“Central Asia Hydrometeorology Modernization Project (Tajikistan)”
Grant No. 099848, Grant No. H679-TJ
Financial statements
For the year ended 31 December 2016, together with independent auditor’s report
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“Central Asia Hydrometeorology Modernization Project (Tajikistan)”, Grant 099848, Grant H679-TJ Financial statements
CONTENTS INDEPENDENT AUDITOR’S REPORT Statement of cash receipts and payments ................................................................................................................................................... 1 Statement of funds by project components ............................................................................................................................................... 2 Statement of applications .......................................................................................................................................................................... 3-4 Statement of special account ........................................................................................................................................................................ 5 NOTES TO THE FINANCIAL STATEMENTS 1. General ................................................................................................................................................................................................ 6 2. Basis of preparation ........................................................................................................................................................................... 6 3. Summary of significant accounting policies .................................................................................................................................. 6 4. Cash and cash equivalents ................................................................................................................................................................ 7 5. Project cumulative expenses ............................................................................................................................................................ 8 6. Funds ................................................................................................................................................................................................... 8 7. Cumulative other income and expenses ........................................................................................................................................ 8 8. Undrawn funds .................................................................................................................................................................................. 8 9. Legal cases ........................................................................................................................................................................................... 8 10. Events after reporting period .......................................................................................................................................................... 8 APPENDIX 1. RECONCILIATION OF AMOUNTS PRESENTED BY THE PCU AND REIMBURSABLE BY THE WORLD BANK AND THE IDA ............................................................................ 9-10
“Central Asia Hydrometeorology Modernization Project (Tajikistan)”, Grant 099848, Grant H679-TJ Financial statements
STATEMENT OF APPLICATIONS
For the year ended 31 December 2016
In US dollars
The accompanying notes on pages 6 to 8 are an integral part of these financial statements. 3
2016
Sources of financing Applications
Goods, advisory services,
including audit, trainings, operating expenses Total
Grant No. 099848 19 2,000,066 2,000,066 20 42,434 42,434
21 133,412 133,412 22 123,080 123,080 23 52,614 52,614 24 86,763 86,763 25 66,162 66,162 26 259,858 259,858 27 20,960 20,960 28 57,704 57,704 29 8,780 8,780 29-2 35,119 35,119 36 360,000 360,000 37 101,394 101,394
Total 3,348,346 3,348,346
Grant No. H679-TJ 19 2,000,066 2,000,066 20 42,434 42,434 21 133,412 133,412 22 123,080 123,080 23 52,614 52,614 24 86,763 86,763 25 66,162 66,162 26 259,931 259,931 27 185,363 185,363 28 57,704 57,704 29 43,899 43,899 31 118,800 118,800 32 56,160 56,160 33 99,688 99,688 34 56,158 56,158 35 57,190 57,190
Total 3,439,424 3,439,424
6,787,770 6,787,770
“Central Asia Hydrometeorology Modernization Notes to the financial statements Project (Tajikistan)”, Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2016
In US dollars
6
1. General
According to the Agreement between the Republic of Tajikistan and the International Bank of Reconstruction and Development (hereinafter – the “World Bank”) dated 13 July 2011, the World Bank provided Grant No. 099848 to the amount of USD 7,000,000 to the Republic of Tajikistan.
According to the Agreement between the Republic of Tajikistan and the International Development Association (hereinafter – the “IDA”) dated 13 July 2011, the IDA provided Grant No. H679-TJ to the amount of Special Drawing Rights (hereinafter – “SDR”) 3,900,000 to the Republic of Tajikistan to render assistance in financing the “Central Asia Hydrometeorology Modernization Project (Tajikistan)” (hereinafter – the “Project”).
Project purpose
The purpose of the Project is improving the accuracy and timeliness of rendering hydrometeorological services in Central Asia, paying a special attention to the Kyrgyz Republic and the Republic of Tajikistan.
The Project comprises the following components:
Component 1: strengthening of regional coordination and data exchange;
Component 2: improving of hydrometeorological services in the Kyrgyz Republic;
Component 3: improving of hydrometeorological services in the Republic of Tajikistan.
Project management
The Project is implemented by the Project Coordination Unit (hereinafter – the “PCU”) under the State Hydrometeorology Entity of the Environmental Committee under the Government of the Republic of Tajikistan based on operating management as approved by the Project Management Committee of the Agency for Hydrometeorology of Tajikistan dated 12 August 2011.
Address of PCU: 47 Shevchenko str., Dushanbe, 734025, Republic of Tajikistan.
Duration of the Project is from 13 June 2011 to 30 June 2018.
2. Basis of preparation
These financial statements are prepared in accordance with the International Public Sector Accounting Standards (hereinafter – the “IPSAS”) Financial Reporting under the Cash Basis of Accounting, issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and relevant points of the Grant No. 099848 and Grant No. H679-TJ.
Financial statements comprise:
Statement of cash receipts and payments;
Statement of funds by project components;
Statement of applications;
Statement of special account;
Notes to the financial statements including the summary of significant accounting policies and other explanatory notes.
The reporting currency of these financial statements is US dollars.
3. Summary of significant accounting policies
Cash basis of accounting
The financial statements was prepared and presented based on cash method of accounting. Cash method of accounting is the accounting principle, according to which changes in the financial position of the entity are recognized only at the time when cash is paid or obtained. Financial statements prepared based on cash method presents information on the source of cash, application of funds objective and cash balances as at the reporting date. The measurement focus in the financial statements is balances of cash and changes therein.
“Central Asia Hydrometeorology Modernization Notes to the financial statements Project (Tajikistan)”, Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2016
In US dollars
7
3. Summary of significant accounting policies (continued)
Foreign currency
Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the National Bank of the Republic of Tajikistan (hereinafter – the “NBRT”) on a date of operation.
Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate settled by the NBRT on a reporting date of the Financial Statements.
All foreign exchange differences resulted from maturity or recounting are included in statement of cash receipts and payments.
Non-monetary items are valued according to their historic cost in foreign currency, which presented on rates of the initial operation date.
In preparing the financial statements the following exchange rates of the NBRT in regard to Tajik somoni were used:
31 December 2016 7.8762 31 December 2015 6.9902
Cash and cash equivalents
Cash and cash equivalents include cash on hand and demand deposits on current and interest-bearing accounts.
Taxes
Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan.
Project expenses
The expenses are recorded in the period when they were actually paid.
Sources of funds
The funds to the Project were provided by World Bank and the IDA by replenishment of special account or through direct payment to the end supplier of goods and/or services.
4. Cash and cash equivalents
As at 31 December, cash and cash equivalents comprise:
2016 2015 Special account in foreign currency – Grant No. 099848 304,862 170,687 Special account in foreign currency – Grant No. H679-TJ − 113,062 Transit account in national currency – Grant No. 099848 7,501 11,469 Transit account in national currency – Grant No. H679-TJ 1,114 12,469 Cash on hand in national currency 73 1,230 Cash on hand in foreign currency − 14 Other 9 789
Total 313,559 309,720
“Central Asia Hydrometeorology Modernization Notes to the financial statements Project (Tajikistan)”, Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2016
In US dollars
8
5. Project cumulative expenses
Project expenses on major categories are presented in the statement of cash receipts and payments. Project expenses on major components are presented in the statement of funds by the project components. Project expenses based on sources of financing are presented as follows:
2016 2015 Sources of financing For the period Cumulative For the period Cumulative Grant No. H679-TJ (3,566,882) (5,537,029) (681,295) (1,970,147) Grant No. 099848 (3,213,972) (5,198,639) (680,777) (1,984,667)
Total (6,780,854) (10,735,668) (1,362,072) (3,954,814)
6. Funds
Financing of the Project in 2016 and 2015 was made in the following way:
2016
Financing method / sources of financing Grant
No. 099848 Grant
No. H679-TJ Total Reimbursement of expenses 259,858 259,931 519,789 Direct payment 3,088,488 3,179,493 6,267,981
Total 3,348,346 3,439,424 6,787,770
2015
Financing method / sources of financing Grant
No. 099848 Grant
No. H679-TJ Total Reimbursement of expenses 231,782 213,356 445,138 Direct payment 421,504 421,504 843,008
Total 653,286 634,860 1,288,146
7. Cumulative other income and expenses
Other income and expenses represent foreign exchange, interest income and commission expenses accrued by the serving bank on the ending balance of cash on special account.
8. Undrawn funds
As at 31 December 2016, the undrawn part of Grant No. 099848 and Grant No. H679-TJ was equal to 1,475,639 US dollars and 157 US dollars, respectively (as at 31 December 2015: 4,823,985 US dollars and 3,430,241 US dollars, respectively).
9. Legal cases
There were not any legal claims relating to the Project.
10. Events after reporting period
After the reporting period, the World Bank made direct payments to suppliers within Grant No. 099848 in the total amount of 351,822 US dollars according to the requests: No. 38, No. 39, No. 40 and No. 41 during the period from 20 March 2017 to 22 June 2017. These direct payments, however, do not require any adjustments in the financial statements for the year ended 31 December 2016.
“Central Asia Hydrometeorology Modernization Appendix to the financial statements Project (Tajikistan)”, Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2016
In US dollars
9
Appendix 1. Reconciliation of amounts presented by the PCU and reimbursable by the World
Bank and the IDA
For the year ended 31 December 2016:
Categories of expenditures Applications PCU World Bank
and IDA Variance Grant No. 099848 Goods, advisory services, including audit,
trainings, current expenses 19 2,000,066 2,000,066 − 20 42,434 42,434 − 21 133,412 133,412 −
22 123,080 123,080 − 23 52,614 52,614 −
24 86,763 86,763 − 25 66,162 66,162 − 26 259,858 259,858 − 27 20,960 20,960 − 28 57,704 57,704 − 29 8,780 8,780 − 29-2 35,119 35,119 − 36 360,000 360,000 − 37 101,394 101,394 −
Total 3,348,346 3,348,346 −
Grant No. H679-TJ Goods, advisory services, including audit,
trainings, current expenses 19 2,000,066 2,000,066 − 20 42,434 42,434 − 21 133,412 133,412 − 22 123,080 123,080 −
23 52,614 52,614 − 24 86,763 86,763 − 25 66,162 66,162 − 26 259,931 259,931 − 27 185,363 185,363 − 28 57,704 57,704 − 29 43,899 43,899 − 31 118,800 118,800 − 32 56,160 56,160 − 33 99,688 99,688 − 34 56,158 56,158 − 35 57,190 57,190 −
Total 3,439,424 3,439,424 −
6,787,770 6,787,770 −
“Central Asia Hydrometeorology Modernization Appendix to the financial statements Project (Tajikistan)”, Grant No. 099848, Grant No. H679-TJ for the year ended 31 December 2016
In US dollars
10
Appendix 1. Reconciliation of amounts presented by the PCU and reimbursable by the World
Bank and the IDA (continued)
For the year ended 31 December 2015:
Categories of expenditures Applications PCU World Bank
and IDA Variance Grant No. 099848 Goods, advisory services, including audit,
trainings, current expenses 14 109,062 109,062 −
15 31,262 31,262 −
16 231,782 231,782 −
17 148,680 148,680 −
18 132,500 132,500 −
Total 653,286 653,286 −
Grant No. H679-TJ Goods, advisory services, including audit,
trainings, current expenses 14 109,062 109,062 − 15 31,262 31,262 − 16 213,356 213,356 − 17 148,680 148,680 − 18 132,500 132,500 −
Total 634,860 634,860 −
1,288,146 1,288,146 −
