LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II AUDITED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT 31 DECEMBER 2021 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-1KH1 between the Royal Government of Cambodia and the International Development Association PROJECT INFORMATION PROJECT MANAGEMENT: General Department of Housing, Ministry of Land Management, Urban Planning and Construction: H.E Dr. Roth Hok, Project Director Mr. Rithy Ratanakoheyseth, Project Manager Mr. Chan Sophanna, Finance Officer National Committee for Subnational Democratic Development Secretariat, Ministry of Interior: Mr. Ma Onn Ma On Nath, Project Coordinator Mr. Chhim Sam El, Deputy of Project Coordinator Mr. Man Buntharith, Finance Officer General Directorate of Agriculture, Ministry of Agriculture, Forestry and Fisheries: Mr. Sameng Keomonine, Project Manager Mr. Cheach Damith, Finance Officer IMPLEMENTING AGENCIES: Ministry of Land Management, Urban Planning and Construction National Committee for Subnational Democratic Development Secretariat Ministry of Agriculture, Forestry and Fisheries PRINCIPAL BANKERS: National Bank of Cambodia Acleda Bank Plc. AUDITORS: BDO (Cambodia) Limited LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association CONTENTS PAGE PROJECT MANAGEMENT'S REPORT 1 INDEPENDENT AUDITORS' REPORT 2-3 STATEMENT OF FINANCIAL POSITION 4 STATEMENT OF SOURCES OF FUNDS AND EXPENDITURES 5 STATEMENT OF CASH RECEIPTS, EXPENDITURES AND COMPARISION OF 6-7 BUDGET AND ACTUAL AMOUNTS STATEMENT OF DESIGNATED ACCOUNTS 8 NOTES TO THE FINANCIAL STATEMENTS 9-25 1 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT 11 Under the Financing Agreement Number 5807-KH betwieen the Royal Government of Cambodia and the International Development Association PROJECT MANAGEMENT'S REPORT The Project Management hereby submits the report together with the audited financial statements of Land Allocation For Social And Economic Development Project II ("the Project"), which comprise statement of financial position as at 31 December 2021, statement of sources of funds and expenditures, statement of cash receipts, expenditures and comparison of budget and actual amounts and statement of designated accounts, for the financial year ended 31 December 2021. Responsibility of the Project Management in respect of the Financial Statements The Project Management is responsible to ascertain that the financial statements of the Project for the year ended 31 December 2021 are prepared, in all material respects, in accordance with the basis of preparation and accounting policies set out in Note 2 to the financial statements. In preparing these fmancial statements, the Project Management is required to select suitable accounting policies and then apply them consistently. The Project Management is responsible for ensuring that proper accounting records are kept which enable the financial statements to be prepared in compliance with basis of preparation and accounting policies set out in Note 2 to the financial statements. The Project Management is also responsible for safeguarding the assets of the Project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Project Management assumes the responsibility to provide, and has provided, the auditors with all accounting records, supporting and other documents, minutes, and any other pertinent information and explanations, either orally or in writing, necessary for the audit. Statement by the Project Management In the opinion of the Project Management, the financial statements set out on pages 4 to 25 are prepared, in all material respects, in accordance with the basis of preparation and accounting policies set out in Note 2 to the financial statements. Signed on behalf of the Project Management, H.E Dr. Roth Hok Mr. Ma Onn Ma On Nath Project Director Project Coordinator General Department of Housing, National Con-mittee for Subnational Ministry of Land Management, Urban Democratic Development Secretariat, Planning and Construction Ministry of Interior Mr. Sameng Keomonine Project Manager General Directorate of Agriculture, Ministry of Agriculture, Forestry and Fisheries Phnom Penh, Cambodia Date: 23 June 2022 Tel: +855 23 218 128 Suite 28 Hotel Camibodiana 2 Fax: +855 23 993 225 313 Sisowath Quay www.bdo.comJ,ldi Phnom Penh lingdom of Cambodia INDEPENDENT AUDITORS' REPORT TO THE PROJECT MANAGEMENT OF LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Report on the Financial Statements Opinion We have audited the financial statements of Land Allocation For Social And Economic Development Project II ("the Project"), which comprise statement of financial position as at 31 December 2021, statement of sources of funds and expenditures, statement of cash receipts, expenditures and comparison of budget and actual amounts and statement of designated accounts, for the year ended 31 December 2021 and a summary of significant accounting policies and other explanatory explanation, as set out on pages 4 to 25. In our opinion, the accompanying financial statements of the Project for the financial year ended 31 December 2021 are prepared, in all material respects, in accordance with the basis of preparation and accounting policies set out in Note 2 to the financial statements. Basis for Opinion We conducted our audit in accordance with Cambodian International Standards on Auditing ("CISAs"). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence and Other Ethical Responsibilities We are independent of the Project in accordance with the Code of Ethics for Professional Accountants and Auditors of the Kampuchea Institute of Certified Public Accountants and Auditors ("Code of Ethics") and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) ("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics and the IESBA Code. Emphasis of Matter - Basis of Accounting We draw attention to Note 2 to the financial statements, which describes the basis of preparation and accounting policies adopted by the Project. The financial statements are prepared for the purpose of assisting the Project to meet its financial reporting requirements and for the use of the Project Management, Ministry of Economy and Finance, World Bank and the donors. Our opinion is not modified in respect of this matter. Responsibility of the Project Management for the Financial Statements The Project Management is responsible for the preparation of the financial statements in accordance with the basis of preparation and accounting policies set out in Note 2 to the financial statements, and for such internal controLs as the Project Management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. BOO (Cambodia) Limited, Certified Public Accountants, a Cambodian limited liability company, is a member of BDO International Limited, a Ui company limited by guarantee, and forms part of the international BOO network of independent member firns. 3 INDEPENDENT AUDITORS' REPORT TO THE PROJECT MANAGEMENT OF LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II (continued) Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Project as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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 CISAs 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 the financial statements. As part of an audit in accordance with CISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements of the Project, 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 the Project Management. * Evaluate the overall presentation, structure and content of the financial statements of the Project, including the disclosures, and whether the financial statements of the Project represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Project Management 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. For and on behalf of BDO (Cambodia) Limited 03 P(jUM80GIA) U~NIH) Lim Sengie Certified AwTbb4tuwlarvt Phnom Penh, Cambodia Date: 23 June 2022 4 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT I Under the FinancingAgreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 Note 31.12.2021 31.12.2020 Uss US$ ASSETS Cash and bank balances 3 418,117 775,196 Advances 4 - 192,948 TOTAL ASSETS 418,117 968,144 FUND BALANCE 418,117 968,144 The accompanying notes form an integral part of/the financial statements. 5 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Nanber 5807-KII between the Royal Government of Cambodia and the International Development Association STATEMENT OF SOURCES OF FUNDS AND EXPENDITURES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 1.1.2021 1.1.2020 Cumulative to to to Note 31.12.2021 31.12.2020 31.12.2021 US$ US$ US$ SOURCES OF FUNDS International Development Association 5 1,993,366 8,250,353 23,684,018 Royal Government of Cambodia (counterpart fund) 6 92,236 125,123 735,213 Interest income (IDA-project account) 279 328 1,703 Interest income (counterpart fund-project account) 35 38 243 2,085,916 8,375,842 24,421,177 EXPENDITURES BY CATEGORIES Civil works 7 230,615 5,250,152 11,480,134 Goods 8 - 132,994 1,863,831 Consulting services 9 1,147,929 1,255,542 4,288,151 Training and workshops 10 259,328 702,757 2,832,903 Operating costs 11 805,271 813,347 3,344,641 Community grant 12 192,800 - 192,800 2,635,943 8,154,792 24,003,060 (Deficit)/Excess of sources of funds over expenditures (550,027) 221,050 418,117 Fund balance at beginning of year 968,144 747,094 - Fund balance at end of year/period 418,117 968,144 418,117 EXPENDITURES BY COMPONENTS 13 Infrastructure and livelihood systems 2,134,868 7,657,283 20,958,817 Project management: - IDA 369,870 348,524 2,312,935 - Counterpart fund 131,205 148,985 731,308 2,635,943 8,154,792 24,003,060 The accompanying notes form an integral part of the financial statements. 6 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association STATEMENT OF CASH RECEIPTS, EXPENDITURES AND COMPARISION OF BUDGET AND ACTUAL AMOUNTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 Actual 1.1.2021 Total to budget 31.12.2021 US USS (unaudited) SOURCES OF FUNDS International Development Association 1,993,366 Royal Government of Cambodia (counterpart fund) 92,236 Interest income (IDA-project account) 279 Interest income (counterpart fund-project account) 35 2,085,916 EXPENDITURES BY CATEGORIES Civil works 254,135 230,615 Goods Consulting services 1,194,936 1,147,929 Training and workshops 397,466 259,328 Operating costs 1,015,335 805,271 Community grant 1,399,900 192,800 4,261,772 2,635,943 Deficit of sources of funds over expenditures (550,027) Fund balance at beginning of year 968,144 Fund balance at end of year/period 418,117 EXPENDITURES BY COMPONENTS Infrastructure and livelihood systems 3,615,744 2,134,868 Project management: - IDA 514,823 369,870 - Counterpart fund 131,205 131,205 4,261,772 2,635,943 7 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of' Cambodia and the International Development Association STATEMENT OF CASH RECEIPTS, EXPENDITURES AND COM[PARISION OF BUDGET AND ACTUAL AMOUNTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 (continued) Actual 1.1.2020 Total to budget 31.12.2020 US$ US$ (unaudited) SOURCES OF FUNDS International Development Association 8,250,353 Royal Government of Cambodia (counterpart fund) 125,123 Interest income (IDA-project account) 328 Interest income (counterpart fund-project account) 38 8,375,842 EXPENDITURE BY CATEGORIES Civil works 4,953,300 5,250,152 Goods 146,499 132,994 Consulting services 1,616,602 1,255,542 Training and workshops 1,496,811 702,758 Operating costs 1,045,151 813,346 Community grant 719,740 - 9,978,103 8,154,792 Excess of sources of funds over expenditures 221,050 Fund balance at beginning of year 747,094 Fund balance at end of year 968,144 EXPENDITURES BY COMPONENTS Infrastructure and livelihood systems 9,289,569 7,657,283 Project management: - IDA 539,548 348,524 - Counterpart fund 148,986 148,985 9,978,103 8,154,792 The accompanying notes firm an integral part of thefinancial statements, 8 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association STATEMENT OF DESIGNATED ACCOUNTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 1.1.2021 1.1.2020 Cumulative to to to Note 31.12.2021 31.12.2020 31.12.2021 US$ US$ US$ SOURCES OF FUNDS Unused funds from the previous year/period 925,062 680,188 - Funds received during the year 5 1,993,366 8,250,353 23,684,018 Interest income (IDA-project account) 279 328 1,703 2,918,707 8,930,869 23,685,721 EXPENDITURES BY CATEGORIES Civil works 7 230,615 5,250,152 11,480,134 Goods 8 - 132,994 1,863,831 Consulting services 9 1,139,429 1,242,227 4,255,924 Training and workshops 10 259,928 702,757 2,832,903 Operating costs 11 682,566 677,677 2,646,160 Community grant 12 192,800 - 192,800 2,504,738 8,005,807 23,271,752 Fund balance at end of year/period 413,969 925,062 413,969 REPRESENTED BY: Cash on hand 3 - 1,006 - Cash at banks 3 413,969 731,108 413,969 Advances 4 - 192,948 - 413,969 925,062 413,969 The accompanying notes form an integral part of the financial statements. 9 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association NOTES TO THE FINANCIAL STATEMENTS 1. PROJECT BACKGROUND The Land Allocation For Social And Economic Development Project II ("the Project") was established under the Financing Agreement Number 5807-KH signed on 9 June 2016 between the Royal Government of Cambodia ("RGC") represented by the Ministry of Economy and Finance ("MEF") and the International Development Association ("IDA") of World Bank. The agreement became effective for implementation from 8 August 2016. The amount of funding under the financing agreement to be provided to the Project is SDR18,200,000, with details as follows: Amount of the Credit % of Expenditures to Allocated be Financed Category (expressed in SDR) (inclusive of taxes) (1) Goods, Works, Non-consulting 16,800,000 100% services, Consultants' services, Training and Workshops Cost under Part I and 2 of the Project excluding Community Grants (2) Community Grants under Part 1.2 and 1,400,000 100% of amounts 1.3 of the Project disbursed (3) Emergency Expenditure under Part 3 - 100% of the Project TOTAL 18,200,0001 The Project started with the objective to help improve target beneficiaries' access to agriculture resources and selected infrastructure and social service in Project communities. The Project is being implemented by the following ministries: 1. Ministry of Land Management, Urban Planning and Construction ("MLMUPC"); and 2. National Committee for Subnational Democratic Development Secretariat ("NCDDS"); and 3. Ministry of Agriculture, Forestry and Fisheries ("MAFF"). The Project consists of the following parts: Part 1: Infrastructure and Livelihood Systems 1.1 Social Land Concession Investment Planning and Prioritization: Planning and prioritization of investments in selected Social Land Concession ("SLC") sites in the Project Provinces; including: (a) participatory preparation (at new site) and updating of SLC plans (at existing sites), including land surveying, detailed land use planning, processing of requests for land allocation, sensitization and communication on SLC processes and implementation of participatory review processes by communal authorities, land allocation and demarcation of and within the selected SLC sites, and facilitation of the land titling process in the selected SLC sites; and (b) identification, prioritization and planning of appropriate Sub-project technology and infrastructure investments, including the carrying out of a baseline survey, agro-ecosystem analysis, water management planning, assessment of environmental and social safeguard aspects, and establishment of SLC-related management information system as input to the SLC planning and prioritisation. 10 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Nnber 5807-ICH betveen the Royal Government of Cambodia and the International Development Association 1. PROJECT BACKGROUND (continued) Part 1: Infrastructure and Livelihood Systems (continued) 1.2 Land Preparation and infrastructure Development: Provision of technical assistance and Community Grants to Beneficiaries for land preparation and the implementation of prioritized infrastructure investments in the selected SLC sites; including: (a) provision of settling-in assistance to new land recipients; (b) provision of initial land preparation assistance including a first cover crop; and (c) provision of productive and social community infrastructure such as rural roads, small-scale irrigation systems, rural water supply and sanitation, education facilities, health posts and community centers, among others. 1.3 Agriculture and Livelihood Development: Provision of technical assistance and Community Grants to Beneficiaries for consolidation and improvement of agricultural production systems and improvements in the livelihoods, food security and nutrition status of land recipients; including: (a) conduct of community organizing and development activities; (b) provision of agricultural service and extension support following a pluralistic service provider approach; (c) establishment of farmer-managed demonstration plots and model farms; (d) establishment and/or strengthening of farmers organizations, agriculture cooperatives, production and marketing groups and other community interest groups; and (e) establishment of a community fund and provision of Community Grants to strengthen successful local initiatives in the selected SLC sites. Part 2: Project Management 2.1 Provision of technical and operational assistance for the overall project administration and coordination of the Project; including: (a) social and environmental safeguards management; (b) procurement planning and contracts management; (c) financial management, disbursement and audit; and (d) monitoring, evaluation and communication. Part 3: Contingent Emergency Response Provision of immediate response to an Eligible Crisis or Emergency, as needed. 11 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUTING POLICIES 2.1 Basis of preparation The financial statements of the Project, which are expressed in United States Dollar ("US$"), have been prepared in accordance with modified cash basis of accounting. Under this basis of accounting, fund received is recognised when received rather than when the right to receive it arises, and expenditure is recognised when it is paid rather than when incurred, except for the advances to implementing agencies as well as other payable, which are initially recognised as receivables and payable in the financial statements and will be reversed when payments are received or made. The financial statements present sources and uses of funds, and the related financial information in relation to the IDA fund withdrawals and disbursements from the Project's designated account as specified under the Financial Agreement Number 5807-KH between the MEF of RGC and the IDA of World Bank. 2.2 Sources of funds Funds from the IDA are recognised as a source when cash is transferred to the Project's designated account or when direct payments are disbursed by the IDA, rather than when committed or budgeted. Counterpart fund is recognised as a source when cash is withdrawn from the State Treasury or when a payment is transferred directly from the State Treasury to the Project's national bank account. 2.3 Expenditures Expenditure is recognised when payment is made rather than when it is incurred, except as disclosed in Note 2.1 to the financial statements. 2.4 Equipment Equipment procured are recognised as expenditure when received or when handed-over from the contractors or suppliers upon the respective acceptance and approval by the Project. 2.5 Cash Cash consists of cash and bank balances with insignificant risk of changes in values. The Project maintains a designated account with the National Bank of Cambodia in a US$ denominated account. A petty cash float is also maintained in US$. 2.6 Statement of designated account The statement of designated account presents the receipts and payments funded by the IDA in accordance with the financing agreement. 2.7 Foreign exchange differences Expenditures and withdrawals in foreign currencies (other than US$) are converted into US$ at the prevailing exchange rates declared by the National Bank of Cambodia ruling at the date of transactions. Monetary items denominated in foreign currencies are translated in to US$ for reporting purposes at the closing exchange rate prevailing at the reporting date. 2.8 Commitment and service charges Commitment and service charges relating to the IDA are paid directly by the MEF and are not accounted for in the financial statements. 12 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 3. CASH AND BANK BALANCES 31.12.2021 31.12.2020 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total US$ USS US$ US$ USS US$ US$ usS IDA Cash on hand - - - - 402 335 269 1,006 Cash at banks 95,672 299,209 19,088 413,969 114,867 605,286 10,955 731,108 95,672 299,209 19,088 413,969 115,269 605,621 11,224 732,114 Counterpart fund Cash at banks 2,940 968 240 4,148 10,440 32,402 240 43,082 98,612 300,177 19,328 418,117 125,709 638,023 11,464 775,196 4. ADVANCES 31.12.2021 31.12.2020 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total USS US$ Uss us$ US US$ US$ US$ IDA Kompong Chhnang - - - - - 50,764 - 50,764 Kompong Thom - - - - 38,968 - 38,968 Kratie - - . - - 46,212 46,212 Kompong Speu - - - - 41,397 - 41,397 Tbong Khmum - - - - - 15,607- 15,607 - - - - 192,948 192,948 13 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 5. INTERNATIONAL DEVELOPMENT ASSOCIATION 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.2021 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total Total Us$ US$ US$ US$ US$ US$ US$ Us$ US$ Fund receipts 98,482 1,843,280 51,604 1,993,366 329,550 7,843,950 76,853 8,250,353 23,684,018 6. ROYAL GOVERNMENT OF CAMBODIA (COUNTERPART FUND) 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.2021 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total Total US$ US$ Us$ US$ Us$ US$ Us$ US$ USS Fund receipts 17,220 58,406 16,610 92,236 30,780 76,223 18,120 125,123 735,213 14 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 7. CIVIL WORKS 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.2021 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total Total US$ USS US$ USS USS USS US$ uS$ US$ IDA Social community infrastructure - 10,280 - 10,280 - 161,937 - 161,937 802,425 Land preparation - - - - - 34,568 - 34,568 2,440,025 Building-School and Health - 17,875 - 17,875 - 67,422 - 67,422 1,044,621 Laterite and earth roads - 179,996 - 179,996 - 4,871,848 - 4,871,848 6,640,613 Other civil work - 22,464 - 22,464 - 114,377 - 114,377 552,450 - 230,615 - 230,615 - 5,250,152 - 5,250,152 11,480,134 8. GOODS 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.2021 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total Total US$ US$ US$ US$ US$ US$ US$ US$ US$ IDA Technical and software - - - - - 6,980 - 6,980 139,884 Vehicle - - 469,020 Furniture and equipment - - - - 4,800 - 4,800 609,925 Seeding and supply - - - - - - 523,788 Goods supply - - 121,214- 121,214 121,214 - - - - - 132,994 132,994 1,863,831 15 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 9. CONSULTING SERVICES 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.2021 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMIUPC MOI MAFF Total Total US$ US$ US$ US$ US$ US$ US$ us$ USS IDA National consultant fee 64,600 1,074,829 - 1,139,429 153,916 1,040,465 - 1,194,381 4,204,999 International consultant fee - - - - 33,883 13,963 - 47,846 50,925 64,600 1,074,82942 1,139,429 187,799 1,054,428 1,242,227 4,255,924 Counterpart fund National consultant fee - 8,50050 8,500 - 13,315- 13,315 32,227 64,600 1,083,329- 1,147,929 187,799 1,067,743- 1,255,542 4,288,151 10. TRAINING AND WORKSHOPS 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.2021 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total Total USS US$ US$ US$ US$ US$ USS US$ US$ IDA Training and workshops 2,453 248,397 8,478 259,328 12,840 625,626 64,292 702,758 2,832,903 16 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 11. OPERATING COSTS 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.2021 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLM-UPC MOI MAFF Total MLMUPC MOI MAFF Total Total USS US$ US$ US$ US$ US$ US$ US$ USS IDA Office stationaries 2,054 19,842 1,321 23,217 835 21,011 1,434 23,280 103,828 Office supply 1,483 16,637 1,118 19,238 2,862 22,973 1,368 27,203 86,836 Service fee 33 3,767 25 3,825 56 2,537 - 2,593 11,393 Copy and printing - 3,545 - 3,545 164 3,831 90 4,085 31,833 Vehicle cost (repair, maintenance, and fuel) 9,302 151,332 10,408 171,042 10,696 138,016 11,741 160,453 777,745 Media and newspaper - 3,943 - 3,943 7 10,359 - 10,366 44,865 Communication costs 1,756 12,066 1,716 15,538 1,033 10,762 1,349 13,144 64,412 Support staff 17,400 82,288 6,600 106,288 16,025 78,996 5,400 100,421 443,193 Meeting and mission fee 18,398 - - 18,398 45,916 - - 45,916 64,314 Technical assistant - travel and daily subsistence allowance cost - 302,858 14,074 316,932 - 287,289 84 287,373 1,014,299 Car rental 600 - - 600 - - - - 600 Others - - - - 2,842 - - 2,842 2,842 51,026 596,278 35,262 682,566 80,436 575,774 21,466 677,676 2,646,160 Counterpart fund Priority operating cost ("PoC") 24,720 81,132 16,610 122,462 29,700 87,850 18,120 135,670 699,080 Office stationary - 243 - 243 - - - - 243 75,746 677,653 51,872 805,271 110,136 663,624 39,586 813,346 3,345,483 17 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 12. COMMUNITY GRANT 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.21 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total Total US$ US$ USS USS USS US$ US$ Us$ USS IDA Community grant - 192,800- 192,800 - - - - 192,800 13. EXPENDITURES BY COMPONENTS 1.1.2021 1.1.2020 Cumulative to to to 31.12.2021 31.12.2020 31.12.21 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total Total US$ US$ US$ US$ US$ US$ US$ us$ USS Infrastructure and livelihood systems 86,050 2,026,266 22,552 2,134,868 247,045 7,345,860 64,376 7,657,281 20,958,817 Project management: - IDA 32,029 316,653 21,188 369,870 34,030 293,114 21,382 348,526 2,312,935 - Counterpart find 24,720 89,875 16,610 131,205 29,700 101,165 18,120 148,985 731,308 142,799 2,432,794 60,350 2,635,943 310,775 7,740,139 103,878 8,154,792 24,003,060 18 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 14. DESIGNATED ACCOUNTS AND WITHDRAWAL APPLICATIONS 14.1 Statement of designated accounts - IDA Loan 2021 2020 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total US$ US$ US US$ us$ US$ US$ US$ Balance as at 1 January 115,269 798,569 11,224 925,062 66,794 593,265 20,129 680,188 Add: Total amount advanced during the period 98,482 1,843,280 51,604 1,993,366 329,550 7,843,950 76,853 8,250,353 Interest income - current account (Project account) - 279 - 279 - 328 - 328 Deduct: Total amount withdrawn for expenditures during the period (118,079) (2,342,919) (43,740) (2,504,738) (281,075) (7,638,974) (85,758) (8,005,807) Balance as at 31 December 95,672 299,209 19,088 413,969 115,269 798,569 11,224 925,062 14.2 Summary of withdrawal applications - IDA Loan (a) GDH-MLMUPC Amount claimed for replenishment Initial Consulting Training and Operating Withdrawal application number Date advance Civil works Goods services workshops costs Total US$ USS USS US$ US$ US$ 2016 to 2018 WA # NCSLC-001 ADV 8 Nov 2016 150,000 - - - - 150,000 WA # NCSLC-001 11 Apr 2017 - - - 9,771 1,924 11,695 WA # GDH-17-002 29 Jun 2017 - - 460 - - 9,239 9,699 WA # GDH-17-003 27 Oct 2017 - 20,005 290 17,940 38,235 WA # GDH-18-004 7 Feb 2018 - - - 19,805 2,015 26,913 48,733 WA # GDH-18-005 24 Jul 2018 - - - 29,758 34,786 18,088 82,632 WA # GDH-18-006 15 Nov 2018 - - 28,857 19,981 14-110 62.948 150,000 460 98,425 66,843 88,214 403,942 19 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 14. DESIGNATED ACCOUNTS AND WITHDRAWAL APPLICATIONS (continued) 14.2 Summary of withdrawal applications - IDA Loan (continued) (a) GDH-MLMUPC (continued) Amount claimed for replenishment Initial Consulting Training and Operating Withdrawal application number Date advance Civil works Goods services workshops costs Total US$ USS US$ USS US$ US$ US$ 2019 WA # GDH-19-007 8 Feb 2019 - - - 24,711 20,081 16,398 61,190 WA # GDH-19-008 28 Mar 2019 - - - 19,609 6,510 5,156 31,275 WA # GDH-19-009 27 Jun 2019 - - 715 55,546 15,200 9,494 80,955 W A # G D H - 1 9 - 0 1 0 2 8 O c t 2 0 1 9 - - - 5 2 ,3 1 9 1 6 , 1 1 2 1 5 ,3 4 8 8 3 , 7 7 9 - - 715 152,185 57,903 46,396 257,199 2020 WA # GD-20-011 10 Mar 2020 - - - 40,615 29,977 12,613 83,205 WA # GDH-20-012 4 Jun 2020 - - - 109,063 - 17,577 126,640 WA # GDH-20-013 9 Oct 2020 - - - 47,995 2,178 32,983 83,156 WA # GDH-20-014 18 Dec 2020 - - - 14,011 4,770 17,768 36,549 - - 211,684 36,925 80,941 329,550 2021 WA # GDI-J-20-015 31 Mar 2021 - - 16,731 5,892 12,109 34,732 WA # GDH-20-016 27 Sep 2021 - - 35,133 2,453 26,164 63,750 - - - 51,864 8,345 38,273 98,482 20 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 14. DESIGNATED ACCOUNTS AND WITHDRAWAL APPLICATIONS (continued) 14.2 Summary of withdrawal applications - IDA Loan (continued) (b) NCDDS-MOI Amount claimed for replenishment Initial Consulting Training and Operating Withdrawal application number Date advance Civil works Goods services workshops costs Total US$ US$ US$ US$ US us$ US$ 2016 to 2018 WA# 001-ADV 26 Oct 2016 1,600,000 - - - - 1,600.000 NCDDS-WA/002 15 Jun 2017 - - - - 13,626 12,574 26,200 NCDDS-WA/003 12 Sep 2017 - - 243,531 11,667 14,755 98,865 368,818 NCDDS-WA/004 18 Oct 2017 - - 100,170 8,591 5,494 32,432 146,687 NCDDS-WA/005 29 Dec 2017 - - - 21,486 44,156 57,756 123,398 NCDDS-WA/006 14 Mar 2018 - 15,273 53,003 38,962 49,892 63,285 220,415 NCDDS-WA /007 17 Apr 2018 - 9,630 131,418 53,403 34,493 51,406 280,350 NCDDS-WA/008 10 May 2018 - 93,272 221,064 74,525 14,059 56,574 459,494 NCDDS-WA/009 21 May 2018 - 478,509 12,910 40,105 3,419 29,532 564,475 NCDDS-WA/010 31 May 2018 - 766,049 - 75,308 25,819 30,607 897,783 NCDDS-WA/011 11 Jun 2018 - 109,486 - 35,707 31,324 30,950 207,467 NCDDS-WA/012 13 Aug 2018 - 93,401 43,900 41,986 63,806 39,609 282,702 NCDDS-WA/013 28 Aug 2018 - 705,799 55,220 13,468 2,810 2,991 780,288 NCDDS-WA/014 10 Sep 2018 - 128,723 - 35,707 95,345 26,226 286,001 NCDDS-WA/015 18 Oct 2018 - 87,866 176,652 49,805 48,038 38,030 400,391 NCDDS-WA/016 14 Nov 2018 - 63,238 140,905 81,856 23,121 31,194 340,314 NCDDS-WA/017 11 Dec 2018 - 334,752 11,950 58,392 40,631 42,879 488,604 1,600,000 2,885,998 1,190,723 640,968 510,788 644,910 7,473,387 21 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 14. DESIGNATED ACCOUNTS AND WITHDRAWAL APPLICATIONS (continued) 14.2 Summary of withdrawal applications - IDA Loan (continued) (b) NCDDS-MOI (continued) Amount claimed for replenishment Initial Consulting Training and Operating Withdrawal application number Date advance Civil works Goods services workshops costs Total USS USS US$ US$ US$ US$ US$ 2019 NCDDS-WA/018 6 Feb 2019 - 36,755 - 78,810 60,494 46,389 222,448 NCDDS-WA/019 19 Mar 2019 - 280,776 8,980 49,779 118,405 56,016 513,956 NCDDS-WA/020 11 Apr 2019 - 75,187 - 49,631 9,924 17,055 151,797 NCDDS-WA/021 8 May 2019 - 428,262 - 154,145 23,945 23,379 629,731 NCDDS-WA/022 19 Jun 2019 - 425,281 - 50,645 49,203 26,000 551,129 NCDDS-WA/023 24 Jul 2019 - 22,770 - 50,616 62,575 32,331 168,292 NCDDS-WA/024 8 Aug 2019 - 308,475 12,925 140,896 8,802 4,328 475,426 NCDDS-WA/025 27 Aug 2019 - 48,145 - - 52,358 18,539 119,042 NCDDS-WA/026 6 Sep 2019 - 374,878 150,681 91,055 6,124 6,228 628,966 NCDDS-WA/027 28 Oct 2019 - 256,252 - 67,075 167,278 27,872 518,477 NCDDS-WA/028 13 Nov 2019 - 144,210 403,379 55,373 106,312 68,107 777,381 N C D D S -W A /02 9 2 3 D ec 2 0 19 - 9 4 ,2 9 4 3 8 ,6 4 1 5 5 ,3 5 8 8 5 ,14 4 2 8,0 2 1 3 0 1,4 5 8 - 2,495,285 614,606 843,383 750,564 354,265 5,058,103 22 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 14. DESIGNATED ACCOUNTS AND WITHDRAWAL APPLICATIONS (continued) 14.2 Summary of withdrawal applications - IDA Loan (continued) (b) NCDDS-MOI (continued) Amount claimed for replenishment Withdrawal application Initial Civil Consulting Training and Operating Community number Date advance works Goods services workshops costs grant Total US US$ USS us$ US$ US$ US$ US$ 2020 NCDDS-WA/030 22 Jan 2020 - 174,251 82,950 56,911 89,868 31,076 - 435,056 NCDDS-WA/031 24 Feb 2020 - 292,046 760 60,692 184,076 35,198 - 572,772 NCDDS-WA/032 3 Mar 2020 - 276,898 - 91,288 - 18,669 - 386,855 NCDDS-WA/033 20 Mar 2020 - 239,721 5,506 125,909 - 7,866 - 379,002 NCDDS-WA/034 8 Apr 2020 - 817,634 - 14,645 243 38,161 - 870,683 NCDDS-WA/035 15 May 2020 - 24,715 - 52,570 29,202 36,784 - 143,271 NCDDS-WA/036 29 May 2020 - 968,829 73,139 88,719 - 6,520 - 1,137,207 NCDDS-WA/037 29 Jun 2020 - 162,548 50,549 9,232 45,482 65,104 - 332,915 NCDDS-WA/038 17 Jul 2020 - 1,011,242 - 252,220 - 12,414 - 1,275,876 NCDDS-WA/039 6 Aug 2020 - 24,505 - - 71,806 28,759 - 125,070 NCDDS-WA/040 1 Sep 2020 - 575,242 - 85,086 - 16,038 - 676,366 NCDDS-WA/041 6 Oct 2020 - 38,035 - - 80,698 40,958 - 159,691 NCDDS-WA/042 20 Oct 2020 - 408,405 - 67,485 41,903 38,332 - 556,125 NCDDS-WA/043 23 Nov 2020 - 289,352 - 64,251 64,350 41,352 - 459,305 NCDDS-WA/044 31 Dec 2020 - 120,076 1900 64,012 75,734 72,034 - 333,756 - 5,423,499 214,804 1,033,020 683,362 489,265- 7,843,950 2021 NCDDS-WA/045 18 Feb 2021 - 101,311 - 65,375 104,329 47,558 - 318,573 NCDDS-WA/046 6 Jan 2021 - 191,641 - 73,637 139,876 79,129 - 484,283 NCDDS-WA/047 17 Jun 2021 - 96,282 - 310,133 - 27,441 192,800 626,656 NCDDS-WA/048 6 Aug 2021 - 19,383 - 48,142 - 114,187 - 181,712 NCDDS-WA/049 24 Sep 2021 - 41,778 - 181,744 - 8,534 - 232,056 - 450,395 - 679,031 244,205 276,849 192,800 1,843,280 23 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International DevelopmentAssociation 14. DESIGNATED ACCOUNTS AND WITHDRAWAL APPLICATIONS (continued) 14.2 Summary of withdrawal applications - IDA Loan (continued) (c) GDA-MAFF Amount claimed for replenishment Initial Consulting Training and Operating Withdrawal application number Date advance Civil works Goods services workshops costs Total US$ USS US$ US$ US$ US$ USS 2016 to 2018 WA4 001-ADV 25 Jan 2017 50,000 - - - - - 50,000 GDA-WA/002 11 Oct 2017 - - - - 11,444 4,650 16,094 GDA-WA/003 13 Mar 2018 - - - - 25,786 14,958 40,744 GDA-WA/004 25 Jun 2018 - - - - 3,291 11,115 14,406 GDA-WA/005 10 Sep 2018 - - - - 4,551 14,472 19,023 G D A - W A / 0 0 6 1 1 D e c 2 0 1 8 - - - 1 2 , 6 9 4 1 4 , 9 6 3 2 7 , 6 5 7 50,000 - - - 57,766 60,158 167,924 2019 GDA-WA/007 6 Mar2019 - - - - 16,450 4,907 21,357 GDA-WA/008 26 Jul2019 - - - - 19,128 19,128 GDA-WA/009 18 Oct 2019 - - - - 4,894 7,644 12,538 GDA-WA/010 18 Dec 2019 - 18,325 8,396 26,721 -- 939669 40,075 79,744 2020 GDA-WA/011 4 Mar 2020 - - - - 21,505 8,365 29,870 GDA-WA/012 15 Jul 2020 - - - - 10,034 10,034 GDA-WA/013 15 Sep 2020 - - - 14,114 9,365 23,479 GDA-W A/014 24 Nov 2020 --- - 8,405 5,065 13,470 - -4,3-744,024 32,829 76,853 24 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 14. DESIGNATED ACCOUNTS AND WITHDRAWAL APPLICATIONS (continued) 14.2 Summary of withdrawal applications - IDA Loan (continued) (c) GDA-MAIFF Amount claimed for replenishment Initial Consulting Training and Operating Withdrawal application number Date advance Civil works Goods services workshops costs Total US$ US$ US$ US$ US$ US$ USS 2021 GDA-WA/0 15 2 Feb 2021 - - - - 17,725 4,767 22,492 GDA-WA/016 14 Apr 2021 14,274 2,010 16,284 GDA-WA/017 1 Nov 2021 - -12,828 12,828 - - 31,999 19,605 51,604 15. COMMITMENTS The Project has commitments which were contracted but not yet paid as at 31 December 2021, as follows: 31.12.2021 31.12.2020 GDH- NCDDS- GDA- GDH- NCDDS- GDA- MLMUPC MOI MAFF Total MLMUPC MOI MAFF Total US$ US$ US US US$ US$ US$ USS IDA Civil works - - - - - 159,726 - 159,726 Goods - - - - - 296,559 - 296,559 Consulting services - - - - 93,161 752,690- 845,851 - - - - 93,161 1,208,975 - 1,302,136 25 LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT II Under the Financing Agreement Number 5807-KH between the Royal Government of Cambodia and the International Development Association 16. TAXATION CONTINGENCIES The taxation system in Cambodia is relatively new and is characterised by numerous taxes and frequently changing legislation, which is often unclear, contradictory, and subject to interpretation. Often, differing interpretations exist among numerous taxation authorities and jurisdictions. Taxes are subject to review and investigation by a number of authorities, who are enabled by law to impose severe fines, penalties and interest charges. These facts may create tax risks in Cambodia substantially more significant than in other countries. Project Management believes that it has adequately provided for tax liabilities based on its interpretation of tax legislation. However, the relevant authorities may have differing interpretations and the effects could be significant.