SCALING-UP THE PEER-TO-PEER LEARNING IN PUBLIC …documents.worldbank.org/curated/en/...Evaluate the...

SCALING-UP THE PEER-TO-PEER LOCAL SELF GOVER

LEARNING IN PUBLIC FINANCE AT THE NMENT LEVEL PROJECT

GRANT NUMBER TF016021

ProjectSTATE AGENCY FOR LOCAL SELF-GO

OF THE KYRGYZ

Implemented by ZERNMENT AND INTER-ETHNIC RELATIONS REPUBLIC (“SALSGIR”)

and in part of PROJECT IAAPL

WITHIN SA

SPECIAL PURPOSE

INDEPENDENT

For the period from 19

fiduciary issues, by the EMENTATION UNIT LSGIR (“PIU”)

FINANCIAL STATEMENTS

AND

AUDITOR’S REPORT

June 2015 to 23 March 2018

BISHKEK March 2018

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SCALING-UP THE PEER-TO-PEER THE LOCAL SELF GOVERNMENT

LEARNING IN PUBLIC FINANCE AT LEVEL PROJECT

GRANT NUMBER T F 0 1 6021

TABLE OF CONTENTS

STATEMENT OF MANAGEMENT’S RESPONSIBI AND PRESENTATION OF THE SPECIAL PURPO

INDEPENDENT AUDITOR’S REPORT

LITIES FOR THE PREPARATION SE FINANCIAL STATEMENTS

Page

3

4-5

SPECIAL PURPOSE FINANCIAL STATEMENTS For the period from 19 June 2015 to 23 Ma

Statement of cash receipts and payrrien

Statement of expenditures per compon

Notes to the special purpose financial s

rch 2018:

ts

ents

tatements

6

7

8-13

ANNEX 1. RECONCILIATION BETWEEN THE BY THE WORLD BANK

AMOUNTS SUBMITTED BY THE PIU AND DISBURSED14

2

STATEMENT OF M ANAG EM ENT’S RESPO NSIB IL IT IES FOR THE PREPARATION AND PRESENTATION OF THE SPEC IA L PURPO SE FINANCIAL STATEM ENTS

The Project Implementation Unit (“PIU special purpose financial statements Public Finance at the Local Self Govern Grant Agreement Grant Number TF01 receipts and payments, expenditures 2015 to 23 March 2018, in compli Accounting Standard “Financial Repo (IPSAS-Cash Basis) issued by the Inter Board (IPSASB) of the International Financial Management Manual for W (“WB Guidelines”).

) is responsible for the preparation of the of “Scaling-Up the Peer-to-Peer Learning in ment Level Project” (“Project”) financed by

6021, that present fairly the Project’s cash per components for the period from 19 June ance with the International Public Sector rting under the Cash Basis of Accounting" national Public Sector Accounting Standards Federation of Accountants (IFAC) and the orld Bank Financed Investment Operations

accIn preparing the special purpose financ « Properly selecting and applying

» Presenting information, includin provides relevant, reliable, compa

* Providing additional required disc 23 March 2018.

ial statements, PIU is responsible for: ounting policies;

accounting policies, in a manner rable and understandable information;

osures for the period from 19 June 2015 to

for:PIU’s Management is also responsible• Designing, implementing and ma

internal controls, throughout the

» Maintaining adequate accounting explain the Project’s transactions special purpose financial statemen Basis and the WB ;

• Taking such steps that are reason of the Project and to affirm that with the Grant Agreement Grant World Bank related guidelines, wi and only for the purposes for whic

• Preventing and detecting fraud and

The special purpose financial stateme March 2018 were authorized for issue a

On behalf of the PIU:

Musakozhoeva Berme Director of PIU

that

ntaining an effective and sound system of Project;

records that are sufficient to show and and which enable them to ensure that the ts of the Project comply with IPSAS - Cash

ably available to them to safeguard the assets funds received have been used in accordance dumber TF016021 dated 13 March 2015, and h due attention to economy and efficiency,

i the financing was provided; and

other errors.

nts for the period from 19 June 2015 to 23 n 30 March 2018 by the PIU.

Davlesova Mehriban Financial Manager of PIU

|BDO Tel: +37410 528899 E-rpail: [email protected]

w.bdoarmenia.am

INDEPENDENT

To the management of State Agency for Loc Kyrgyz Republic (“SALSGIR”)

Opinion

We have audited the special purpose financial in Public Finance at the Local Self Governmen Agreement Grant Number TF016021 dated 13 by the SALSGIR and in part of fiduciary issues the SALSGIR, which comprise the statement uses of funds by project activity for the perio the special purpose financial statements, includ

al Self-Government and Inter-Ethnic Relations of the

statements of “Scaling-Up the Peer-to-Peer Learning t Level Project” (“the Project”), financed by Grant March 2015 (“Grant Agreement”), and implemented

by the Project Implementation Unit (“PIU”) within cash receipts and payments and the statement of

d from 19 June 2015 to 23 March 2018, and notes to ing a summary of significant accounting policies.

of

In our opinion,1.

2.

3.

the accompanying financial statement? for the period from 19 June 2015 to 23 Sector Accounting Standard: Financial (IPSAS-Cash Basis); funds have been used in accordance w between the International Bank Development Association and the Kyrgy: due attention to economy and efficien was provided;supporting documents, records and a reimbursement of expenditures in

forith the conditions of the Grant Agreement concluded

Reconstruction and Development/International z Republic, and World Bank related guidelines, with

cy, and only for the purposes for which the financing

applications and reimbursed against a

4.

5.

Interim Unaudited Financial Statement: in agreement with the underlying books The Designated account used has been Grant Agreement, and World Bank relat Goods and Services financed have bee: and World Bank related guidelines.

Basis for Opinion

We conducted our audit in accordance with I International Auditing and Assurance Standa Accountants (IFAC). Our responsibilities under Responsibilities for the Audit of the Financial We are independent of the Project, of the International Ethics Standards Board for Acca (IESBA Code), and we have fulfilled our other We believe that the audit evidence we have о for our opinion.

BDO Armenia cjsc, is a member of BDO International Limited, a UK company limited by guarantee, and fornjs part of the international BOO network of independent member firms.

10 V. Sargsyan str.. Office 114, Yerevan, Armenia

AUDITOR’S REPORT

present fairly, in all material resect, the cash flows March 2018 in accordance with International Public Reporting Under the Cash Basis of Accounting,

ccounts have been maintained to support claims for curred. Expenditures included in the withdrawal re eligible for financing under the Grant Agreement, s (IFSs) issued by PIU during the reporting period are of account;maintained in accordance with the provision of the

ed guidelines.n procured in accordance with the Grant Agreement

nternational Standards on Auditing (ISAs) as issued by rds Board (IAASB) of the International Federation of those standards are further described in the Auditor’s Statements section of our report.

SALSGIR and of the PIU in accordance with the untants’ Code of Ethics for Professional Accountants ethical requirements in accordance with IESBA Code,

btained is sufficient and appropriate to provide a basis

Emphasis of Matter- Completion of the Project

Without qualifying our opinion, we draw your attention to Note 9 of these special purpose financial statements which discloses the completion of the Project as at reporting date.

mailto:[email protected]

Emphasis of Matter- Cash Basis of Accounting

We draw attention to Note 2 to the financial st are prepared in accordance with cash basis fra another purposes. Our opinion is not modified in

purpose financial statements in accordance wit

atements, which describes that financial statements mework, as a result, they may not be suitable for respect of this matter.

Responsibilities of the Management for the Financial Statements

Management of the PIU is responsible for the preparation and fair presentation of the special

Sector Accounting Standards Board (IPSASB) of the IFAC and Financial Management Manual for World Bank Financed Investment Operations (“WB Guidelines”), and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility for the Audit of the S

Our objectives are to obtain reasonable assu

misstatement when it exists. Misstatements ari if, individually or in the aggregate, they could

h IPSAS-Cash Basis issued by the International Public

Dedal Purpose Financial Statements

ranсe about whether the special purpose 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 high level of assurance, but is not a guaranty that an audit conducted in accordance with ISAs will always detect a material

se from fraud and error and are considered material reasonably be expected to influence the economic

decisions of users taken on the basis of these special purpose financial statements.As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the special purpose financial statements, whether due to fraud or етог, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide 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, but not for the purpose of expressingan opinion on the effectiveness of theEvaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disci Evaluate the overall presentation, str statements, including the disclosures, represent the underlying transactic presentation.

Dsures made by management.ucture and content of the special purpose financial and whether the special purpose financial statements ns and events in a manner that achieves fair

We communicate with management regarding of the audit and significant audit findings, in that we identify during our audit.

“BDO Armenia” CJSC 30 March 2018

nternal control.

among other matters, the planned scope and timing eluding any significant deficiencies in internal control

hachatryan, FCCA Engagement Partner

| BDO

Statement of cash receipts and paymentsFor the period from 19 June 2015 to 23 March 2018(Amounts are shown in U S dollars)

Scaiing-Up the Peer-to-Peer Learning in Public Finance at the Local Self Government Level ProjectGrant Number TF016021

Note Actual Budget VarianceCumulative as Cumulative as Cum ulative as

Reporting at Reporting at Reporting atperiod 23.Mar.2018 period 23.M ar.2018 period 23.M ar.2018

TOTAL OPENING CASH

Sources of Funds 8Grant Number TF016021 1,099,441 1,099,441TOTAL FUNDS 1,099,441 1,099,441

Project Expenditures (1) Goods, consultants’ services (including audit), and Training under the Project

TOTAL PROJECT EXPENDITURES1,089,441 1,089,441

1,089,441 1,089,4411,099,441 1,099,441 10,000

1,099,441 1.099.44110,000

1 П non У* r \ /Ч /Ч Лi u ,u u u

TOTAL CLOSING CASH

Musakozhoeva Bermet Director of PIU

10,000 10,000

Davlesova Mehriban Financial Manager of PIU

30 March 2018The notes on pages 8-13 form an integral part of these special purpose financial statements.

6

Statement of expenditures per componentsFor the period from 19 June 2015 to 23 March 2018 (Amounts are shown in U S dollars)

Scaling-Up the Peer-to-Peer Learning in Public Finance at the Local Self Government Level ProjectGrant Number TF016021

Actual

Com ponents

Part A: Project Management andCommunity of Practice Building Activities

Part B: Organization and Delivery of Resources Persons Learning Events

Part C: Organization and Delivery of Peer to Peer Learning at Local Level

Reporting Cumulative as period at 23.Mar.2018

Budget VarianceCumulative as

Reporting atperiod 23.Mar.2018

Reporting Cum ulative as period at 23.M ar.2018

312,251

259,192

473,634

312,251

259,192

473,634

312,251

259,192

473,634

312,251

259,192

473,634

30 March 2018The notes on pages 8-13 form an integral part of these special purpose financial statements.

7

Notes to the special purpose financial statementsFor the period from 19 June 2015 to 23 March 301 I

Scaling-lip the Peer-to-Peer Learning in Public Finance at the Local Self Government LevelProjectGrant Number TF016021

1. General information

1.1. The Project

The Grant Agreement Grant Number TF01 the Kyrgyz Republic and the Internatio International Development Association (“I from the Multi-Donor Programmatic Trust Management (“Trust Fund”) in the amou (“USD”) was provided to the Kyrgyz Repub The Grant Agreement became effective on

6021 was concluded on 13 March 2015 between Bank for Reconstruction and Development/

BRD”, “IDA”, “WB”), according to which a grant Fund for Europe and Central Asia Public Finance

not to exceed 1,099,441 Unites States dollars ic.19 June 2015.

nal

nt

The financing was provided for the lm Learning in Public Finance at the Local Self

plementation of “Scaling-Up the Peer-to-Peer Government Level Project” (the Project).

The Closing date of Grant Number TF0160 The Grace Period for submitting withdra the Closing date is two months following

1 is set 31 January 2018 (as updated), wal application for expenditures incurred before the Closing date.

1.2. The Project objectives

The objective of the Project is to support communities of practice and using these of local budget officers, elected heads members through innovative peer-to-peer

Project consists of the following parts:

the Kyrgyz Republic in establishing countrywide communities of practice to increase the capacity of local self-government units and local council learning approach.

Part I - Project Management and Communit Part II - Organization and Delivery of Resou Part III - Organization and Delivery of Peer Part IV - Activities Evaluation

у of Practice Building Activities rce Persons Learning Events to Peer Learning at Local Level

1.3. The Project Outcomes

10 training o f trainers and 10 regional meet In total 16 public finance management top including leadership and oratory, involving All materials and presentations for 1,359 the amount of more than 10 thousand cooics

ngs were conducted during the Project, cs were presented for beneficiaries o f the project,

23 expert trainers from 7 government agencies, project participants were summaries and issued in

The recipients o f the project beneficiaries members o f the practicing communities hav with questions answered were issued ir www.supple.kg.

y/ere contacted via the website www.suppl.kg, the e been contacted by the state authorities via letters

the hard copies and on the project website.

8

http://www.supple.kg

http://www.suppl.kg

Scaling-Up the Peer-to-Peer Learning in PuProjectGrant Number TF016021

Notes to the special purpose financial statementsFor the period from 19 June 2015 to 23 March 2018

blic Finance at the Local Self Government Level

1 A . The Project Budget and Financing

The Project is wholly financed by Grant Number TF016021, inclusive of taxes.

CategoryG rant Number

TF016021 Total

Grant Expenditure

Financing (inclusive of

taxes)USD USD %

(1) Goods, consultants’ services (including audit), and Training under the Project 1,099,441 1,099,441 100%

Total 1,099,441 1,099,441

(*) Updated budget was conformed on the W

1.5. Project Implementation

В letter dated 2 March 2017.

The Project Implementation Unit (“PIU”) w and Inter-Ethnic Relations of the Kyrgyz fiduciary part of the Project’s implementatio The PIU address is: office N302, Erkindik Blvd

ithin State Agency for Local Self-Government Republic (“SALSGIR”) is responsible for the n.. 58A, Bishkek, Kyrgyz Republic, 720040.

9




2. Summary of significant accounting po icies

2.1. Preparation and presentation of financial statements

The special purpose financial statements are prepared in accordance with theInternational Public Sector Accounting Stan of Accounting (IPSAS-Cash Basis), issued

dard: Financial Reporting Under the Cash Basis by the International Public Sector Accounting

Standards Board (IPSASB) of the International Federation of Accountants (IFAC), and presented in accordance with Financial Management Manual for World Bank Financed Investment Operations.

[The principal accounting policies applied financial statements are set out below. Thei the periods presented.

2.2 Cash basis of accounting

Project financing is recognised as a source Project expenditures are recognised as a made.

2.3 Reporting currency

in the preparation of these special purpose e policies have been consistently applied to all

of project funds when the cash is received, use of project funds when the payments are

The reporting currency of these special purpose financial statements is United States dollar (USD).The expenditures made in local currency, Ky at the exchange rate prevailing at the date о

rgyz Som (KGS), are translated into USD based the transaction.

The exchange rate defined by the National Bank of the Kyrgyz Republic is as follows: 23 March 2018: USD 1 = 68.1968 KGS.

4. Taxes

he taxes are paid in accordance with the tax regulation of the Kyrgyz Republic.

10


Notes to the special purpose financial staterr entsFor the period from 19 June 2015 to 23 March 2018


3. Summary of Summary Reports and SOEs

Withdrawalapplication

No

Withdrawal application value date

Payment categories Total

(1) Goods, services (inck

Training unc

consultants’ iding audit), and ler the Project

SUPPL-2 23.Dec.2015 108,234.14 108,234.14

SUPPL-3 04. Apr.2016 117,214.99 117,214.99

SUPPL-4 26.May.2016 114,862.49 114,862.49

SUPPL-5 25.Aug.2016 115,681.32 115,681.32

SUPPL-6 27.Jan.2017 125,733.08 125,733.08

7 28.Apr.2017 109,115.16 109,115.16

SUPPL-8 21.Aug.2017 114,784.15 114,784.15

SUPPL-9 10.Nov.2017 112,791.16 112,791.16

SUPPL-10 07.Mar.2018 139,074.34 139,074.34

11 16.Mar.2018 41,950.17 41,950.17

Total......... ' ‘1,099,441.00 1,099,441.00

Statement of Designated Account

Bank account number

Sank3ank location

Currency

1030120800006522

OJSC “COMMERCIAL BANK KYRGYZSTAN” 54 Togolok Moldo Street, Bishkek, Kyrgyz Republic

USD

Opening balance as at 19.June.2015

Add: opening discrepancy }. WB advance/replenishment

Less: Refund to WB from DA j. Present outstanding amount advanced to )A

. DA closing balance as at 23.Mar.2018

. Add: Amount of eligible expenditures paid

. Less: interest earned (if credited to DA)

. Total advance accounted for

10. Closing discrepancy (5)-(9)*

Grant No. TF016021 19 Juno 2.015-“ 23.Mar.2018

1,099,441

1,099,441

1,089,441

1,089,441

10,000

(*) Balance at escrow account for the final audit service (Note 6).

Scaling-Up the Peer-to-Peer Learning inProjectGrant Number TF016021

Piblic Finance at the Local Self Government Level


5. Statement of Financial Position

The Statement of Financial Position dis< Projects as at reporting date. It is pref recognized when they occur (and not only

doses assets, liabilities and net assets of the >ared in accrual basis that is transactions are when cash is received or paid).

Note2

As at :3 March

2018USD

ASSETSCashPrepayments

6 10,000

Total assets 10,000

LIABILITIESPayables 9 10,000

Total liabilities 10,000

NET ASSETS Cumulative incomeGrant No.TF016021 8 1,099,441

11,099,441

Cumulative expensesProject expenses 1,099,441

11,099,441

Total net assets -

6. CashUnderlyingCurrency

23 Marcl USI

1 20180

Escrow account* USD 10,000110,000

(*) Escrow account is opened at OJSC “Commer

7. Project Expenditures

cial Bank Kyrgyzstan” for paying the final audit fee.

Cumulative Expenditures

as at 23 March 2018 Total budget Execution

Category USD USD %(1) Goods, consultants’ services (including audit), and Training under the Project 1,089,441 1,099,441 99%

Total 1,089,441 1,099,441 99%

12


Scaling-Up the Peer-to-Peer Learning in Public Finance at the Local Self Government LevelProjectGrant Number TF016021

8. Financing

Grant Number TF016021

Advances/ (advance recovery) Direct Payments SOE and Summary Report Total

Total financing budget Percentage of finance provided as at 23 March 2018

Reportingperiod

USD

1,099,441

1,099,441

Cumulative as at 23 March

2018USD

1,099,441

1.099.4411.099.441

100%

Project completion

he Project was completed as at 31 January 2018 (“Closing Date”), and the Grace period is ?t 30 March 2018 (“Grace Period”),

owever, all transactions were completed as

at the date of signing these special purposat 23 March 2018 (“Reporting Date”),

financial statements:No expenditures related to the Project were incurred after the Closing Date; the payments made during the Grace period related to expenditures incurred before the Closing Date;No withdrawals from grant account were made after Reporting date;No expenditures related to the Project were submitted to the WB after the Reporting

date;There were no uncovered prepayments or payables outstanding to contractors related

to the Project as at the Reporting Date, except for final auditl service with contract

amount of USD 10,000;The outstanding cash balance at escrow account as at Reporting Date, USD 10,000, will be paid for final audit service, including the related non-resident income tax (Note 6); We are not aware about any pending or existing litigations against the Project.

Scaling-Up the Peer-to-Peer Learning in Pu ProjectGrant Number TF016021


ANNEX 1. R E C O N C I L I A T I O N B E T W E E N T H E A M O U N T S S U B M I T T E D BY T H E PIU AND DISBURSED BY T H E W O R L D BANK For the period from 19 June 2015 to 23 March 2018

(Amounts are shown in U S dollars)

Grant Number TF016021

Expenditure Category Appl. PIU T WB Difference

Advance (recovery)SU PPL-1 150,000.00 150,000.00.. ! '

-

SUPPL-10 (108,049.83) (108,049.83) -

11 (41,950.17) (41,950.17) -

- -

(1) Goods, consultants’ services (including audit), and Training under the Project

SUPPL.-2 117,552.04 108,234.14'

(9,317.90)*

SUPPL.-3 117,214.99 117,214.99 -

SUPPL-4 114,862.49 114,862.49 -

SUPPL-5 115,681.32 n 15,681.32 -

SUPPL-6 125,733.08 (l 25,733.08 -

7 109,115.16"... 1

09,115.16 -

SUPPL-8 114,784.15 114,784.15 -

SUPPL-9 112,791.16 12,791.16 -

SUPPL-10 139,074.34 39,074.34 -

11 41,950.17 41,950.17 -

1,108,758.90 1,099,441.00

Total 1,108,758.90 1,0'?9 ,441 .00

(*) A consultant contract had not been entered in WB Client Connection system at the time of application. It was resubmitted and approved in next SOE application.

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