STRENGTHENING PREPAREDNESS AND RESPONSE TO COVID-19 AT THE GRASSROOTS LEVEL IN VIETNAM PROJECT JSDF Grant No. TFOB6532 AUDITED FINANCIAL STATEMENTS For the period from 22 November 2021 to 31 December 2022 Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project JSDF Grant No. TFOB6532 CONTENTS Page PART I INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS Report of Institute for Social Development Studies 3 Independent Auditors' Report on the Financial Statements 4-5 Audited Financial statements $7 Statement of Funds and Disbursements 6 Statement of Funds Balance 7 Statement of Designated Account 8 Statement of Withdrawals 9 Notes to the Financial Statements 10-12 PART II INDEPENDENT AUDITORS' REPORT ON 13-14 THE INTERNAL CONTROL SYSTEM PART III INDEPENDENT AUDITORS' REPORT ON 15-16 THE COMPLIANCE PART IV MANAGEMENT LETTER 17-20 2 Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project JSDF Grant No. TFOB6532 REPORT OF INSTITUTE FOR SOCIAL DEVELOPMENT STUDIES Institute for Social Development Studies ("ISDS") presents this report and the Financial Statements of the Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project ("the Project") for the period from 22 November 2021 to 31 December 2022. The Project The Project is implemented under the JSDF Grant No. TFOB6532 dated 23 August 2021 ("the Agreement") between Institute for Social Development Studies and the International Bank for Reconstruction and Development/ International Development Association. Institute for Social Development Studies Members of Institute for Social Development Studies in the period and to the reporting date are: Mrs. Khuat Thu Hong Project Director Mrs. Vu Thi Thanh Nhan Chief accountant Auditors The auditors of AASC Limited have taken the audit of financial statements of the Project. Responsibilities of Irstitute for Social Development Studies Institute for Social Development Studies is responsible for preparing the project financial statements, including Statement of Funds and Disbursements, Statement of Funds balance, Statement of Designated Account and Statement of Withdrawals, which comply with the accounting policies described in the attached Notes to the Financial Statements. Institute for Social Development Studies assures that the accounting policies are appropriately selected and consistently applied. Institute for Social Development Studies assures that the accounting records were fully maintained to prepare the financial statements in accordance with the applied accounting policies and to disclose, with reasonable accuracy at any time, the financial position of the Project. Institute for Social Development Studies is also responsible for maintaining an effective internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and comply with relevant laws, regulations and other provisions of the funding agreement that could have a direct and material financial effect on th acial statements. 4behaff ift iute for Social Development Studies Khti iliftilo ng Project Director Hanoi, 15 May 2023 3 aasC sincce1991 No: 150523.015/BCTC.FIS2 INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS To: Institute for Social Development Studies Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project Opinion We have audited the accompanying financial statements of the Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project ("the Project") which comprise Statement of Funds balance as at 31 December 2022, Statement of Funds and Disbursements, Statement of Designated Account, Statement of Withdrawals, and Notes to the Financial Statements for the period from 22 November 2021 to 31 December 2022, including a summary of significant accounting policies. In our opinion: The accompanying financial statements give a true and far view of the financial position of the Project, including the balance of the Designated Account as at 31 December 2022, funds received and disbursements paid, movements of the Designated Account for the period from 22 November 2021 to 31 December 2022 in accordance with the basis of the principal accounting policies described in the Notes to the Financial Statements and the provisions of the JSDF Grant No. TFOB6532; In addition, with respect to Statements of Expenditure, adequate supporting documents have been fully maintained to support to the replenishment requests submitted to the World Bank. The disbursement are eligible and in right purposes of the JSDF Grant No. TFOB6532. Basis of 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 InstItute for Social Development Studies in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code"), and we have fulfilled our other ethical responsibilies 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. Responsibilities of Institute for Social Development Studies for the Financial Statements institute for Social Development Studies is responsible for the preparation of the financial statements in accordance with the principal accounting policies described in Notes to the Financial Statements, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Institute for Social Development Studies 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. T:(84) 24 3824 1990 I F:(84) 24 3825 3973 1 1 Le Phung Hieu, Hanoi, Vietnam t9 AASC AUDITING FIRM 4 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, 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 Institute for Social Development Studies; Conclude on the appropriateness of Institute for Social Development Studies'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. We communicate with Institute for Social Development Studies regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. C; \n,J --AAgC -Li Iih ed .C TY' SAASC a __________ __ o Do Nta ong Nguyen Pham Hung eneral Director Auditor in-charge CPA Registered No.: CPA Registered No.: 0744-2023-002-1 2893-2020-002-1 Hanoi, 15 May 2023 5 Strengthening Preparedness and Response to Covid-19 Financial Statements at the Grassroots Level in Vietnam Project Period from 22 November 2021 JSDF Grant No. TFOB6532 to 31 December 2022 STATEMENT OF FUNDS AND DISBURSEMENTS For the period from 22 November 2021 to 31 December 2022 Incurred and Accumulated Note to 31/12/2022 USD I. FUNDS 412,619.33 1. Funds reveived from the World Bank 3 412,619.33 II. DISBURSEMENTS 4 245,618.72 1. Consulting Services 118,007.71 2. Training and Workshops 51,392.88 3. Goods 19,204.81 4. Incremental Operating Costs 57,013.32 Ill. SURPLUS 167,000.61 Presented by: Designated Account (USD) 166,310.24 Cash on hand 690.37 167,000.61 6 Strengthening Preparedness and Response to Covid-19 Financial Statements at the Grassroots Level in Vietnam Project Period from 22 November 2021 JSDF Grant No. TFOB6532 to 31 December 2022 STATEMENT OF FUNDS BALANCE As at 31 December 2022 Note 31/12/2022 USD Surplus/(Deficit) Surplus in the period 167,000.61 Surplus as at closing 167,000.61 Represented by: Current assets 167,000.61 Cash on hand 690.37 Cash at bank 5 166,310.24 Net worth 167,000.61 7 Strengthening Preparedness and Response to Covid-19 Financial Statements at the Grassroots Level in Vietnam Project Period from 22 November 2021 JSDF Grant No. TFOB6532 to 31 December 2022 STATEMENT OF DESIGNATED ACCOUNT For the period: From 22/11/2021 to 31/12/2022 Account number: 1023246084 Bank: Joint Stock Commercial Bank For Foreign Trade Of Vietnam - Thang Long Branch Address: 148 Hoang Quoc Viet, Nghia Tan Ward, Cau Giay District, Hanoi Grant No: TFOB6532 Note USD PART A: ACTIVITIES Opening balance - Add: Total amounts deposited by the World Bank 412,552.33 Deduct: Total amounts withdrawn (246,242.09) Closing balance 166,310.24 PART B: RECONCILIATION 1. Amount advanced by the World Bank at the beginning of period - 2. Add: Amount supplemented by the World Bank 412,619.33 3. Deduct: Amount recovered by the World Bank (113,545.65) 4. Present outstanding amount advanced to 299,073.68 5. Closing balance 166,310.24 6. Add: Amounts withdrawn and not yet claimed (i) 132,073.07 Cash on hand 690.37 7. Total advances accounted for 299,073.68 (i) Requested for reimbursement in withdrawal application No. 05 dated 24/02/2023. 8 �� �i v С р � �у � г ` �'�v осnв rn +�+ 12 U � О с+7 с*) t0 � � �� иrnс�, су � � .� � r� су цэ т � оо л- са . •� а � � �`, г С г сб с+'� � � с � о N ' М �.ь.. � v С7 С7 М ' М г t7 ai? 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Background The Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project ("the Project") is implemented under the JSDF Grant No. TFOB6532 dated 23 August 2021 between Institute for Social Development Studies and the International Bank for Reconstruction and Developmentl International Development Association. Institute for Social Development Studies, formerly known as the Research Center for Social Development Issues, was established under the Decision No. 468[TC-LHH dated 27 May 2002, of the Presidium of the Central Council of the Union. Vietnam Science and Technology Association and renamed the Institute for Social Development Research under Decision No. 835/QD-LHH dated 20 November 2003. Total budget of the JSDF Grant No. TFOB6532 is USD 2,750,000. The main objective of the Project is to strengthen the capacity of the community, including community leaders, health, other sectors and social organizations, vulnerable groups in preparing and responding to the pandernic COVID-1 9 epidemic as well as other medical emergencies in the project provinces. The Project includes the following parts: o- Part 1: Building capacities at the grassroots level in preparedness and response to COVID-19 and other health emergencies; k- Part 2: Raising awareness and knowledge towards changing attitudes and behavior of the community through risk communication; Part 3: Developing and piloting models to support the most vulnerable groups in the preparedness and response to COVI D -19; P, Part 4: Project management and Administration, Monitoring and Evaluation, and Knowledge dissemination The Project officially came into operation since 22 November 2021 and is expected to close on 31 December 2024. The Project is managed by Institute for Social Development Studies, and its office is located Lot 81 - TT4 area, My Dinh Song Da urban area, My Dinh 1 ward, Nam Tu Liem, Hanoi. The Project is implemented in 03 provinces of Vinh Phuc, Khanh Hoa, Long An. 2. Principal Accounting Policies a. Basis of accounting The annual accounting period for the Project commenced from the 1st January to the 31st December. The first accounting period commenced from 22 November 2021 to 31 December 2022. The financial statements are prepared under cash basis. Accordingly, receipts are recognized by the Project when received, rather than the right to receive, and disbursements are recognized when being paid, rather than the obligation to pay. The financial statements are prepared in accordance with the requirements of the World Bank and presented in United State Dollar (USD). The principal accounting policies are summarized as below: b. Foreign currencies Transactions in Vietnam Dong (VND) are translated to United State Dollar (USD) under actual exchange rates of the serving bank on their transaction dates on FIFO method. 10 Strengthening Preparedness and Response to Covid-19 Financial Statements at the Grassroots Level in Vietnam Project Period from 22 November 2021 JSDF Grant No. TFOB6532 to 31 December 2022 c. Funds and Disbursements Funds: Funds received from the World Bank are recorded when remittance made into Designated Account or direct payment made to contractors/suppliers. Disbursements: Disbursements are recognized when payments are made by the Project to contractors/ suppliers. d. Designated account Designated Account is the deposit account in USD opened at Joint Stock Commercial Bank For Foreign Trade Of Vietnam - Thang Long Branch for the Project's activities. Payments made via the Designated Account are for eligible expenditures of the Project in accordance with the provisions of the JSDF Grant No. TF0B6532. 3. Funds received from the World Bank Incurred and Accumulated to 31/12/2022 USD Designated account Advance 412,619.33 412,619.33 4. Disbursements Disbursements by parts Period ended 31/12/2022 Completion Budget Actual rate USD USD Part 1: Building capacities at the grassroots 118,768,80 61,919.82 52.13% level in preparedness and response to COVID-19 and other health emergencies Part 2: Raising awareness and knowledge 154,049.20 48,865.25 31.72% towards changing attitudes and behavior of the community through risk communication Part 3: Developing and piloting models to 85,828.00 38,957.75 45.39% support the most vulnerable groups in the preparedness and response to COVID-19 Part 4: Project management and 134,321.68 95,875.90 71.38% Administration, Monitoring and Evaluation, and Knowledge dissemination 492,967.68 245,618.72 49.82% 11 Strengthening Preparedness and Response to Covid-19 Financial Statements at the Grassroots Level in Vietnam Project Period from 22 November 2021 JSDF Grant No. TFOB6532 to 31 December 2022 Disbursements by categories Period ended 31/12/2022 Completion Budget Actual rate USD USD Consulting Services 139,510.00 118,007.71 84.59% Training and Workshops 163,790.00 51,392.88 31.38% Goods 101,400.00 19,204.81 18.94% Incremental Operating Costs 88,267.68 57,013.32 64.59% 492,967,68 245,618.72 49.82% The Project's 100% eligible disbursements (including tax) in the categories of Consulting Services, Training and Workshops, Goods, Works and Incremental Operating Costs are financed by the JSDF Grant No. TF0B6532. 5. Cash at bank 31/12/2022 USD Designated Account (USD) 166,310.24 166,310.24 6. Subsequent events There have been no significant events occurring after the reporting date, which would require adjustments or disclosures to be made in the financial statements. 7. Approval of the Financial Statements The financial statements were approved by Institute for Social Development Studies for issuance on 15 May 2023. ,.N HY PC Ck VIE' N\ oNGHIE' 2$Y PHT- P,, Khuat Thu Hong Vu Thi Thanh Nhan Project Director Chief Accountant Hanoi, 15 May 2023 12 aasc No.: 150523.015/BCTC.FIS2 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL SYSTEM To: Institute for Social Development Studies Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project We have audited, in accordance with the International Standards on Auditing, the financial statements of the Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project ("the Project") for the period from 22 November 2021 to 31 December 2022 and issued the auditors' report thereon dated on 15 May 2023 expressing an opinion on those financial statements. In connection with our audit of the financial statements, we also examined the effectiveness of internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as well as the internal control over financial reporting for the period from 22 November 2021 to 31 December 2022. Responsibilities of institute for Social Development Studies Institute for Social Development Studies is responsible for maintaining an effective internal control over complance with requirements that could have a direct and material financial effect on the financial statements as well as the internal control over financial reporting. Auditor's Responsibility Our responsibility is to express an opinion on the effectiveness of internal control based on our examination Our examination was conducted in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised). That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project has maintained an effective internal control over compliance with requirements that could have a direct and material financial effect on the financial statements as wel as internal control over financial reporting. Our examination included obtaining an understanding, testing, and evaluating the design and operating effectiveness of the internal control, and performing other procedures as we considered necessary in the circumstances to obtain sufficient appropriate evidence to provide a basis for our opinion. Because of the inherent limitations of internal control over financial reporting, including the possib1 ity of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not to be prevented or detected on a regular basis. In addition, projections of any evaluation of the effectiveness of the internal control over financial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. T:(84) 24 38241990 I F:(84) 24 3825 3973 I 1 Le Phung Hieu, Hanoi, Vietnam AASC AUDITING FIRM 13 Auditors' opinion In our opinion, the Project has maintained an effective internal control over misstatements that could have a direct and material financial effect on the Project financial statements for the period from 22 November 2021 to 31 December 2022. AASC Limited nh Nguyen Pham Hung D a Director Auditor in-charge CPA Registered No.: CPA Registered No.: 0744-2023-002-1 2893-2020-002-1 Hanoi, 15 May 2023 14 aasc 5sice 1991 No.: 150523.015/BCTC.FIS2 INDEPENDENT AUDITORS' REPORT ON THE COMPLIANCE To: Institute for Social Development Studies Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project We have audited, in accordance with International Standards on Auditing, the financial statements of Strengthening Preparedness and Response to Covld-19 at the Grassroots Level in Vietnam Project ("the Project") for the period from 22 November 2021 to 31 December 2022 and issued the auditors' report thereon dated 15 May 2023 expressing an opinion on those financial statements. In connection with the audit of the financial statements, we also performed procedures on the Project's compliance with the JSDF Grant No. TFOB6532, law and regulations that have a direct and material effect on the Project's financial statements for the period from 22 November 2021 to 31 December 2022 ("the Requirements"). Responsibilities of Institute for Social Development Studies Institute for Social Development Studies is responsible for complying with the Requirements applicable to the Project. Auditor'S Responsibility Cur responsibility is to express an opinion on the Project's compliance with the Requirements based on our procedures. We limited our tests of compliance to the Requirements, and we did not test compliance with all laws and regulations applicable to the Project. We performed our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised). That standard requires that we comply with ethical requirements and plan and perform our procedures to obtain reasonable assurance about whether, in all material respects, the Project has complied with the Requirements. An assurance engagement to report on the compliance with the Requirements at the Project involves performing procedures to obtain evidence about whether the Project's activities are free of material non-compliance with the Requirements, including obtaining an understanding of the internal control relevant to the Project's compliance with the Requirements, The procedures selected depend on the auditors' judgment, including the assessment of risks that the Project does not comply with the Requirements and whether such non-compliance could have a direct and material financial effect on the Project's financial statements. Our procedures included testing the compliance with the Requirements we consider necessary to provide a reasonable assurance that the Requirements are complied by the Project We beieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion T:(84) 24 38241990 I F:(84) 24 3825 3973 I 1 Le Phung Hieu, Hano, Vietnam AASCAUDITING FIRM 15 Auditors' opinion In our opinion, the Project has complied with the Requirements that could have a direct and material financial effect on the Project's financial statements for the period from 22 November 2021 to 31 December 2022. iied 0 0 AASC l4i uong Nguyen Pham Hung epUty General Director Auditor in-charge CPA Registered No.: CPA Registered No.: 0744-2023-002-1 2893-2020-002-1 Hanoi, 15 May 2023 16 aasc s[ricul1991 Hanoi, 15 May 2023 To: Institute for Social Development Studies Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Project We have conducted the audit of the financial statements of Strengthening Preparedness and Response to Covid-19 at the Grassroots Level in Vietnam Projec ("the Project") for the period from 22 November 2021 to 31 December 2022. During the course of our engagement, we reviewed the accounting procedures and internal controls, and examined the compliances with laws, regulations of the JSDF Grant No. TFOB6532, Accordingly, we enclose a memorandum of the points noted by us during our audit together with recommendations thereon. We have discussed the matters with the Project Director, and the responses were incorporated in our memorandum. We would also like to extend our sincere thanks to the Project Director, the Head of Financial department and your staffs for the co-operation you all have extended to us during our recent audit visit. We look forward to working with you again soon, and in providing you with the required assistance, if any, in your future endeavors. C CI. T Y* AA Dep fferal Director T:(84) 24 3824 1990 1 F:(84) 24 3825 3973 1 1 Le Phung Hieu, Hanoi, Vietnam - - AASC AUD3ITING FIRM 1