]OINT VENTURE OF VIETNAM AUDMNG AND EVALUATION COMPANY LIMITED AND NEXIA STT COMPA]IY LIMITED a C.)}!P NY LINIITED Nexia STT Ministry of Agriculture and Rural Development Project "Forest Sector Modernization and Coastal Resilience Enhancement" Portions implemented by the Project Management unit of Component 1 Under Financing Agreement - Credit number 6079-VN between the International Development Association and the Government of the Socialist Republic of Vietnam Audited Financial Statements Period from 1 January 2023 to 30 April 2024 MINISTRY OF AGRICULTURE AND RURAT DEVELOPiIENT Project "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agtement - Credrt number 6079-VN futwen the Intemational Development Ass&iatton and the @vemment of the Socialgt Republk of Vietnam PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 Contents STATEMENT OF THE PROJECT MANAGEMENT UNIT..........,,., 2 STATEMENT OF THE PROJECT MANAGEMENT UNIT ON COMPLIANCE 4 INDEPENDENT AUDITORS' REPORT 10 STATEMENT OF FINANCIAL POSMON L2 STATEMENT OF INCOME AND EXPENDMJRES L4 STATEMENT OF SOURCES AND USES OF FUNDS...... 15 STATEMENT OF DISBURSEMENTS BY CATEGORY 16 NOTES TO fiE FINANCTAL STATEMENTS t7 o * 1 MINISTRY OF AGRICULTURE AND RURAL DEVELOPi,IENT Project "Forest Sector Modernization and Coastal Resilience Enhancemenr' Under Financing Agrement - Ctdit number 6079-VN between the Intemational Development Assniation and the Govemment of the Socialist Republic of Vietnam PORTIONS IMPLEMENTED BY THE PRO]ECT MANAGEMENT UNIT OF COMPONENT 1 STATEMENT OF THE PROJECT MANAGEMENT UNIT The Project Management Unit of Component 1 under the Project "Forest Sector Modernization and Coastal Resilience Enhancemenf' ('the Project Management Unif) submits this report together with the audited Financial Statements of the Project "Forest Sector Modernization and Coastal Resilience Enhancemenf'- Portions implemented by the Project Management Unit of component 1 ("the Projecf) for the period from 1 January 2023 to 30 April 2024. The Project anagcment Unit Members of the Project Management Unit responsible for the project management for the period from 1 January 2023 to 30 April 2024 and at the date of this report were as follows: Mr. Trieu Van Luc Dire{tot (appointed on 20/6/2023) Mr. Nguyen Quoc Tri Djr.e(tor (resignd on 20/6/2023) Mr. Nguyen Trong Bang Deputy Director Mr. Nguyen Duy Thanh Accountant in charge Auditors The Financial Statements of the Project for the period from I January 2023 to 30 April 2024 have been audited by Joint venture of Vietnam Auditing and Evaluation Crmpany Limited and ND(A STT Company Limited. Responsibility of the Project tlanagement Unit in respect of the Financial Statements The Project Management Unit is responsible for preparing the Financial StatemenLs of the Project, which comprise the Statement of Financial Position as at 30 April 2024, the Statement of Income and Expenditures, the Statement of Sources and Uses of Funds, the Statement of Disbursements by Gtegory, the statement of Designated Account, and the sbtement of withdrawals for the period from 1 January 2023 to 30 April 2024 and the Notes to the Financial statements, including a summary of significant accounting policies which give a true and fair view of the financial position of : the Project and its designated account balance as at 30 April 2024, as well as of the income and 1NH expenditures, sources and uses of funds of the Project, designated account movements and fund wiihdrawals of the Project for the period from 1 lanuary 2023 to 30 April 2024, in accordance with the accounting policies and the covenants contained in Financing Agreement - Credit number 6079- VN. In preparing the Financial Statements, the Project Management Unit is required to: )gr . Select suitable accounting policies and then apply them consistently; o L Make judgments and estimates that are reasonable and prudent; \=orc . State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the Financial Statements; . prepare the Financial StatemenE on the going concern basis unless it is inappropriate to presume that the Project will continue in operation; and . Design and maintain an effective internal control over compliance with requirements that could havJa direct and material financial effect on the Financial Statements, as well as over financial reporting for the purpose of properly preparing and presenting the Financial statem€nts so as to miniriise errors and frauds; and take responsibility for its assertion as to the effectiveness of such internal control. 2 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT Project "Forest Sector Modernization and Coastal Resilience Enhancement" tJnder Financing Agrement - Credit number 6079-VN between the International Development Association and the Government of the Socialist Republic of Vietnam PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 STATEMENT OF THE PROJECT MANAGEME]TT UNIT (CONIINUED) The Project Management Unit is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Proiect and that the Financial Statements comply with the accounting pollcies set out in Note 2 to the Financial Statements. The Project Management Unit is responsible for ensuring that the funds have been used as intended for the Project and for complying with Financing Agreement - Credit number 5079-VN as well as laws and regulations applicable to the Project. The Proiect Management Unit is also responsible for safeguarding the assets of the Project and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities. The Project Management Unit confirps lhat they have complied with the above requirements in preparing the Financial Sratements {r/ half of Management Unit, o !u A rrrit c Hanoi, 23 May 2024 R 3Xti fT 4 3 MINISTRY OF AGRICULTURE AND RURAL DEVETOPMENT Project "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agrenent - Mit number 6079-VN btwen the International Development Aswiafron aN the @vemment of the fuialist Republic of Vieham PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 STATEMENT OF THE PROJECT MANAGEMENT UNIT ON COMPLIANCE The Project Management Unit is responsible for complying wih Financing Agreement - Credit number 6079-VN, laws and regulations applicable to the Project. The Project Management Unit confirms the following: An effective internal control has been designed and maintained over compliance with Financing Agreement - credit number 6079-VN, laws and regulations applicable to the Project; and The Project has complied with laws, regulations, bidding processes as well as other regulations - under Financing Agreement Credit number 6079-VN, that could have a direct and material financial effqgt 9n the Projecfs Financial Statements for the period from 1 lanuary 2023 to 30 apritzoz+$/ half of Management Unit, B Ngr q^ t c Ditrtor Hanoi, 23 May 2024 D 4 loint venture of Vietnam Auditing and Evaluation Company Limited and NEXIA STT Company Limited Vietnam Auditing and Evaluation Company Limited ND(IA STT Company Limited 11b Floor, Song Da Tower, No. 165 Cau Giay road, 19s Floor, C'land Tower, No. 156 Xa Dan II, Hanoi Cau Giay district, Nam Dong ward, Dong Da district, Hanoi Tel: (84-24) 6267049U4921493 relr (84-24) 39 3s0 990 Fax: (84-24) 62 670 494 Faxi (84-24\ 39 350 991 INDEPENDENT AUDITORS' REPORT on the Project Financial Statements TO: The Management Board for Forestry Projects The Project uanagement Unit of Component I of the Proiect "Forest Sector Modernization and Coastal Resilience Enhancement" Audit oplnion We have audited the accompanying Statement of Financial Position as at 30 April 2024, and the Statement of Income and Exp€nditures, the Statement of Sources and Uses of Funds, the Statement of Disbursements by category for the period from 1 lanuary 2023 to 30 Aptil 2oz4 ("the Financial Statements'), and a summary of significant accounting policies with the Notes to the Financial Statements of the Project "Forest Sector Modernization and Coastal Resilience Enhancement" - Portions implemented by the Project Management Unit of Component 1 Cthe Projecf) using counterpart funds, In our opinion, in all material respects, the Statement of Financial Position, the Statement of Income and Expenditures, the Statement of Sources and Uses of Funds, and the Statement of Disbursements by Category give a true and fair view of the financial position of the Project as at 30 April 2024, and of its income and expenditures, receipts and disbursements for the period from 1 January 2023 to 30 April 2024 in conformity with the accounting policies set out in Note 2 to the Financial Statements. Basis for Opinion we conducted our audit in accordance with International standards on Auditing cISAsl. Our responsibilities under those standards are further described in the Audr'torc' Responsibilities for the Audit of the Financial Statemenb section of our report. We are independent of the Project in accordance with the ethical requirements that are relevant to our audit of the Financial Statements in accordance with International Ethics Standards, and we have fulfilled our other ethical responsibilities in accordance with these requirements, We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. o * o c Joint venture of Vietnam Auditing and Evaluation Company Lamited and NEXIA STT Company Limlt€d Vietnam Auditing and Evaluation Company Limited NDCA STT Company Limited 11s Floor, Song Da Tower, No. 165 Cau Giay road, 19h Floor, C'land Tower, No. 155 Xa Dan II, Cau Giay district, Hanoi Nam Dong ward, Dong Da district, Hanoi Tel: (84-24) 62670 49U4921493 Tel: (84-24) 39 3s0 990 Fax: (84-24) 62 670 494 Faxi (84-24\ 39 350 991 Responsibilities of the Project Management Unit for the Financial Statements The Project Management Unit is responsible for the preparation and fair presentation of the Financial Statements in accordance with the accounting policies set out in Note 2 to the Financial Statements, and For such internal control as the Project Management Unit determines is necessary to enable the preparation of the Financial Statements that is free from material misstatement, whether due to fraud or error. 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 audito/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 muld reasonably be expected to anfluence the economic decisions of users taken on the basis of the Financial Statements. As part of an audit in accordance with ISAS, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: . Identiff 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 risk, 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. o Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. . Evaluate the appropriateness of accounting policies used and related disclosures made by the Project Management Unit, . 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. f D \ g ,oint venturc of Vietnam Auditing and Eyaluation Company Limited and NEXIA STT Company Lamited Limited Vietnam Auditing and Evaluation Company ND(IA STT Company Limited road, 19s Floor, Cland Tower, No. 156 Xa Dan II, 116 Floor, Song Da Tower, No. 165 Cau Giay Cau Giay district. Hanoi Nam Dong ward, Dong Da district, Hanoi Tel: (84-24) 6267049114921493 Tel: (84-24) 39 3s0 990 Fax: (84-24) 62 670 494 Fax: (84-24\ 39 350 991 . Conclude on the appropriateness of managementt use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertalnty 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 auditot's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modifu our opinion, Our conclusions are based on the audit evidence obtained up to the date of our auditor's report, However, future events or conditions may cause the Project to cease to continue as a going concern. We communicate with those charged with governance and the Poect Management Unit 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 identifo during our audit. We also provide those charged with Project Management Unit with a statement that we have complied with the relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Project Management Unit, we determine those matters that of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. we describe these matters in our audito/s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report b€cause the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Limited Luong Thi Mai Thanh anh Trung Auditor Audit Practising Registration Certificate No. 4561-2023-225-1 No. 0518-2023-225-l NH Audit Report No.: 111/2024IHN-AUD/WB FMCR PMU1 N Hanoi, 23 May 2024 5 Elr Joint ventur€ of Vietnam Auditing and Evaluation Company Limited and NEXIA STT Company Llmited Limited vietnam Auditing and Evaluation Crmpany NEXIA STT @mpany Limited road, 196 Floor, C'land Tower, No. 155 Xa Dan II, 1ls Floor, Song Da Tower, No. 165 Cau Giay Hanoi Cau Giay district, Nam Dong ward, Dong Da district, Hanoi Tel: (84-24) 6267O49U4921493 Tel: (84-24) 39 3s0 990 494 Fax: (84-24) 62 570 Fax: (84-24) 39 350 991 INDEPENDET{T AUDITORS' REPORT On compliance with Applicable Laws, Regulations, Procurement Procedures and Other Provisions of the Financing Agreement To: The Management Board for Forestry Projects The Project Management Unit of Component 1 under the Project "Forest Sector Modernization and Coastal Resilience Enhancement" Audit opinion We have audited the compliance with the Applicable Laws, Regulations, Procurement Procedures and Other Provisions of Financing Agreement - Credit number 6079-VN of the Poect "furest Sector Modernization and Coastal Resilience EnhancemenY - Portions implemented by the Project Management Unit of Component 1 ("the Projecf) implemented by counterpart funds for the period from 1 January 2023 to 30 Aptil2024. In our opinion. the Project was, in all material respects, in compliance with the applicable laws, regulations, the procurement procedures and other provisions of Financing Agreement - Credit number 6079-VN, that could have a direct and material financial effects on the Projecfs Financial Statements for the period from 1 January 2023 to 30 Aptil2024. Basis for opinion We conducted our engagement in accordance with the International Standard on Assurance Engagements 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information", issued by the International Auditing and Assurance Standards Board. Our responsibility is to express an opinion on the Projecfs compliance with the requirements, based on our procedures. We are independent of the Project in accordance with the ethical requirements that are relevant to our audit of the compliance with the applicable laws, regulations, and other provisions, and we have fulfilled our other ethical responsibilities in accordance with these requiremenb. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 'H Responsibilities of the Project Management Unit e The Project Management Unit is responsible for compliance with the Applicable Laws, Regulations, r - Procurement Procedures and Other Provisions of Financing Agreement Credit number 6079-VN, that could have a direct and material effect on the Project's Financial Statements for the period from lg 1 January 2023 to 30 April 2024. Joint venture of Vietnam Auditing and Eyaluation Company Limited and NEXIA STT Company Limited Vietnam Auditing and Evaluation Company Limited NEXIA STT Company Limited 11b Floor, Song Da Tower, No. 155 Cau Giay road, 196 Floor, C'land Tower, No. 156 Xa Dan II, Cau Giay district,Hanoi Nam Dong ward, Dong Da district, Hanoi Tel: (84-24) 62670 49U4921493 Tel: (84-24) 39 350 990 Fax: (84-24) 62 670 494 Faxi (84-24\ 39 350 991 Auditors' Responsibilities Our responsibility is to express an opinion on the Projecfs compliance with the requirements, based on our procedures. We conducted our engagement in accordance with International Standard on Assurance Engagements 3000, "Assurance Engagements other than Audits or Reviews of Historical Financial Information", issued by the International Audlting and Assurance Standards Board. That standard requires that we comply with ethical requirements, 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 Projectt compliance with regulatory and contractual requirements involves performing procedures to obtain evidence about whether the ProjecHs activities are free of material noncompliance with the requirements. The procedures selected depend on the auditors' judgment, including the assessment of risks that the Project does not comply with the requirements and whether such noncompliance could have a direct and material financial effect on the Projecfs Financlal Statements. Our procedures included testing the compliance with the requirements that we consider necessary to provide reasonable assurance that the nts are compiled by the Project. 1 NHfl xta pany Limited Luong Thi Mai Thanh nh Trung Auditor Audit Practising Registration Certificate Audit Practising Registration Certificate No. 4561-2023-225-l No. 0518-2023-225-1 Audit Report No,: 111/2024|HN-AUD/WB FMCR PMU1 Hanoi, 23 May 2024 a xli T 4 ,oint venturc of Vletnam Auditing and Evaluation Gompany Limit€d and NEXIA STT Company Llmlted Vietnam Auditing and Evaluation Company Limited NEXIA STT Company Limited 11s Floor, Song Da Tower. No. 165 Cau Giay road, 19s Floor, C'land Tower, No. 156 xa Dan II, cau Giay district,Hanoi Nam Dong ward, Dong Da district, Hanoi Tel: (84-24) 52670 49114921493 Tel: (84-24) 39 350 990 Fax: (84-24) 62 570 494 Fax: (84-24) 39 350 991 INDEPENDENT AUDITORS' REPORT On the effectiveness of intemal control over compliance with requirements that could have a direct and material financial effect on the Financial Statements as well as of internal control over financial reporting TO: The }lanagement Board for For€stry Proiectt The Project Management Unit of Component 1 under the Project'Forest Sector Modemization and Coastal Resllience Enhanc€ment" Audit opinion We have audited, in accordance with International Standards on Auditing, the Financial Statements for the poect "Forest Sector Modernization and Coastal Resilience Enhancemenf'- Portions implemented by the Project Management unit of component 1 c'the Project) implemented by the counterpart funds for the period from 1 January 2023 to 30 April 2024 and issued the auditors' report thereon expressing an unqualifid opinion on the Financial Statements' In connection with our audit of the Project's Financial Statements, we also examined the effectiveness of internal control over compliance with requirements that could have a direct and material financial effect on the Financial Statements as well as of internal control over financial reporting. jnternal control over In our opinion, the Project has maintained, in all material respecG, effective compliance witiS requirernents that could have a direct and material Rnancial effect on the Projecfs Financial Statements as well as of internal control over financial reporting for the period from 1 January 2023 to 30 April 2024, Basis for Opinlon We conducted our engagement in accordance with International Standard on Assurance Engagements 3OOO. Our responsibility is tO express an opinion on the effectiveness of internal control over compliance witi requirements that could have a direct and material financial effect on the Financial Statements as well as internal control over financial reporting based on our examination' We are independent of the project in accordance with the ethical requirements that are relevant to the audit to evaluate the effectiveness of internal controls on the compliance of the requirements that may )., directly and materially affect the Financial statements as well as internal control purposes in pr"p"ration of the finincial statements, and we have fulfilled our other ethical responsibilities in I and iccordance with these requirements. We believe that the evidence we have obtained is sufficient appropriate to provide a basis for our opinion. Joint venture of vietnam Auditing and Evaluation Company Limited and ilEXIA STT Company Limited Vietnam Auditing and Evaluation Company Limited NEXIA STT Company Limited l1b Floor, Song Da Tower, No. 165 Cau Giay road, 19s Floor, C'land Tower, No. 156 Xa Dan II, Gu Giay district, Hanoi Nam Dong ward, Dong Da district, Hanoi Tel: (84-24) 62670 49114921493 Tel: (84-24) 39 3s0 990 Fax: (84-24) 62 670 494 Faxi (84-24) 39 350 991 Responsibilities of the Project Management Unit The Project Management Unit is responsible for designing and maintaining effective internal control over compliance with requirements that could have a direct and material financial effect on the Financial Statements as well as over financial reporting for the purpose of properly preparing and presenting the Financial Statements so as to minimise errors and frauds; and take responsibility for its assertions as to the effectiveness of such internal control, Auditors' Responsibilities Our responsibility is to express an opinion on the effectiveness of internal control over compliance with requirements that could have a direct and material financial effect on the Financial Statements as well as internal control over financial reporting based on our examination. Our examination was conducted in accordance with International Standard on Assurance Engagements 3000, accordingly, included obtaining an understanding of internal control over compliance with requirements that could have a direct and material financial effect on the Financial Statements as well as of internal control over financial reporting, testing, and evaluating the design and operating effectiveness of the internal control, and performing such other procedures as we considered necessary in the circumstances to obtain sufficient appropriate evidence on which to base our opinion. Because of inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not to be prevented or detected on a regular basis. Also, projections of any evaluation of the effectiveness of the internal control over flnancial reporting to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of com with the policies or procedures may deteriorate. 1 NHH () * ,o pany Limited Luong Thi Mai Thanh nh Trung Auditor Audit Practising Reg istration Certificate Audit Practising Reg No. 4561-2023-225-1 No. 0518-2023-225-1 Audit Report No.: 11U2024/HN-AUD/WB FMCR PMU1 Hanoi, 23 May 2024 iIINISTRY OF AGRICULTURE AI{D RURAL DEVELOPMENT Project "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agrement - Ctdtt number 6079-VN between the Internatbnal Development Ass$iation and the @vernment of the fucialist Republic of Vietnam PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 STATEMENT OF FII{ANCIAI POSITION As at 30 April 2024 As at As at Note 301412024 3Ut2l2022 VND VND ASSETS Current assets 280,856,100 Other receivables 4 280,856,100 Fixed assets 128,076,396 t63,224,297 Tangible fixed assets 116,076,396 r40,474,297 Ast 297668,000 294,66q000 Afiumulatd deptffiation (178,s91,504) (154,191703) Intangible assets 12,000,000 22,750,000 Ast $,00q000 43,000,000 Anumulatd amoftiet@n (31,000,000) eq2sq000) Project implementation expenditures 17,735,306,093 17,642,533,493 Project implementation expenditures 17,735,306,093 77,642,533,493 TOTAL ASSETS 17,853,3821489 18,086,6131890 The acampanying notes form an integral Nrt of the financial statements !2 MINISTRY OF AGRICULTURE AND RURAL DEVETOPMENT Project "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agrement - Credit number 6079-VN between the International Development Association and the Government of the fuialist Republt? of Vietnam PORNONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 STATEMENT OF FINANCIAL POSITION (CONTINUED) As at 30 April 2024 As at As at Note 3(Jl4l2024 3UL2l2022 VND VND RESOURCES Liabilities 280,856,100 Payables to contractors/suppliers 5 256,794,000 Other payables 5 24,062,700 Fund balance 17,863,382,489 17,8O5,757 t79O Counterpart funds 17,735,306,093 L7,642,533,493 Funds for fixed assets acquisition r28,076,396 t63,224,297 TOTAL RESOURCES L7,863p82,489 18,084613,890 Prepared by: B L HgP HI H6A NGATIH I T[{H C c VE Nguyen Duy Thanh Trieu Van Luc AcLountant in charge Diretor Hanoi, 23 May 2024 I c o * \ The accompnying notes form an integ@l part of the financial statemenE 13 MINISTRY OF AGRICULTURE AI{D RURAL DEVELOPMEilT Project "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agrtrment - Crdit numtur 6079-VN between the Intemational Development Association and the @vernment of the tuialist Republic of Vietnam PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 STATEMENT OF INCOME AND EXPENDITURES Period from 1 January 2023 to 30 April2024 Period Note frc'ilI.Ull2023 Accumulated to Accumulated to to 3Ol4l2o24 3tlt2l2022 30l4l2024 VND vilD VND INCOME IDA funds Counterpart funds 3 92,772,600 17,642,533,493 17,735,306,093 92,772,60,0 17,644533,493 17,735,306,093 EXPENDITURES Component 1: Enabling effective coastal forest 92172,600 17,642,s33,493 L7,735,306,o9'3 management 92,772,600 t7,642,533,493 17,735,306,093 (DEFICTD/SURPLUS OF INCOME AGAINST EXPENDITURES Prepared by: by E^l lAll vl I ILal ItE Nguyen Duy Thanh Van Luc Ia A$ounbnt in charge Director i/ Hanoi, 23 May 2024 ( ( The accompnying notes form an intqral paft of the financial statemenb l4 rt I o .,t d) E 6 a da LN N ra' Eo o P o;6 ;i o'P s p= la "t Lri FI "i t t o d ni N lY) llt I't \ N * trr\ f I !t o o E Fi lYt I lY) ,i- '\N lvt tYt e( o E or o O e- tto oer s t dPd9 o ; o;6 F {, 8.= l't .n' gt nI 0l s ta b> (n o {rr\ \ I\N "i tYt ri * = E h N * E tt- \ I = (J Io E !o s Eo EZ \ o € !J * o I a cro \ tn !i Eo R R RR 6 aa= b G o 0 N = ({id L; s z E3 q rr' 10- s s f n n| N "i .s r!N o t\ nln} aa l\an 'NN s I q l!o oN GI o t B \ l,= nl ,S Hi o t€o E o R FR a AJ s a\ o9 Za E.f>$B lD- di $B lo- i'i b ! I - o !\) EE (J: E !o s d: Ea LN= *F 6s l,... .E A 6 IU EZ a 589 tttr o tr Etb op ct s ct, Llo!E zx .i o z & o EEE= uJ E ur- Bt EeiE ^CJ Eee dts q S t\ d; \f-rN to!- N E g !J @roN F. I q.) E (J o = o s d u p \ o !o E G I ur Cz =6 It N o I o 3H I; \I >E !Oo .c \ p l,: o o o E F. F. E 2o t! rJ E6 @ N @ N \ s\ (o (o 3 g E> -o .J s. oH QF =R H! ri N N c o \fr :z EF o b t qJ S AJ .\ XR !0E ti ^\ \) LS= t.\ o !o o o rt 5SR E\Lr ct- e rri o = c o F. o F. tlI @ @ .o U tuo oE r!= o lLa N ro N \o LloSE .E !.i 2+s2 urfitif EF o- 3 F\ af) N o t En,Sr- 3 o Pt TETE d;oi9 It o t p Ll,l d 9' 3 o.\t JA\o= tD (, r UI ! Eo E attE\ EZ p J 58{H a R :EFH izcSo- \ I <( .9 P r-r-r UI iE r\ +- d.NVF rEl! ) trbrto fEb6 BE .9ts J!?FUl >c) UZNF I;{fr c,u.9= E f tsL HE : olo d.gE -s q.) + N i o rENA t! rf UJ(JC E -o !o 6 {I = N o o 6S -8 EEEE o z ,-r N lft F L o- o CIT \J z\ o I =ESR MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT Project "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agrement - Ctdit number 6079-VN betwen the Intemational Development AssNiation and the Government of the fucialist Republic of Vietnam PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 NOTES TO THE FINANCIAL STATEMENTS Period from 1 January 2023 to 30 Aptil2024 1 Description of the Project The Project "Forest Sector Modernization and Coastal Resilience Enhancement" (\he Projecr) is implemented by the Ministry of Agriculture and Rural Development under Financing Agreement - Credit number 6079-VN dated 03 August 2018 signed betrveen the Government of the Socialist Republic of vietnam and the International Development Association ("IDA',). According to the Financing Agreement, the World Bank provided grants through IDA with a total value of 109,500,000 special drawing rights (SDR), equivalent to USD150,000,000 to the Project. The Projecfs overall objective is to improve coastal forest management in the project provinces to enhance coasbl resilience to extreme weather events and sea level rise. According to Decision No. 5995/QD-BNN-HTQT dated 29 December 2023 of the Ministry of Agriculture and Ruril Development on adjusting investment in the Project "Forest Sector Modernization and Coastal Resilience EnhancemenY', the specific development goals of the Project are changed as follows: > Effective organization of resource management; > plant, take care and manage forests effectively to increase the ability to respond to climate change; and > Create mechanisms to encourage households, communities, businesses, and local governments to participate in the sustainable management and protection of existing resources' The total revised investment budget of the Project "Forest Sector Modernization and Coastal Resilience Enhancemeny under Decision No. 138ZQD-TT9 dated 23 October 2018 of the Prime Minister was USD195 million, of which IDA fund was USD15O million, local and national counterpart funds were usD45 million. Acmrding to Decision No. 2198/QD-BNN-KH dated 13 June 2019 of the Ministry of Agriculture and Rural D6velopment, the total investment funds for the portions implemented by the Project Management Unit of Component I was USD3 million. According to the Financing Agreement, the Project was implemented no later than 90 days after 03 ergd Ztfe (signing dat6 oiFinancing Agreement) and expected to be completed on 3l December zoia lcreait ciosing 6ate;. rhe project wai granted a disbursement grace period of 4 months, until 30 \ T April 2024. According to Decision No. 5996/QD-BNN-HTQT dated 29 December 2023 of the Ministry of Agriculture ana nurit Development on adjusting invesiment in the Project "Forest Sector Modernization and Coastal Resilience Enhancemeni', ttri totat investrnent funds of the Project were USD!5 million, of which IDA fund was USD65 millio;, local and national counterpart funds were USD30 million. The total the Management unit of component were investment funds for the portions implemented by Project -1 USD1.972 million from counterpart funds. Under this Decision, the Project was extended to 2026 for activities using counterpart funds of the Government. 77 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT Project "Forest Sector Modernization and Coastal Resilience Enhancement" llnder Financing Agrement - Ctdt number 6079-VN futwen the Intemational Development Associa on and the Government of the socialist Republic of Vietnam PORNONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 Implementing agencies: > National level: including Central Project Management Unit of the Poect "Forest Sector Modernization and Coastal Resilience Enhancement" under the Management Board for Forestry Projects - Ministry of Agriculture and Rural Development; and the Project Management Unit of Component 1 under Vietnam Forest Administration - Ministry of Agriculture and Rural Development. Provincial level: including 08 provinces/ciues which are Quang Ninh, Hai Phong, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien Hue. The Project consists of the following components: > Component 1: Enabling Effective Coastal furest Management. > Component 2: Coastal Forest Development and Rehabilitation. > Component 3: Generaung Sustainable Benefits from Coastal Forest. > Comrcnent 4: Project Management, Monitoring and Evaluation. 2. Summary of significant accounting policies The significant accounting policies, which have been adopted by the Project Management Unit in the preparation of the Financial Statements, are as follows: Reporting currency The Statement of Financial Position, the Statement of Income and Expenditures, the Statement of Sources and Uses of Funds, and the Statement of DisbursemenE by Category are expressed in Vietnam Dong CVND'). Basis for preparataon of the Financia! Statements The Financial Statements are prepared and presented by the Project, in accordance with requirements 1 of the World Bank ("WB'), complying with Circular No. 79l2019ffT-BTC ("Circular 79') dated 14 November 2019 issued by the Ministry of Finance guiding the accounting regime applicable to public investment project management boards. This basis of accounting is considered appropriate to the operations of the Project by management. The accounting policies have been consistently applied by ) the Project during the period and are consistent with those used in the previous year. The Project Management Unit of Component 1 did not prepare the Statement of Designated Account and the Statement of Withdrawals since there were no income and expenditures made through the designated account as well as no withdrawal application prepared in the period from 1 lanuary 2023 to 30 April 2024. 18 IIINISTRY OF AGRICULTURE AI{D RURAL DEVELOPMENT Project "Forest Sector Modernization and coastal Resilience Enhancemenf Under Financing Agrement - Ctdit number 6079-VN betwen the Inhrnational kvelopnent Assxiation and the @vemment of the fuialist Republic of Vietnam PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 Funds and Expenditur€s - Counterpart funds are recorded on the basis of accepted receipt payment vouchers or withdrawal applications from the State Treasury for actual disbursements unul the end of 30 April 2024. The disbursement of funds by category is recognised on the cash basis. Expenditures are recognised on an accrual basis. Fixed assets and depreciation and amortization Fixed assets are recognised at cost less accumulated depreciation/amortisation and depreciated or amortized using the straight-line method. In which, depreciation rate is in accordance with Circular No. 45/2018/TI--BTC dated 7 May 2018 by the Ministry of Finance. Amortization rate is in accordance with Decision No. 987/QD-BNN-TC dated 20 March 2020 by the Ministry of Agriculture and Rural Development. Designated acoount The Project Management Unit did not open a designated account because all expenditures are made using counterpart funds. 3. Funds receipt Period tromUll2023 Accumulated to30l412024 to30l412024 VND VND Funds allocated from the Ministry of Agriculture and 92,772,500 t7,735,306,093 Rural Development I c 19 MINISTRY OF AGRICULTURE AI{D RURAL DEVELOPMENT Poect "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agrtrment - Ctdit numbr 6079-VN futwen the International Development Ass&iation and the @vemment of the fucialist Republic of Vietnam PORTIONS IMPLEMENTED BY THE PROJECT MANAGEMENT UNIT OF COMPONENT 1 4. Reconciliation of counterpart funds in the Statement of Income and Expenditures with receipts of counterpart funds in the Statement of Sources and Uses of Funds Accumulated to Accumulated to 30l412024 3Utzl2022 VND VND statement of Income and Expenditures Counterpart funds [1] 17,735,306,093 17,642,533,493 Statement of Sources and Uses of Funds Receipts of counterpart funds [2] t7,735,306,093 17,36L,677,393 Difference t3l = [1] - [2] 280,856,100 Represented by [4] Other recet'vables relatd to counter@ft funds qualifid for 280,856,100 incorne recognition but rseivd in the nert year :} t , ll 20 MINISTRY OF AGRICULTURE AND RURAL DEVELOPMEI{T Project "Forest Sector Modernization and Coastal Resilience Enhancement" Under Financing Agreement - Credit number 6079-VN betw@n the Internatbnal Development Associetton and the Government of the S&ialist Republtt of Vietnam PORTIONS IMPLEMENTED BY fiE PROJECT MANAGEMENT UNIT OF COMPONENT 1 5. Reconciliation of expenditures in the Statement of Income and Expenditures with disbursements in the Statement of Sources and Uses of Funds Accumulated to Accumulated to 30l4l2024 3tlt2l2022 VND VND statement of Income and Expenditures Expenditures [1] 77,735,306,093 17,642,s33,493 Statement of Sources and Uses of Funds Disbursements [2] t7,735,306,093 17,361,677,393 Difference [3] = tll - t2l 280,855,100 Repr€sented by [4I Payables to contractors/supplieE 255,794,000 Other pyables relatd to expenditures of the Proj*t (per 24,062,100 diem) Prepared by: BA ouAn li c Nguyen Duy Thanh Trieu Van Luc = itl A@unbnt in charge Director Hanoi, 23 May 2024 r )3 27 o z ES c) o o S S gSS 'c- f t! o $f;. N s. ^8'E $$ N N ri *i $s\' ft$ 6 t N $ $ \ N' trf s s o &o t\ o t o ES o o S S ESS qt, o a .s t o: H'$. o N s'R. ri$$. ,H o dt 5e $$ @ t $. $ sH\' *f s o Io tt' t\' N \' It o b -g B o s E a r{ bE ra t" >E 8I \z- <= ZE <,] E o EE o lJ sz o- L LS= *R III E d9 E o t, tc 5S E\ ,q LL FE !ao !, o : ll. 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