Emergency response to COVID-19 in the Republic of Belarus Loan No. 9117 - BY State Institution "The Republican Scientific and Practical Center of Medical Technologies, Informatization, Management and Economics of Public Health" Financial statements under Emergency response to COVID-19 in the Republic of Belarus Project Loan No. 9117 - BY for the period from January 1, 2021 to December 31, 2021 with the independent auditor's report Minsk 2022 Emergency response to COVID-19 in the Republic of Belarus Loan No. 9117 - BY TABLE OF CONTENTS STATEMENT ON THE MANAGEMENT'S RESPONSIBILITY FOR PREPARATION AND APPROVAL OF THE FINANCIAL STATEMENTS UNDER THE PROJECT FOR THE PERIOD FROM JANUARY 01, 2021 TO D E C E M B E R 2 0 2 1 ......... ....... .................. .......... - -- ......... .... .......... ..... ............... 3 INDEPENDENT AUDITOR'S REPORT. .............. .... ... ... .......... ..... ... 4 2 Emergency response to COVID-19 in the Republic of Belarus Loan No. 9117 - BY STATEMENT ON THE MANAGEMENT'S RESPONSIBILITY FOR PREPARATION AND APPROVAL OF THE FINANCIAL STATEMENTS UNDER THE PROJECT FOR THE PERIOD FROM JANUARY 01, 2021 TO DECEMBER 31, 2021 The Management of is responsible for preparation of the financial statements under Emergency response to COVID-19 in the Republic of Belarus Project (hereinafter - "the Project") being implemented by State Institution "The Republican Scientific and Practical Center of Medical Technologies, Informatization, Management and Economics of Public Health" that present fairly in all material respects the financial position of the Project as at December 31, 2021, as well as funds received and used under the Project for the period from January 1, 2021 to December 31, 2021 in accordance with the International Public Sector Accounting Standards (IPSAS). While preparing the financial statements under the Project, the Management is responsible for: * adequate choice and application of accounting policies' principles; * presentation of information including that on accounting policies in a form which ensures relevance. reliability, comparability and transparency of such information; * compliance with the requirements of IPSAS and disclosure of all significant deviations from IPSAS in the Notes to the financial statements under the Project. The Management is also responsible for: * development, introduction and maintaining of effective and reliable internal control system under the Project: * maintenance of accounting in a form that allows to address the substance and explain transactions under the Project, and also to provide information of sufficient accuracy on the financial position of the Project at any date and ensure compliance with IPSAS; * taking all possible reasonable steps to safeguard of the assets of the Project and detecting and preventing facts of financial and other irregularities The present financial statements under the Project for the period from January 01, 2021 to December 31, 2021 were approved by the Management on April 19, 2022. On behalf of the Management: Dmitry Y. Ruzanov N atala A. Zaharevich Director Chief Accountant May 13, 2022 FBK-BEL LLC Reg. No. 05-01/65-2 of May 13, 2022. INDEPENDENT AUDITOR'S OPINION To the Management of State Institution "The Republican Scientific and Practical Center of Medical Technologies, Informatization, Management and Economics of Public Health" Opinion We have audited the financial statements of State Institution "The Republican Scientific and Practical Center of Medical Technologies, Informatization, Management and Economics of Public Health" (hereinafter - RSPC MT) under Emergency response to COVID-19 in the Republic of Belarus Project (hereinafter - the "Project"), financed by the International Bank for Reconstruction and Development (hereinafter - "IBRD") according to Loan Agreement No. 9117-BY of June 01, 2020 between the Republic of Belarus and IBRD (hereinafter - the Agreement) that include the statement of project sources and uses of funds statement, uses of funds, designated account statement, current account statement and withdrawal statement withdrawal statement for the period from January 01, 2021 to December 31, 2021, as well as notes to the financial statements including disclosure of main accounting policies. In our opinion, the accompanying financial statements under the Project fairly in all material respects represent data on received and used Project funds for the period from January 01, 2021 to December 31. 2021, n accordance with the International Public Sector Accounting Standard "Financial Reporting under the Cash Bass of Accounting" developed by the International Public Sector Accounting Standards Board of the Internationa Federation of Accountants. Basis for Opinion We conducted our audit in accordance with the requirements of Law of the Republic of Belarus of July 12. 2013 "On Auditing Activity", the National Rules on Auditing Activities effective in the Republic of Belarus. the International Standards on Auditing (hereinafter - "ISAs"), Our responsibilities under specified standards are stated in the section "Auditor's Responsibilities for the Audit of the special purpose Financial Statements" of this Auditor's Report. We are independent of RSPC MT in accordance with the Code of Ethics for Professional Accountants of the International Ethics Standards Board for Accountants ("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter - Accounting Principles and Restriction on Distribution and Use Without modifying the generated conclusion, we wish to draw your attention to Paragraph 2 of the Notes to the I financial statements, which describes the principles used in the preparation of financial statements. Our Auditor's Report is intended solely for the use of RSPC MT for presentation of information to IBRD on the Project funds received and used. Our Auditor's Report is not intended for the use of third parties, and in respect of this Auditor's Report we do not bear any responsibility or liability to any other parties except RSPC MT. In case of taking a decision by such parties based on the contents of our Auditor's Report, the third parties are liable for such decisions. Significant Uncertainty in regards to Going Concern We wish to draw your attention to Paragraph 7 of the Notes to the financial statements, which states that since March 19, 2022, the financing of the Project by the International Bank for Reconstruction and Development (hereinafter - "the Bank") has been suspended. RSPC MT has been notified by the Bank that due to large-scale restrictions and sanctions imposed on financial institutions of the Republic of Belarus by a significant number of countries, as well as other restrictions, further implementation of the Project is unlikely. We do not express a modified opinion due to this issue. Responsibilities of the Management of the Financial Statements under the Project The Management of the Project is responsible for preparation and fair presentation of the financial statements under the Project prepared in accordance with the International Public Sector Accounting Standard "Financial Reporting under the Cash Basis of Accounting" developed by the International Public Sector Accounting ne 1.'- e Y FBK-Bel LLC is a member of Nexia International, an intemational network o e a: - :-, g firms. Nexia Ingernalional does not 15X iaccept any esponsibility for the commission of any act, or omission to a-' -'- - - r0es N e x a X t Membership of Nexia Intenational, or assocaled umbrella orgaiisations does: :-; 3 -. : er 7:een members, and membe,s do not accept any resposibilily for the uommiSSion of any ac or omission to act by orthe liabitifies of. other members. FBK-BEL LLC Standards Board of the International Federation of Accountants and for the internal control system that the Management considers necessary for preparation of the financial statements under the Project that is free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Management is responsible for assessing the ability of the Project to operate as a going concern, for disclosing, as appropriate, information related to the continuity of operations, and for applying the principle of continuity of activities used in accounting, unless the Management intends to terminate the activities of the Project or when it does not have any there is another real alternative, other than termination of activity. Auditor's Responsibilities for the Audit of the Financial Statements under the Project Our objective is to obtain reasonable assurance on whether the financial statements 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 the 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 economic decisions of users taken on basis of these financial statements. Nithin the frames of the audit held in accordance with the ISAs, we apply professional judgment and maintain orofessional 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; 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 that resulting from an error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control system; * obtain an understanding of the internal control system 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 internal control system; * evaluate appropriateness of the accounting policies used and reasonableness of estimated values calculated by the Management, and related disclosures; * we conclude on the legality of the Management's application of the going concern assumption, and on the basis of the audit evidence obtained, we conclude whether there is a material uncertainty due to events or conditions that may result in significant doubts about the ability of the Project to operate on the going-concern basis. If we conclude that there is a material uncertainty, we should draw attention in our auditor's report to the relevant disclosures in the financial statements or, if such disclosures are inappropriate, modify our opinion. Our conclusions are based on audit evidence obtained prior to theAate of our audit opinion. However, future events or conditions may cause the Project to lose the ability to operate on the going-concern basis; * evaluate the overall presentation of the financial statements, their structure and content, including disclosure of information, as well as whether the financial statements represent the underlying transactions and events in such a way as to ensure their fair presentation, We communicate with the Management, informing them, above all else, about the planned scope and timing of the audit as well as significant audit findings, including any significant deficiencies in the internal control system that we identify in the course of the audit. Engagement Partner, Alexey G. Reneisky Director of FBK-Bel LLC Head of Engagement Team, Auditor Renata V. Kirslite Nexia 5 FBK-BEL LLC Audited organisation: State Institution "The Republican Scientific and Practical Center of Medical Technologies. Informatization, Management and Economics of Public Health" (RSPC MT) 7-A, P. Brovki St., Minsk, 220013, Republic of Belarus State registration: was registered by the Minsk City Executive Committee on June 23, 1992 in the Unified State Register of legal entities and individual entrepreneurs under No. 100185223. Taxpayer's identification number - 100185223. Auditing organisation: FBK-Bel Limited Liability Company (FBK-Bel LLC); Office 201-11, 22A Logoisky highway, Minsk, 220090, Republic of Belarus; State registration: was registered by Minsk City Executive Committee on February 6, 2009 in the Unified State Register of legal entities and individual entrepreneurs under No.690398039; Taxpayer's identification number - 690398039. Date of signing the Auditor's report is May 13, 2022. The Auditor's report was received on /3A t , 2022. Full name, job title 'fij 1 N k2 nnv Signature Nexia ……价… 丫 I：〔 Designated Account StatCMCDt/OTqCT o coc r(JSIHIIH cnetma.ibHO BI6IJCACHH0I'0 C'JC-I-H Belarus Emergency COVID-19 Responce ProieCtI')KCTpeIJII0e pearnpOiBaHlfe Ha COVID-19 B Ph 9117-BY for the Period 0 1.0 1.2021 to 31.12.2021 3a riepmoq c 01.01.2021 no 31.12.2021 in EUR/B eB )o po__ Period/OT IeTilhifi nep"o)l Opening balance at 0l.0l.202l/OCTaT0K,,Ienew"bjx cpeziCTB ua Halia.io O`TtieTuoro nepHoja 4955472,28 Advance of Project funds during the period/nOCTYFRIBIUMe B I-OTTIeT110M nepHoac aBaHcbi 12 400 000,00 Amount of eligible expenditures paid during the present [)eviod/CN'mma CaHKIu[0H1IP013aRIII.IX PaCXOaOB B 0TqeTu0M r1lo.-IC 8 688 982.13 ni o u nt of fu n d s tra n sferred to th e tra nsit accou n t/Cymma 1(2[ie RHbIX_ e.ICTB nepenucaeunast Ra TPOMMTHb1ii cieT 5 646 917,84 Refund to IBRD froi-n DA &I-ing the period /Bo3meujeiA we CpCrUCTB Co ClICU11,X11,H0 Bbiae.iCHHOFO CLIeTa iia C'iCT rlpOeKTa 0.00 hitereset earned,'l-la9HCJIeHHbie ripoueilTbi 6am