing ports and landing sites. (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- 19 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of 31/12/2016 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE FINANCIAL STATEMENTS (CONT'D) 2. ACCOUNTING CONVENTION AND ACCOUNTING PERIOD Accounting convention The Project's financial statements, except for the statement of designated account and statement of withdrawals, are presented in Vietnam dong ("VND"), The statement of designated account is presented in United States dollars ("USD") and statement of withdrawals account is presented in USD and VND. The Projects financial statements are prepared in accordance with the accounting policies described in Note 3 and suitable 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. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies, which have been adopted by the Project Management Unit in the U 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 December 2016 of the PCU and 8 PPMUs. The combined income and expenditure are the sum of all corresponding income and expenditure incurred for the year ended to 31 December 2016 of the PCU and 8 PPMUs. There is no inter-project transaction and/or transactions among related projects that were required to be eliminated. Contribution from International Development Association ("IDA") and Global Environment Facility ("GEF") Contributions from IDA and GEF are recognized when fund 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. Receivables Receivables are recognised on the basis of actual amounts at occurring transaction and amounts advance 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. 20 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of 31/12/2016 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE FINANCIAL STATEMENTS (CONT'D) U 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 8 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 eight provinces that PPMUs open bank account at the reporting date. 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. Payables U 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; U 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 related supporting documents have been approved by the Project management. U U U2 MEEEEEEaEEEaEEgEEgEgEE MEgOEN NE THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 31/12/2016 Development Association ("IDA") and the Additional Financing No- TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE 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 as per designated account Intermediary bank's charges Total contribution USS VND equivalent US$ VND US$ Equivalent _ I equivalent VND Accumulated as at 31 December 2015 33,148,635 708,802,393,492 2,994 64,058,065 33,151,629 708,866,451,557 Increase during the year Contribution from IDA through designated account 11,192,315 245,313,809,819 897 19,658,490 11,193,212 245,333,468,309 PCU 2,657,996 58,258,254,143 - - 2,657,996 58,258,254,143 Thanh Hoa 755,559 16,586, 755,147 60 1,315,900 755,619 16,588,071,047 Nghe An 604,734 13,240,854,975 30 657,030 604,764 13,241,512,005 Ha Tinh 912,072 20,054,535,321 20 439,928 912,092 20,054,975,249 Binh Dinh 1,383,773 30,321,804,446 453 9,932,240 1,384,226 30,331,736,686 Phu Yen 1,747,683 38,266,664,558 260 5,690,200 1,747,943 38,272,354,758 Khanh Hoa 301,708 6,611,520,951 - - 301,708 6,611,520,951 Ca Mau 1,261,686 27,611,235,976 24 525,232 1,261,710 27,611,761,208 Soc Trang 1,567,104 34,362,184,302 50 1,097,960 1,567,154 34,363,282,262 Contribution by direct payment from IDA 4,936,812 108,238,222,742 - - 4,936,812 108,238,222,742 PCU 553,970 12,129,837,730 - - 553,970 12,129,837,730 NgheAn 2,385,220 52,326,316,000 - - 2,385,220 52,326,316,000 Khanh Hoa 1,638,103 35,907,100,012 - - 1,638,103 35,907,100,012 Ca Mau 143,758 3,155,199,000 - - 143,758 3,155,199,000 Soc Trang 215,761 4,719,770,000 - - 215,761 4,719,770,000 Total Contribution for the year ended 31 December 2016 16,129,127 353,552,032,561 897 19,658,490 16,130,024 353,571,691,051 Accumulated as at 31 December 2016 49,277,762 1,062,354,426,053 3,891 83,716,555 49,281,653 1,062,438,142,608 22 E E . E EE*EEE*EEEE*M*E**EMNEE*E.* THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 31/12/2016 Development Association ('IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE FINANCIAL STATEMENTS (CONT'D) 4. CONTRIBUTION FROM THE INTERNATIONAL DEVELOPMENT ASSOC1ATION ("IDA") AND THE GLOBAL ENVIRONMENT FACILITY ("GEF") (continued) 4.2 Contributions received from GEF as reported by the Project Amount received by the Project Intermediary bank's Total contribution as per designated account charges US$ VND equivalent US$ US$ VND equivalent Accumulated as at 31 December 2015 1,471,086 31,479,219,779 461 9,917,622 1,471,547 31,489,137,401 Increase during the year Contribution from GEF through designated account 1,052,361 23,118,885,402 350 7,671,726 1,052,711 23,126,557,128 PCU 30,407 665,599,379 - - 30,407 665,599,379 Thanh Hoa 32,110 701,610,929 20 437,000 32,130 702,047,929 Nghe An 128,304 2,824,744,973 30 658,920 128,334 2,825,403,893 H Tinh 110,809 2,424,062,032 8 174,988 110,817 2,424,237,020 Binh Dinh 334,417 7,338,702,038 166 3,629,678 334,583 7,342,331,716 Phu Yen 204,999 4,520,852,690 100 2,201,440 205,099 4,523,054,130 Khanh Hoa 18,941 414,515,906 - - 18,941 414,515,906 Ca Mau 165,459 3,640,278,876 16 351,040 165,475 3,540,629,916 Soc Trang 26,915 588,518,579 10 218,660 26,925 588,737,239 Total Contribution for the year ended 31 December 2016 1,052,361 23,118,885,402 350 7,671,726 1,052,711 23,126,557,128 Accumulated as at 31 December 2016 2,523,447 54,598,105,181 811 17,589,348 2,524,258 54,615,694,529 23 ..mEE..E.m EEam.EEE..E.E.as.aE THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 31/12/2016 Development Association ("IDA) and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank (WB") NOTES TO THE 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 year ended 31 December 2016 Cumulative for the period US$ VND equivalent US$ VND equivalent Contribution from IDA and GEF 17,182,735 376,698,248,179 51,805,911 1,117,053,837,137 In which: Amount received from IDA through designated account 11, 192,315 245,313,809,819 39,403,717 848,616,686,421 Amount received from IDA through directly payment to suppliers 4,936,812 108,238,222,742 9,874,045 213,737,739,632 Amount received from GEF through designated account 1,052,361 23,118,885,402 Z523,447 54,598,105,181 Intermediary bank's charges 1,247 27,330,216 4,702 101,30S,903 Addition: Amount claimed and not yet received - - 141,304 3,150,686,000 Foreign exchange difference - 3,956,874,114 - 4,120,198,165 Minus: Amount received in 2016 of the withdrawal application was made in 2015 106,799 2,381,919,000 106,799 2,381,919,000 Total amounts contributed by IDA and GEF as per Statement of Expenditures 17,075,936 378,273,203,293 51,840,416 1,121,942,802,302 24 THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113- VN between the Government of 31/12/2016 the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") * NOTES TO THE FINANCIAL STATEMENTS 5. CONTRIBUTION FROM THE GOVERNMENT OF VIETNAM Currency: VND For the year ended 31 Cumulative for the period from 9 August 2012 to 31 December 20162016 PCU 1,803,648,266 4,860,760,284 Thanh Hoa 7,738,906,000 20,607,036,600 Nghe An 7,959,147,000 21,167,573,937 Ha Tinh 1.000,000,000 7,599,993,054 Binh Dinh 4,407,804,014 11,229,155,000 Phu Yen 2,593,249,266 13,332,326,016 Khanh Hoa 4,959,117,000 12,920,287,512 Ca Mau 4,526,770,299 15,175,458,799 Soc Trang 4,012,634,716 15,196,374,361 TOTAL 39,001,276,561 122,088,965,563 U U U U U U U U U. U U U U U U 25 U ME....ME...MEE.E..E.M.E.EEEagE. THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 31/12/2016 Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS 6. EXPENDITURE 6.1. Expenditure by categories and source of funds Currency: VND For the year ended 31 December 2016 Cumulative for the period from 9August 2012 to 31 December 2016 Financed by Financed by Financed by IDA Financed by the Total Financed by IDA Financed by the Total GIEF Government Ttl FncebyIA GEF Government ofToa of Vietnam Vietnam Institutional Capacity Strengthening for Sustainable Fishery Management 3.078,949,700 4.627,242,700 - 7,705,192,400 8,708,994,358 8,699,018,701 - 17,408,013,059 Good Practices for Sustainable Aquaculture 182,210,500,529 - 18,570,436,687 200,780,937,216 434,500,017,410 371,581,000 41,788,686,641 476,660,285,051 Sustainable Management of Near-Shore Capture Fishenes 213.370,928,630 22,740.929.000 9,632.717,630 245,744,575,260 558,113,384,499 40,959,394.722 45,365,278,460 644,438,057,61 Project Management. Monitoring and Evaluation 23,404,502,793 - 9,735.267.692 33.139.770,485 96,944,803,330 - 36,423,150,322 133.367,953,652 Total 422,064,881,652 27,368,171,700 37,938,422,009 487,371,475,361 1,098,267,199,597 50,029,994,423 123,577,115,423 1,271,874,309,443 6.2. Actual expenditure vs budget comparison Currency: VND For the year ended 31 December 2016 Cumulative for the period from 9 August 2012 to 31 December 2016 Actual expenditure Budget for the Cumulative actual Cumulative budget for for the fiscal year fiscal year epnditrforhethe period from 9 ended 31 ended 31 Difference % period from 9 August Difference % December 2016 December 2016 2012 to31 Decem December 2016 ______________ ____________2016 Dcme21 Institutional Capacity Strengthenmg for Sustainable Fishery Management 7,706.192.400 26.236,248,000 (16,530,055.600) (71%) 17,408,013.059 68,453,092.800 (51,045,079,741) (75%) Good Practices for Sustainable Aquaculture 200,780,937,216 323,295,090,000 (122,514,152.784) (38%) 476,660,285,051 971,296,909,238 (494,636,624.187) (51%) Sustainable Management of Near-Shore Capture Fisheries 245,744,575,260 411,459,286,000 (165,714,710.740) (40%) 644,438,057.681 1,178.238,859,588 (533.800,801,907) (45%s) Project Management, Monitoring and Evaluation 33,139,770,485 45,901,440,000 (12,761,669,515) (28%) 133,367,953,652 170,000,067,000 (36,632,113.348) (22%) Total 487,371,475,361 806,892,064,000 1 (319,520,588,639) _40%})_ 1,271,874,309,443 2,387,988,928,626 (1,118,114,619,183) (47%) 26 aEEEEENEEEEEEEEEEgaga E ag NEE THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the Government of the Socialist Republic of Vietnam and the International 31/12/2016 Development Association ("IDA") and the Additional Financing No. TF014293 - VN between the Government of the Socialist Republic of Vietnam and the World Bank ("WB") NOTES TO THE COMBINED FINANCIAL STATEMENTS 7. CASH Currency: VND PCU Thanh Hoa Nghe An Ha Tinh Binh Dinh PhuYen Khanh Hoa Ca Mau Soc Trang Total Cash at banks 100,612,843 3,034,242 5,026,723,652 2,836,764,037 2,315,761,365 2,456,916,475 320,888,162 5,079,385,983 1,934,128,447 20,074,215,206 Designated account 89,382,094 3,034,242 4,985,478,221 2,808,407,518 2,190,685,805 2,226,824,174 6,312,203 3,140,681,047 1,836,912,455 17,287,717,759 Other bank account 11,230,749 - 41,245,431 28,356,519 125,075,560 230,092,301 314,575,959 1,938,704,936 97,215,992 2,786,497,447 In which: Interest income 7,338 - - 28,356,519 26,775,940 988,619 10,575,750 13,944,880 1,286,634 81,935,680 Cash on hand 203,909,851 7,323,000 3,138,400 256,345,000 57,270,400 13,551,854 49,676,350 27,642,994 116,665 618,974,514 Total 304,522,694 10,357,242 5,029,862,052 3,093,109,037 2,373,031,765 2,470,468,329 370,564,512 5,107,028,977 1,934,245,112 20,693,189,720 27 U THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the 31/12/2016 Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing 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 At 31 December 2016 PCU 1,648,171,324 Thanh Hoa Nghe An 6,203,360,466 Ha Tinh 3,470,471,080 Binh D[nh 3,832,148,000 Phu Yen 1,104,726,030 Khanh Hoa 4,038,453,960 Ca Mau 11,972,738,000 Soc Trang 5,582,667,616 Total 37,852,736,476 9, PAYABLES TO SUPPLIERS Currency; VND At 31 December 2016 PCU 19,903,346,855 Thanh Hoa 8,118,046,000 Nghe An 1,161,461,387 Ha Tinh 967,143,036 Binh Dinh 7,182,334,000 Phu Yen 9,029,721,300 Khanh Hoa 11,295,710,562 Ca Mau 4,945,268,600 Soc Trang 4,282,013,500 Total 66,885,045,240 U U U * 28 U * THE PROJECT MANAGEMENT UNIT COMBINED FINANCIAL STATEMENTS THE COASTAL RESOURCES FOR SUSTAINABLE DEVELOPMENT PROJECT For the year ended Under the Financing Agreement for Credit No. 5113 - VN between the 31/12/2016 Government of the Socialist Republic of Vietnam and the International Development Association ("IDA") and the Additional Financing No. TF01 4293 - 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 Currency: VND Suppliers At 31 December 2016 PCU 36,064,331 Thanh Hoa - Nghe An - Ha Tinh 27,348,751 Binh Dinh 61,759,217 Phu Yen - Khanh Hoa 507,429,236 Ca Mau 9,470,233,699 Soc Trang 1,181,988,461 Total 11 284,823,695 UU M Pham Ngoc Sao Chu Ngoc Phu Le Thi Kim Cuc Director Accountant Preparer Hanoi, S.R. Vietnam 27 June 2017 U U U U U2 U U PART II U * INDEPENDENT ASSURANCE REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROL U U U U U 3 U I ACA Ltd g INDEPENDENT ASSURANCE REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROL U 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 the: 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") and Soc Trang Provincial Project Management Unit ("Soc Trang PPMU") (collectively referred to as "the eight PPMUs") which existed for the year ended 31 December 2016. 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 eight 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 to the combined financial statements of the Project for the year ended 31 December 2016. 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 to 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: U - 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 eight PPMUs to achieve its objective of prevention and detection of errors, irregularities and fraud that could have a direct and material financial effect to the combined financial statements of the Projects; The significance to the combined financial statements where one control or several con[rols 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. * Auditor's Opinion * The Project's internal control system of the PCU and the eight PPMUs for the year ended 31 December 2016, in all material respects, is sufficiently designed for the Project's purposes and operated in an effective manner, based on the evaluating criterion above. Head Office; 9th floor. HL Building, 82 Duy Tan street, Cau Gay distnct. Hanoi, Vietnam Tel: + 84 4 3755 7446 Fax: + 84 4 3755 7448 31 Website: www uhyacae vrn E: ccntact@uhyaca vn - nternonal a network of independent accounting and consult ng firms Other Matters We draw attention to Appendix 1 - Management letter dated 27 June 2016 including PCU and the eight PPMUs, in which we discussed findings from the internal control which have no direct and material financial effect to 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 nce for future periods due to the risk that internal control may become inappropriate because of o ons, o ree of compliance with policies or procedures may deteriorate. HACA MDC01020 Nguyen Thi Phuong Thao t6 Director Auditor CPA e iicate No. 1022-2014-112-1 CPA Certificate No. 0933-2014-112-1 For and on behalf of UHY ACA CONSULTING AND AUDITING COMPANY LIMITED Hanoi, 27 June 2017 U U U U U U U U3 U U U U U U U U PART 1ll U INDEPENDENT ASSURANCE REPORT ON COMPLIANCE U U U U U U U U U 3 U H YACA Ltd INDEPENDENT ASSURANCE REPORT ON COMPLIANCE U 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") and Soc Trang Provincial Project Management Unit ("Soc Trang PPMU"), (collectively referred to as "the eight 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 year ended 31 December 2016. The Project management is responsible for the compliance with the Financing Agreement, the Project's Operational Manual ("POM") and other laws and regulations applicable to the Project (collectively referred to as "the Project's regulations"). Auditors' Responsibility Our responsibility is to express an opinion, based on our examination, on the compliance of the PCU and the eight PPMUs with the Project's regulations that could have a direct and material financial effect to the combined financial statements of the Project for the year ended 31 December 2016. We conducted our examination in accordance with the principles of International Standard on Assurance Engagements 3000 - Assurance Engagements other than Audits or Reviews of Historical Financial Information ("ISAE 3000") insofar this standard could be usefully applied in this examination and in its specific compliance context. This standard requires that we comply with ethical requirements and that we plan and perform the examination to obtain reasonable assurance about whether the PCU and the eight PPMUs comply with the Project's regulations that could have a direct and material financial effect to the combined financial statements. Our examination included obtaining a sufficient understanding of the Project and the Project's regulations; assessing the risk on non-compliance exists that could have a direct and material financial effect to the combined financial statements of the Project; testing and evaluating, on a sample basis, the compliance of the Project management with the Project's regulations 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 compliance of the PCU and the eight PPMUs with the Project's regulations: - The appropriateness of the internal control for the Project's activities and objectives: - The implementation of the internal control by the PCU and the eight PPMUs to achieve its objective of prevention and detection of errors, irregularities and fraud that could have a direct and material financial effect to the combined financial statements of the Projects: - The significance to the combined financial statements where one control or several controls did riot operate as designed, if any; and - Weaknesses and shortcomings have existed when the PCU and the eight Provincial Project Management unit fail to comply with one or more of the requirements of the Project Regulations that may have a direct and significant financial impact to the combined financial statements. We believe that our audit provides a reasonable basis for our opinion. Auditor's Opinion In our opinion, the PCU and the eight PPMUs have complied, in all material respects, with regulations of the project that may have a direct and material financial impact to the combined financial statements of the Project as at 31 December 2016 and for the year then ended on the basis of the above evaluation criteria. Head Office: 9th floor. HL BuIding, 82 Duy Tan streel, Cau Gay district, Hanoi, Vietnam Tel: + 84 4 3755 7446 Fax: + 84 4 3755 7448 34 Website: %"ww uhyaca vn * E: contactguhyaca Yn $PtttnkasoaI.a network of independent acuounting and conRflt Rg firms Other Matters We draw attention to Appendix 1 - Management letter dated 27 June 2016 including PCU and the eight PPMUs, in which we discussed minor departures from the Project's regulations which have no direct and material financial effect to the combined financial statements of the Project but may put the Project's objectives at risk. This examination involved a historical evaluation of the compliance of the Project management with the Project's r a specific point of the time. Thus, this examination does not provide assurance for future periods due Ul nges in the Pro ' regulations, or that the degree of compliance with the Project's regulations, y deteri UH C ung Nguyen Thi Phuong Thao Deputy General Director Auditor CPA Certificate No. 1022-2014-112-1 CPA Certificate No. 0933-2014-112-1 For and on behalf of UHY ACA CONSULTING AND AUDITING COMPANY LIMITED Hanoi, 27 June 2017 U U U U U U U W U U W U3 W