랙： Independent Auditor Report To PMU Director S.Enkbold E-Health Project, Mongofia According to the contract UAG/AA2021-239 made between National Audit Office, E-Health Project Mongolia (the "Project'l and "Inter Audi ' LLC, we have audited the Financial Reports, the Statement of Expenditures (SOE), disbursement requests and designated account statement of the Project for the year ended December 31, 2020 in accordance with International Standard on the International Standards on Auditing. We conducted our audit in accordance with the International Standards on Auditing issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the project financial statements are free of material misstatement. An audit includes examining on test basis, evidence supporting the amounts and disclosures in the annual financial reports. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. The management policy of E-Health Project Mongolia is to prepare the project Financial Statements on the cash receipts and payments basis in conformity with International Public Sector Accounting Standards (IPSAS). On this basis, cash receipts recognized when received and cash expenditures are recognized when paid rather than when incurred, In our opinion, the project Financial Statements have been prepared in accordance with International Public Sector Accounting Standard issued by the Public Sector Committee of the Federation of Accountants, present fairly the cash receipts and payments of the project during the year ended December 31, 2020 and, in all material respects expenditure have applied to the purpose intended in the Financing Agreement, Credit Number: P131290. MUNKHBAYAR CHULUUNBAATAR GENERAL Uiaaribaat Date, 29.06,2021 The Government of Mongolia The International Development Association Credit number: P131290, IDA 5489-MN E-Health Project Mongolia BALANCE SHEET For the period from Jan 01, 2020 to Dec 31, 2020 lin US Dollarl Balance category Notes Dec 31, 2019 Dec 31, 2020 ASSETS* Cash and cash equivalents 719,039.93 568,058.56 Cash on Hand Current account-designated account 508,843.03 284,01257 Current account-Investment account 203,829.20 276,103.71 Current account- State fund 6,367.70 7942.28 Total cash 719,039.93 568,058.56 Project Expenditures 1,770,427.05 4,503,594,35 Category 3 1,170,842.12 3,778,177.87 Consultant service 691,390.32 827,611.46 Non consulting service 201,69272 562,56.82 Goods 277,759.08 2,388,079 59 Advance payment Category 4 599,584.93 725,416.48 Consultant service 432,032.28 532,674,65 Non consulting service 9,612.88 13,34470 Goods IEquipmentl 92.186.14 94,562,38 Goods lPrinling/ 6,479,72 8,25533 Incremental operation cost 59,273.91 76,579.42 Advance payment TOTAL ASSETS 2,489,466.90 5,071,65291 FUNDS: FUNDS AND OTHER 2,489,466.98 5,071,652.91 Financing-WB 2,438,374.80 5,022,756.09 Interest earned 46,389,08 45,570.96 Other income 4,703.10 3,325.86 TOTAL FUNDS __2,489,466.98 5,071,652.91 The financial s t ments were approved on June 29, 2021 by: S Enkhbold P.Suvd IPIU Coordinator s IPlU financial menegement specialist The Government of Mongolia The International Development Association Credit number: P131290, IDA 5489-MN E-Health Project Mongolia STATEMENT OF PROJECT SOURCES AND USES FUNDS For the period from Jan 01, 2020 to Dec 31, 2020 /in US Dollarl Description As of Jan 01, 2020 As of Dec 31, 2020 2020 SOURCES OF FUNDS: 2,489,466.98 2,582,185.93 5,071,652.91 Financing-WB 2,438,374.80 2,584,381,29 5,022,756.09 Interest earned 46,389.06 (818.12) 45,570.96 Ottier income 4.7031 0 (1,377,24) 3,325.86 USES OF FUNDS BY COMPONENTS 1,770,427.05 2,733,167.30 4,503,594.35 Category 3 1,170,842.12 2,607,335.75 3,778,177.87 Consultant service 091,390.32 136,121.14 827,511,46 Non consulting service 201,692.72 360,894.10 562,586.82 Goods 277,759.08 2,110,320.51 2,388,079.59 Category 4 599,584.93 125,831.55 725,416.48 Consultant service 432,03228 100,642.37 532,674,65 Non consulting service 9,612.88 3,731.82 13,344.70 Goods /equipment/ 92,186.14 2,376.24 94,562.38 Goods Iprinting/ 6,479.72 1,77561 8,255.33 Incremental operation cost 59,273.91 16,373,85 75,647,76 Advance payment - 931.66 931,66 SOURCES OF FUNDS LESS USES OF 71903993 (150,981.29) 568,D58.56 FUNDS S Enkhb P.Suvd IPIU Coordinator IPIU financial management specialist The Government of Mongolia The International Development Association Credit number: P131290, IDA 5489-MN E-Health Project Mongolia STATEMENT OF EXPENDITURES (IDA Withdrawals) For the period from Jan 01 2020 to Dec 31, 2020 /in US Dotlar Numers Application type credited date Amen rmouit Difference Up to December 31, 2019 2,436,522.92 2,430,374-80 For the reporting period - WA #22* Replishment 0103.2020 333.90413 333904.13 WA #24 Replishment 052,2020 65,885.74 65,885.74 WA #25 Replishment 1205.2020 278,694.56 278,69456 WA #26 Replishment 13,05.2020 467,857.73 467,85773 WA #27 Replishment 25 06 2020 1,363,351.12 1.33.35112 WA #28 Replishment 16,092020 74,633,01 74,63301 For the reporting period 2,584,381.29 2,584,381.29 WA #30" 3 plishment 2021.05 19 479,454.34 - Upto December 1,20-053500,303.55 5,022,701.09 *Claimed and withdrawn previous year expenses * Claimed reporting period expenses, but not withdrawn Prepared Approved by: S.Enkh o P Suvd IPIU Coor nator IPlU financial management specialist 댜 The Government of Mongolia The International Development Association Credit number: P131290 E-Health Project Mongolia DESIGNATED ACCOUNT STATEMENT For the period from Jan 01, 2020 to Dec 31, 2020 )In US Dollar/ Notes Dec _I_,20knec S1, 2019 PART A -Account transactions Beginning balance 608,843,03 785,856.78 Add 473,656.94 793,624.31 IDA Advance Replenishment 474,397.88 791,633.16 Interest Earned (740.94) (478 85) other income - 2,470LO Ded uct 698,487.40 1,070,638.06 Goods Consulting services 87,524,36 248,511 A5 Non consulting services 354,79101 19,995.00 fncremantal Investment Costs 254,167,25 730,283.18 Incremantal Operating Costs 2,002.78 71,848.43 284,012.57 508,843.03 PARf B Aci ii tre-con-cillations-"-'------ Amount advanced by the IDA 1,000,000.00 1,000'.000.00 Ending balance 284,012,57 508,843,03 Add 763,500.33 544,101.03 Sub-accounts (USD and MNT) ending 276,103,71 203,829.20 balance Sub-accounts (USD, and MNT) ending 7,94Z28 6,36770 balance Amount not withdrawn yet but claimed 479,454.34 333,904.13 advance payment Deduct 47,512.90 52,944.06 Interest earned 47.500.02 48,240.96 other income 12-88 4,703.10 _floia fid-anc _io- Des ignated-account for"__"""_ ,000000.00 11000,000,00 Approved by- Prepared by: S.Enkhbol P, Suvd lPlU Coordinator PILI financial management specialist The Government of Mongolia The International Development Association Credit number: P131290 E-Health Project Mongolia INVESTMENT ACCOUNT STATEMENT For the period from Jan 01, 2020 to Dec 31, 2020 /in US Dollar/ Description Dec 31, 2020 Dec 31, 2019 Opening balance: 203,829.20 - Add: 254,444.64 730,283.18 Designated account 254,167,25 730,283-18 Replishment 277,39 - Deduct: 182,170.13 526,453.98 Transferred to the Sub account (State fund) 12877728 - Consulting service 48,596-77 65,163.93 Non consulting service 6,796.08 54,152,31 Goods - 273,211,82 Incremental operation cost - 13392.9 Closing balance 276_103__1 829.20 A r ed y: Prepared by: IPIU Coordinator IPIU financial management specialist The Government of Mongolia The International Development Association Credit number: P131290 E-Health Project Mongolia OPERATION ACCOUNT STATEMENT For the period from Jan 01, 2020 to Dec 31, 2020 lin US Dollar/ Description Dec 31, 2020 Dec 31, 2019 Opening balance: 6,367.70 4,129.71 Add: 130,041.58 205,589.08 Advance from Designated account - 71,848,43 Advance from Investment account 128,780.06 133,925.92 Replishment 1,261-52 Other income - (185.27) Total additions 130,041.58 25,272.71 Deduct: 128,467.00 28,447.54 Transferred to the Petty cash 3,567.11 3,746.48 Transferred to the Advance account - - Consulting service 100,64237 129,511.65 Non consulting service 3,731.82 50,737,00 Goods 4,151.85 6,388,72 Incremental operation cost 14,691.72 12,967,24 Advance 1,682.13 - Total deductions 128,467.00 203,361.09 Closing balance ___7,942.28 6367.70 Approved b Prepared, nkhbo6 P.Suvd IPlU Coordinator IPIU financial management specialist Notes to the financial statements 1. Project background The Government of Mongolia and the International Development Agency of the World Bank had signed Financing Agreement in 2015 for implementation of E-Health Project during 2015-2020. The Mongolian Parliament ratified the Financing Agreement for implementing the E-Health Project on 9 July, 2015, The Ministry of Health officially launched E-Health Project on June 2, 2016, During its mid-term review in May 2018, the Project has undergone substantive restructuring that resulted in consolidation of original five components into restructured three focusing on design, development, implementation and piloting of the Health Information Exchange Platform and other surrounding activities. This consolidation is to ensure that the Project Development Objective is achieved by the close of the Project. The objective of the Project is to improve integration and utilization of health information and e-health solutions for better health service delivery. Project Components: Component 1: Building the E-Health integration system Component 1.1: HIEP and relevant e-service development; Component 1.2: Standardization; Component 1.3: IT infrastructure development; Component 1.: Enterprise Architecture implementation; Component 2. Institutional strengthening and capacity building Component 2.1: Building the health information management capacity of health professionals: Component 2.2: Establishing e-health system base through connectivity to the high- speed intemet: Component 2.3: Establishing the training center Component 3: Project Management, NOTES TO THE PROJECT FINANCIAL STATEMENTS 2. Project expenditure and financing Following changes made to the project financing in relation to the amended financing agreement: Categor The World Bank financing Percentage Amount of the Am 'ount of the allocated financing allocated financing (in SOR) (in USD) Component # 10 380 744.80 15098 347.0 100% Building the E- health integration Component #2:.-1 493 506.49 2 3000.00 100% Capacity building Component#3 87 213 653,00 T10 Project management Total 12 700 000.00 19 500 0OO 3. Cash and cash equivalents The PIU opened the Designated, Investment account, Operation account, and Cash on hand for carrying out project activities. As of December 31, 2020 the cash and cash equivalents are as follows: -- - --- 31-Dec~20/in US Dollar/ 31-Dec-2020 31-Dec-2019 Designated account 508,843,03 284,012.57 Investment account 203829.20 276,10371 peration account - State und 636770,94228 Cash on hand IMNT/ 7_942 -- -~ 79,03993 ~ 568,068,56 4. Cumulative project expenditures 3.1 The expenditures for Subsidies under part-A of the Project In US Dollar/ Cumulative Dec 31, 2020 fThe cumulative project expenditure prior to the reporting 1 770 42705 eriod Subsidies A _ 2607 35.75 Subsides B125831.5 -- -- 4 503 594.55 4.2 The expenditures for Goods, Works, Consultants" training and Workshops, and Operating Costs under the Project /in US Dollarl Cumulative Dec 31, 2020 The cumulative project expenditure prior to the reporting 1 770 427.05 penod . . .. Goods _________ 2 114 472.36 Non consultnats service -- 364 625.92 Consultants' services . _ __236763.51 Traging and WorIkýshp_ Operating C sts 17 305.71 Total 4 503 594.55 4.3 The expenditures for Management Fee under Part C(3)(bl of the Project Cumulative Dec 31, 2020 The cumulative project expenditure priorto the reporting 599584,93 period PMU StaffSalr_ _ _ _____ 100 642.37 tation 2141.52 rransportation and Fuel Cost 1981.66 Rental 1399.48 Cornmunication andTejephone Cost 6066.03 Office Supply and Administration _19957 PMU Staff travel Cost 273.27 Suppts-___2015.94 Adverti_sementCost_ 5866,84 Other cost 1072.44 _Good for Project Management (ofice egiupments 2376,24 Total 725 416.48 4.4Other expenditure 31-Dec-2020 31-Dec-2019 Tenderexpense __332686 470310 Other expenditure 3ý325,867 4703,10 5. Funds 5.1 Net interest earned 31-Dec-2020 31-Dec-2019 t Tnerest eaned __ 45 570.96 46 389.08 Total 45 570.96 46 389,08