Accountants and Advisors NATIONAL STRATEGY FOR DEVELOPMENT OF STAT SCS PROJECT INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD) GRANT NO. TF0A4504 REPORT OF INDEPENDENT AUDITORS AND SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM 17 JULY 2017 TO 29 DECEMBER 2019 A NATIONAL STRATEGY FOR DEVELOPMENT OF STAT ISTCS CONTENTS Statement of Management Responsibilities 3 Report of Independent Auditors 4 5 Balance Sheets Statements of Sources and Uses of Funds Statements of Uses of Funds by Project Activities Statements of Designated Account Statements of IBRD Expenditure Withdrawal Schedule 0 Notes to the Special Purpose Financial Statements 11 STATEMENT OF MANAGEMENT RESPONSIBILITIES Management has prepared and is responsible for the special purpose finarc ial statementn a notes of the National Strategy for the Development of Statistics for 2018-2030, ndue g D e Institution, Human and Information Communication Technology Capacity Building P.as for 21 Project (the "Project") financed by the International Bank for Reconstruction and Dave oprnent G TF 0A454. They have been prepared in accordance with the basis of accoLting desrhed n No 2 c the accompanying special purpose financial statements. The Project maintains internal accounting control systems and related polic i p, I , to provide reasonable assurance that assets are safeguarded, tIat trc .cnmr r ic' accordance with management's authorisation and properly recorded, aid th: aui- i r ,- relied upon for the preparation of financial statements and other financial nfoto0 TI self-monitoring mechanisms that allow management to be reasonabiy confiI: that a the Project's administrative procedures and internal reporting requirements uertL e" inherent limitations in the effectiveness of any system of internal contro inclu i ' i error or the circumvention or overriding of controls. Accordingly, even an effee nt can provide only reasonable assurance with respect to financial statements pi srtior Yusif Yusifov Ramil Yusifov Head of PMU Procurement 3;ecia s 29 December 2019 Baku, Azerbaijan 3 ,MOO RE 13,zeynalabdin Taghiyev Street Baku,Azerbaijan, AZl005 +994 12 490 77 47/4B/49 +994 12 490 77 50 REPORT OF INDEPENDENT AUDITORS To the management of the National Strategy for the Development of Statis s for 201E-203j Including Detailed Institution, Human and Information CoMmunIcat n Tecnoelogy Capac: Building Plans for 2018-2022 Project Opinion We have audited the accompanying special purpose financial staten Jat Development of Statistics for 2018-2030, Including Detailed I!rrsttti, Communication Technology Capacity Bui ding Plans for 2018-2022 Frtm the International Bank for Reconstruction and Development ("IE i N comprise the balance sheets as of 29 December 2019 and 31 Dec(:.e: 1i,J and uses of funds, statements of uses of funds by project activit es :,-ei S f statements of expenditure ("SOE") withdrawal schedules for the ye. tm ro significant accounting policies and other explanatory notes. We -ave .ca compliance with conditions of the relevant Grant Agreements, the "fonrc. Bank regulations of the Azerbaijan Republic. In our opinion, the accompanying special purpose financial statements refeic L all material respects, the financial position of the Project and of the specuI December 2019 and 31 December 2018 and related sources and components and movements in special and project accounts for the :i t1i the basis of accounting described in Note 2 to the accompanying spl i and the Project is in al material respects, in compliance with the con Agreement and the World Bank guidelines and laws of The Republic ot Azer r dLi - ~ 29 December 2019 and 31 December 2018. Basis for opinion We conducted our audit in accordance with International Standards audit of financial statements and to compliance auditing, with a responsibilities under those standards are further described in the A tc of the Financial Statements section of our report. We are indepencer. -Ji the ethical requirements that are relevant to our audit of the financ have fulfilled our other ethical responsibilities in accordance with the.-.- audit evidence we have obtained is sufficient and appropriate to provie a b r , o Managements responsibility for the financial statements Management is responsible for the preparation and fair, presenta.or o e f n as tr accordance with the basis of accounting described in Note 2 of Ih ccpy e financial statements. This responsibility includes. designing, impl mnn and a t nn controls re evant to the preparation and fair presentation of financia stmes th e material misstatement, whether due to fraud or error; selecting and appyig ap p at s policies, and making accounting estimates that are reasonable in the c roumstanc In preparing the financia statements, management is responsible for asess ng the C 's continue as a going concern, disclosing, as applicable, matters related to go inc ce a going concern basis of accounting unless management either inteid to mqucar cease operations, or has no realistic aiternative but to do so. Those charged with governance are responsible for overseeing C process. p_ roce s, V- ev > I, -, M, i I --n,i r i ni iE! rn,ie rin p r c , L;t:iie, riiuu tiuu L Lhe w0TII -~ 4 A MOORE Auditor's responsibility for the Financial Statements Our objectives are to obtain reasonable assurance about whether the `inanc a- staer< a-? free from material misstatement, whether due to fraud or error. and to i;Sue an a u includes our opinion. Reasonable assurance is a high evel of assurance, bI is not audit conducted in accordance with ISAs will always detect a mate a tren M v Misstatements can arise from fraud or error and are considered iate i n aggregate, they could reasonably be expected to influence the econoim c, o)i) C, basis of these financial statements. 29 December 2019 7 5 NATIONAL STRATEGY FOR THE DEVELOPMENT OF STATISTICS FOR 2018- NCLU DETAILED INSTITUTION, HUMAN AND INFORMATION COViMUN CATIOI CH OL CAPACITY BUILDING PLANS FOR 2018-2022 PROJECT - GRANT No. TFDA4504 BALANCE SHEETS AS AT 29 DECEMBER 2019 AND 31 DECEMBER 2018 (Expressed in US dollars) 291 Decernber Decorn Note 2019 2018 ASSETS AND CUMULATIVE EXPENDITURE Cash at bank IBRD Grant Designated Account No. TF0A4504 4 4,200 4,200 Cumulative project expenditure Grant No TF0A4504 9 -24 TOTAL ASSETS AND CUMULATIVE EXPENDITURE 243,924 SOURCES OF FUNDS Project financing Grant No TF0A4504 3 24 TOTAL SOURCES OF FUNDS 24!924 --Q Yusif Yusifov Ramil Yusifov Head of PMU Procufement Sprcialls1 The notes set out on pages 11 13 form an ntegral part of these financial staemer q 6 NATIONAL STRATEGY FOR THE DEVELOPMENT OF STATISTICS FOR 2018-20,: CLU NCIX DETAILED INSTITUTION, HUMAN AND INFORMATION COMMUNICATION TECHNOLOGY CAPACITY BUILDING PLANS FOR 2018-2022 PROJECT - GRANT No. TF0A4504 a STATEMENTS OF SOURCES AND USES OF FUNDS FOR THE YEARS ENDED 29 DECEMBER 2019 AND 31 DECEMBER 2018 (Expressed in US dollars) Note 2019 2018 1t OPENING BALANCES IBRD Grant Designated Account No. TF0A4504 2 893 2,893 ADD: FUNDS RECEIVED BY SOURCES IBRD Grant NoTFOA4504 219,92.4 24 OOC TOTAL FUNDS RECEIVED 219,924 24,000 24 N LESS: EXPENDITURE BY CATEGORIES IBRD Grant NoTFOA4504 Consultant services 170,860 - :1 Materials and services 22,990 Office manager 8,826 10,294 Translation services 7,059 Audit fee 4,266 - Training 4,072 4,404 Bank commission 544 40% TOTAL EXPENDITURE 218,617 21,107 23. - CLOSING BALANCES IBRD Grant Designated Account No. TF0A4504 4 4,200 2,893 4,200 2,892 74 Yusif Yusifov Ramil Yusifov-- Head PMU Procurement Spec,iall 1t The notes set out on pages 11-13 form an integral part of these finanial s s 7 � f г'� Сз Га G'j � � о Q �пи�}�� _ с� а -+ л �� � � � с, 3 sл : nr �. -t дs :� � � -+ °� "� � � �. ai � � � � rn � дэ С? t � ^ � г = � к z vc iи п�г�� У � � �; � � °� a��i '�.-<�л �� t�. � ° �. п .+ п п 1_. т � С .� � .* п> -ц �р n� А � D � 3��°�-�-� �'�, * � � се � са-D � � II{Л����!�7 i s,�ц, о Сз ® а. о � Gг. т `-"' �' D $ �о .й w �• �и � о z � ,д°„ � т �-, � _ Э д � '� и' у О � � �} l . �\�.,. � � �7 � � �{/� �-� 1, � � � c�r � � " �, О � ,.� � - ' , � r� � Э � п �• � _. �_ � � с� �+ � � Q ��.. \�''�, -' с � � �- Й " ° � 'и � т �� � �г� � ( т w гц т т _ s_ сэ � � z , �� �сз . � 4 �: � � � � �,� , - - � � р r � ,�°�- ; _ � Q + � i � j � z � '�а � _s:W иа � � � - �? 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Р С ��. �Р '�► ; � ..._ °7 �" ` '�Ч '�V �, ..'1 . .i ......... ...... ' ..,.._.. ...' � " aZ � __.� NATIONAL STRATEGY FOR THE DEVELOPMENT OF STATISTICS 7'C" 2,013- DETAILED INSTITUTION, HUMAN AND INFORMATION CO'Vift.11J , i': 'kT10f. CAPACITY BUILDING PLANS FOR 2018-2022 PROJECT GRANT NoTFOA4504 NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE YEARS ENDED 29 DECEMBER 2019 AND 31 DECEMBE'-_ 2018 (Amounts are expressed in US dollars unless otherwise indicated) NOTE 1. BACKGROUND IBRD Grant NoTFOA4504 The objective of the Project of the National Strategy for Development of Str7l-' 1-.,, I, as "Project") is the improvement of national statistical system in response to rna- thus the introduction of the new information technologies, softwat telecommunication systems will facilitate the production of information and The State Statistical Committee of the Republic of Azerbaijan intends to statistical capacity building of the national statistical system as wefl as e i si 1 organizational and institutional basis, information and communication technc,-.: . as a-11, for decision making related to further strategy of long-term development in 1h,_ li,ilovvir(; Continue structural reforms implemented by the State `.-t: : -i Coi, i improvement of organizational and institutional basis of the na -fl .t ( al Use of new methods for data collection, including big data fo" -_ttl _ -.1m; if a information-, -71 Introduce flexible forms of statistical reporting through genera! ar.J J L S S C r I F- other public authorities, - 47 Human capacity building in the field of statistics- Reorganization of ICT infrastructure of the State Statistical Committee, ii-ClUd n:rod,.J-,li 1-i 3 innovative ICT products and statistical tools In order to support this ambitious plan, the State Statistical Committ,.,-- Ia_, ed I TFSCB grant. Actions within this grant will support several aspects of E, of e` 11 development of the long-term national strategy for 2018-2030 and actions in the field of institution, human and information and commu,i 1 for 2018-2022. The grant will also support human capacity of tn3 St- t:,, implementation of the plans. All of that, will finally facilitate the establishment of information and comm -Ir o production of the most accurate and up-to-date statistical products in the Sta' El,- t; reduction of costs related to compilation of official statistics by wider uSE I ItL budget economy, reduction of response burden by means of full digitiz r ,-i 77 compilation of statistics and fully improvement of electronic reporting in .hi t increasing of users trust in the State Statistical Committee, formaticr of th optimization of organizational structure of statistical bodies. It will enable the C m efficiently meet new requirements and priorities which may occur ir the fi_aure T1 Committee of the Republic of Azerbaijan is the main beneficiary of the Project Project Objectives and Description. A The objective of the Project is to support the Recipient in: (i) the preparation of a new long-term NSDS for 2018..2030 (ii) the preparation of action plans for 2018-2022 for improvin _ -fr- (iii) capacity building of the Recipient's staff in order to make i these action plans. The Project consists of the following parts- _7 Part 1: Development of a National Strategy for the Development of Statis 1 Provision of support for the development of a new NSDS for the Rec piei and 2030, including (a) collaboration of detailed action plans for the kears improving statistical infrastructure-, and (b) carrying out a review of the status I-e sta NATIONAL STRATEGY FOR THE DEVELOPMENT OF STATISTICS FOR 2018- iINcL LN DETAILED INSTITUTION, HUMAN AND INFORMATION COVIMU ATIOI : CHOL CAPACITY BUILDING PLANS FOR 2018-2022 PROJECT GRANT NoTFOA4504 NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS (CONTIN JED) FOR THE YEARS ENDED 29 DECEMBER 2019 AND 31 DECEMBER 2018 (Amounts are expressed in US dollars unless otherwise indicated) NOTE 1. BACKGROUND (CONTINUED) Project Objectives and Description (Continued) Part 2: Consultations on the National Strategy for the Development Statist as Provision of support for the carrying out of national consultations ar:i disse naion new NSDS. Part 3: Action Plans Capacity-Building Provision of support for the capacity buiiding and training of the Recipients staff on t:s sra ed implementation of three (3) medium-term action plans prepared under Par of the PC ct ino study tours Part 4: Project Implementation Support Provision of support for the implementation of the Project. The withdrawal of proceeds from the IBRD Grant will be made n accordance vithe ftl,-- sc-ed I (1) Development of the National Strategy for the Development of Statistics for 2018-2030 and Deta ied 170900 1 t Plans for 2018 2022 (2) Trainings and skills development (training of implementation of plan of 24,000 10(f. action) (3) Pro ect_implementation support 55.000 1CCo TOTAL AMOUNT 249,900 The registered address of the Project is Inshaatchilar avenue 81, Baku Azerba an. NOTE 2. ACCOUNTING POLICIES a) Basis of Accounting These special purpose financial statements are prepared in accordance with the i ena i u Sector Accounting Standard ("IPSAS") Financial Reporting under the Cash Basis of Accoi u the International Public Sector Accounting Standards Board ("IPSASB"), an in depende body within the International Federation of Accountants (IFAC") and incorporate the Io ling rn accounting policies, which have been consistently followed in all material respects ar comp w ti "Guidelines: Annual Financial Reporting and Auditing for World Bank - Financed Act- v s ssuei b tve World Bank's Financial Management Sector Board- Project financing is recognised as orce of e funds when the cash is received. Project expenditure is recognised as a use f ject fns payment is made b) Period of accounts These special purpose financial statements cover years ended 29 Deceml-: 20 2018 12 NATIONAL STRATEGY FOR THE DEVELOPMENT OF STATISTICS FOP 2018- N DETAILED INSTITUTION, HUMAN AND INFORMATION COMMUN-CATIOh I CAPACITY BUILDING PLANS FOR 2018-2022 PROJECT GRANT NoTFOA4504 NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS (CONTIN .D) FOR THE YEARS ENDED 29 DECEMBER 2019 AND 31 DECEMBER 2018 (Amounts are expressed in US dollars unless otherwise indicated) NOTE 2. ACCOUNTING POLICIES (CONTINUED) c) Transactions and balances in foreign currencies The Project is domiciled in the Republic of Azerbaijan where the local currercy is the - ("AZN') Because the majority of the Project's transactions are funded and ende dollars and in accordance with the requirements of the World Bark. the ecia statements are presented in United States dollars ("US dollar", 'USD' or"LS, currency of the Project. Transactions in other currencies are treated as transp ;i ons n Cash receipts and payments arising from transactions in a foreign cu 'ency re reort: reporting currency by applying to the foreign currency amount the e- mange a bet currency and the foreign currency at the date of receipt and paymen' Cas- Ia ce currency are reported using the closing rate, which is the spot ex: .Inge re a Unrealised gains and losses arising from changes in foreign currercy ex e r: r receipts and payments. However, the effect of exchange rate changes u 1 ca Id i is reported in the statement of sources and uses of funds and other stme n rde 'I at the beginning and the end of the period. These amounts are preaed ' e vi and payments and include the differences, if any, had those cash re pts y been reported at end-of-period exchange rates. At 29 December 2018 ad 3 r ' AZN/USD exchange rate set by the Central Bank of Azerbaijan ("CBA'P was 1 /00 NOTE 3. DESIGNATED ACCOUNT The Designated Account is a disbursement account of the Project ri ain r ira r (Azerbaijan New Manat) with the International Bank of Azerbaijan in effct expenditure within defined limits, which do not require individual authG.satic lron l . :, with the Agreement NOTE 4. CASH IN BANK 2 319 2{)1 BRD Grant Designated Account No. TF0A4504 2C NOTE 6. METHODS OF WITHDRAWAL The methods of withdrawal used from the inception of the IBRD Grant up to 29 Dece follows: (a) Designated account Available amounts were drawn from time to time within limits determined by e gran i direct payment of eligible expenditure for sub-projects from the designated account (b) Statement of expenditure (SOE) Under the SOE method, the Project submits to the World Bank an app ca:on for a r s i payments already made using an Application for Withdrawal (Form 2380 E, with forms reconciliation forms and the bank account statement. NOTE 7. OPERATING ENVIRONMENT The Project's principal activities are within the Azerbaijan Republic. Laws aid reulatios at stin operating in Azerbaijan are subject to rapid changes and the Project's assets and ope:a coui be a risk due to negative changes in the political and economic environment. NOTE 8. POST BALANCE SHEET EVENTS There were not any adjusting or significant non-adjusting events occuirrd net r1 the b the date of authorization of these financial statements. Outstanding amount in designated accounts will be transferred back to BRD accounts 13 41