N                                                                 k~lc~(S~Siii (tk,\1c1  ibI4i .KicupI)si ,YliI:iiiv d 0I85 1882274
I ndepeIndIet Aulditor% Reiprt
To Project Director of the Socio-lKconomitlc Rein  egrnlion
Project ill Southern Thailau
O~piniion
 \Ve hwe udited the financial 1tatemlInt of SotCI( ICO )NOMIl RIINITfGRAI)N
R     Cl1   :IN St' 111l RN IA Il AN I)  [ H23l b implemented by I hila Ahmar I oundation
,Il \l \ 'w hiCh comprises the Receipt and lisbursement Report, Dcsignatcd Account Report, the
StatenI of Expenditure <SOlI S   and Detailed Statemen of Income for the  period from
Septeimber 13. 2019 to December 31, 2020, and Notes to the Financial Statements including
signiticant accounting policy
in our opinion, the financial statements are prepared in accordance with the requirements
for the preparation of Financial statements as set out in the Financial Management Manual for
Socio Economic Reintegration Project in Southern Thailand (TFOBO231) Clause 5, Clause 5.2,
Clause 5 2 1 and Clause 5.2.2, applying a cash basis, prepared by Hilal Ahmar Foundation for the
Socio-Economic Reintegration Project in Southern Thailand (TFOB0231) dated 15 November
2019.
Basis for Opinion
We conducted our audit in accordance with Thai Standards on Auditing. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statement of the Project implemented by the HAF. In the report, the
Auditor's responsibility for auditing the Financial Statements of the Socio- Economic Reintegration
Project in Southern Thailand (TFOBO231) implemented by the Hilal Ahmar Foundation, is
independent from Hilal Ahmar Foundation HAF in accordance with the Federation of Accounting
Professions' the Code of Ethics for Professional Accountants as prescribed by the Federation of
Accounting Professions. 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.
2


A. ktlnNs11Neki in Notc, 2 I , wo1)L 1 di lt   Ifio;Wkci  IIeuets t0e Fina 1ia Yaleinenis are
I''~ ~ ~  ~~11 d t oac~dne'  i c he  .1 bas is oF IILookintink' 1Jh li '.n6;6 aasaeet  re prepared
NlWIIi. 111 Ii 1w'Pi trt IiConwhlimci ilh ~  11C llovisiloll for tile rwparwloliinncia1ll
NleiCIllJ is(Iidei the linding silippol cont01d  rfeleried to Ilove As a rslt, the (Ifinnia
111ellnt hl na'  not  he  tit ii/i  1() h  oler  i ilPw"k  I heW  111111Cti   1101stlknts  are  prepared  hor
inlomi .11 onl only Ilm0 the lilal Alimmaa I'oudbiiion and the World iak Our opinion has not
hangewkd duei to this matt(er
Responsibilities of Nia nngement for- lite Finnncinal Sincmels
Ililali Ahmar Ioundation is the implementing entity of the project and is responsible for the
preprIation of these financiol statents in accordance with requirements for the preparation of
financial statemnlts of the project stipulated in the Financial Management Manual for Socio - Economic
Reintegration Ptoject in Southern Thailand (TFOBO231l)clause 5, 5.2, 521 and 522, using a cash basis
in preparing the financial statements, dated November 15, 2019. Ililal Ahmar Foundation determines the
necessary to enable the preparation of the financial statements that are free from material misstatement,
wheiher due to fraud or error.
In the preparation of the financial statements of the Socio - Economic Reintegration Project in
Southern Thailand (TFOBO231), Hilal Ahmar Foundation is responsible for assessing the projects ability
to continue operating (as appropriate) and the use of accounting criteria for the continuous management
unless the management intends to terminate the project or stop the operation or is unable to continue the
business.
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 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 Thai Standards on Auditing 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 these Project financial statements.
As part of an audit in accordance with Thai Standards on Auditing, we exercise professional
judgment and maintain professional skepticism throughout the audit, We also
3


0kiLit I  iw ii   kkl otf  ,cl  i ,a  l ibshi fftil t o ile I Iw 1 -111t il  CIAfd len it ,  H ililer  duc
to  I.tthI 01 i thivi  Jl Migii  Atl |1W 1 l aiu   II |11dit  aw IIare k it  yot'\a   jo  iI(010  II ri 1',  iid  nhiill  utl
0  Ikliwe  111(1 li f i   '111 ic Iai l all  ollp loprhiaC  lo  I) \,ile a   at 1i  101 1  ppiniol  'Iie fII  of  fl'il tde dt ill
miL(  1ii  I1i\tati2llient  10w Ill  olil  hai  sl hi tI i rethu,  wl or one  fe jliIIllg  ffrom  cro r.  I,, Il7f id  may
i ' l '6   k 1l111wn, tolell, Ic tell th 1 W I i lli  llls0 Iil olls, Io l hif w,,o (I 10 Ow frride 04  inTernal control
*   Ill.   111 N 1tit 110   l   inteutI  contlJ  1 01 l l t  to  the  iltidt  Ill  order  t(  design  aidiI
rIocodhi e that   rfe apli 01t1ide III the 6 hkJlt:aillLcS. but not tor the purpow o I expressig an opinion mi
the eflectiiless ol the Project Intera l control as impleiieted by the I IA I
' I  zi1( 1111 (T       ol Aoko1iellew f JecoItillug 1l 1i  used and t1w rellonlen11s of accounting
et ildies ald e litdi ihclosure Isc ad 1 V  1he tllelliallwu
- Conludes on the appropriateness of managemenls use of the going concern basis of
Jccounting and, based on the audio eNidence obtained, whether a material uncertainly exists related to
kects or conditions that may cast significant doubt on the Projects ability to continue as a going
concern if we conclude that a material uncertainty exists, we are required to draw attention in the
auditor's report to the related disclosures in the financial statements or, if' such disclosures are
inadequate, to modify our opinion Our conclusions are based on the audit evidence obtained up to the
date of the auditor's report However, future events or conditions may cause the Project to cease to
continue as a going concern
* 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,
We have communicated with 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, The report is intended for the information of the Hilal Ahmar
Foundation and the World Bank,
(Miss Sarinya Yingsaman)
Certified Public Accountant
Registration No, 8573
S-Y Audit Office
14 June 2021
4


Hilni Ahmar Foundation
Socio-Economic Reintegration Project in Southern Thailand (SERP)
Receipt and Disbursement Report
For the period from 13 September 2019 to 31 December 2020
Note       US dollar            Baht
Fund receved from the Wot Id B-ink      5          925,40854       27,843,741253
Interest eaned                                          158.03           3,138.76
Difference of exchange rate                                 -           636,152.97
Total revenue                                          925,566.57       28,483,034.26
Disbursement: -
Sub-grants                               6          432,718.99       13,200,000.00
Consultant's services                    7          244,892.76        7,6410620,00
Goods                                    8           26,393.50          828,305.00
Training and workshop expenses                       62,782.75         1,898,488.04
Operating costs                                     101,530.04        3,216,181.72
Total expenditure                                      868,318.04       26,784,594.76
Revenue over (under) expenditures                       57,248.53        1,698,439.50
Reconcile the balance as of December 31, 2020
Petty Cash                                              331.96            9,840.54
Cash at Bank                              4           56,916.57        1,688,598.96
Total balance                                           57,248.53         1,698,439.50
Notes to the financial statements are an integral part of these financial statements.
Certified statement
Sig ned  . ............ ................ .....  .... .................. ...  ...........
(Mr. Iskandar Thamrongsab)
Project Director
of the Socio-Econonic Reintegration project in Southern Thailand
5


Hai Ahmar Foundation
socio-Economriic Reintegration Project In Southern Thailand (SERP)
Designated Account Report
For the period from 13 September 2019 to 31 December 2020
Account Name:    Hilal Ahmar Foundation (Soclo-Economic PcIntegration Project)
Account No.      800-02H760-127 Krung Thai Bank Public Company Limited,
Charoen Pradit Branch
Address          No. 23/1 Nong Chik Road, Sabarang Subdistrict,
Mucang Pattani District, Pattani Province 94000
Note           US dollar
Balance as of September 13, 2019
Add Fund received from World Bank               5            925,408.54
Interest Earned                                             158.03
Total Income                                                 925,566.57
Less Sub-grants disbursement                    6            432,718.99
Consultant's services                      7             244,892.76
Goods                                      8              26,393.50
Training and Workshop Expenses                            62,782.75
Operating Costs                                          101,530.04
Total Expenses                                               868,318.04
Total                                                         57,248.53
Le5s Petty Cash                                                  331.96
Operating Account - Thai Baht                              1,568.59
Balance as of 31 December 2020             4              55,347.98
* Converted to Thai baht equivalent to 1,641,067.61 baht ($55,347.98*29.65 baht)
Notes to the financial statement are an integral part of these financial report.
6


Hilal Ahmar Foundation
Socio-Economic Reintegration Project in Southern Thailand (SERP)
Statement of Expenditure (SOEs)
For the period from the 13 September 2019 to 31 December 2020
Item              Disbursement Category    Total
Category 1  Category 2
Sub-grants                    432,718.99         -    43218.99
Consultant's services                 - 244,892.76    244,892.76
Goods_-                                   26,393.50    26,393.50
Training and workshop expenses        -   62,782.75    62,782.75
Operating costs                       - 101,530.04    101,530.04
Total              432,718.99 307,675.51  868,318.04
Notes to the financial statements are an integral part of these finandal statements.
7


Hial Ahmar Foundation
Socio-Econormic Reintegration Project In Southern Thailand (SERP)
Statement of Income
For the period from 13 September 2019 to 31 December 2020
US dolar           Baht
Income
lintia Advanced                                     500,000.00      27,843,742.53
Fund receied from the World Bank                    425,408.54
Ditference of exchange rate                                           636,152.97
Interest earned                                         158.03          3,138.76
Total revenue                                          925,566.57      28,483.034.26
Expenditure
Consutarit's servites
indivdual Consultant                                230,491.84       7,181,620.00
Corporate Consutant                                   3,212.61         100,000.00
Coordnatbn fee                                       11,188.31        360,000.00
Total Expendture                                       244,892.76       71641,620.00
Goods
Office supples                                       21,403.77        670,555.00
Office Furniture                                      4,106.74         129,150.00
Speaker/Digital Camera                                  882.99         281600.00
Total Goods                                             26,393.50        828,305.00
Training, Workshop and Public Awareness
Meterial supplies                                        74.55          3,978.80
Per diem                                              2,750.64         69,500.00
Accommodation                                         1,427.77          69,593.50
Travel                                                8,369.98         306,793.18
Trainers and factators                                  451.66          31,500.00
Other expenses related to the training course         1,423.56          30,739.00
Meal                                                 15,426.97         513,802.00
Meeting room rental fee                                 244.78            600.00
Workshop arrangement expenditure
Alowance for workshop particants                        122.58           2,000.00
Accommodatbn fees for workshop participants             422.55           5,100.00
Travel expenses for workshop particants               1,114.24          13,600.00
Other expenses related to organizng the workshop        199.66          6,450.00
Meal                                                  1,239.41          14,482.00
Meeting room rental fee                                  96.75          17,000.00
Domestic meethg expenses
Travel expenses for attendees                        10,012.04         286,147.56
Meals and snacks                                     12,566.60         365,872.00
8


AccommnOdctton cost
ACtllwanc/ CO-ntion                                 3,086.25          66,880.00
3,334A5          77,000,00
Meeting rn rental fee                                   121              2500
wor)1011A We192A18                                    12,500.00
her inted expenses2263
Total Training, Wo,kshop and Public Awareness             647 1               ,04
Sub grants
Provided flnancal support to 200 IP3s                 326,676 17      10,000,000,00
Provided fund support to 16 community sub-projects     106,042,82       3L200,000.00
Total Sub-grants                                          4327            13,200,000.00
Incremental Operating Cost/IOC
HAF project management fee                              41,000,00       1,272,230,00
Cost of materials, equipment, stationery                 9,683.09        310,312.00
Advertising costs                                        4,873.03        138,880.10
Office rent                                             10,219.62        320,000.00
Document translation fee                                 3,270.12        101,60000
Phone bill                                                 559.33         18,820.50
Bank fees                                                 881.88          33,478.70
Travel expenses, taxi rental fees, expressway fees, water bills  13,631.38  422,717.58
Car rental                                               1,000.30          34,600.00
Repair and maintenance costs                                58.99          1,850,00
Food and beverage                                        2,171.53          94,153.00
Utilities such as water bills, electricity bills         1,573.03          47,483.95
Employer's contribution to social security               5,390.46         171,734.80
Accident insurance for project staff                     3,052.60          94,600.00
Miscellaneous expenses                                   2,047.85          66,379.47
Coordination fee for field visits                          772.01          45,600.00
Maid wages                                               1,336.75          41,500.00
Bank interest tax                                            8.07            241.62
Total Incrementtal Operating Cost/IOC                      101,530.04       3,216,181.72
Total cost                                                868,318.04       26,784,594.76
Revenue over (under) expenditures                          57,248.53        1,698,439.50
9


Nt'io   n I  11111u1Ic elieiriolion  I'ro e c  in  siulliherin TI iland 1NSK ill
Noles in) 1iicini NInMenenis
For tihe yenr eiided Dirceibler 31, 211211
1 lI;mck%gtroi Id
1hai aIndI  four southIrnmost prov Iices, w I I Ih istorica I ly f'Ormed part of an independent M; ay
SlL0na1e that -aS anlle\ed b the K  ingdom of Siam iii I 90), arc the center of a protracted s b-ntiona i
cnlIJLct Since the reZion's incorporation into 1ha and, the locaL Malay Muslim population, which today
re1e1nCts aboLt 75 percent of the total population in the area, has been experiencing a sense of social
and Ceononmlic exclti sion, d iscrimi nation and marginal ization.
Violent resistance against the government's assimilation policies and perceived domination of
teI state in the Deep South occurred over several periods during the second half of the 20 century,
belbre the late 1980s. The current phase of the insurgency began to reemerge in the late 1990s, and since
2004 violent events have resulted in more than 7,000 deaths and 13,000 injuries in the region. The
drivers of this violence, including a strong sense of historical injustice and resentment against the
perceived impunity of agents of state violence, fuel the conflict that presents profound challenges to the
socia and economic development of the region.Southern Thailand continues to lag behind the rest of
country on important social and economic indicators.
The Southern Border Provinces Administration and Development Policy 2017-2019, prepared by
the National Security Council, explicitly recognizes the complexity and sensitivity of the causes of the
conflict. It outlines a number of objectives and related initiatives to achieve its vision of a society -*safe
and free from any conditions contributing to violence, where -everybody's way of life is protected and
improved on the basis of a multi-cultural society, with participation in a sustainable peace-buiding
process.
A critical challenge for the government's policy in the south is supporting the transition of combatants to
civilian life. Its -Bringing People Home~ program, started in 2009, has to date served about 3,000 beneticiaries
(actIe combatants, individuals in non-combat support roles, and sympathizers) through a multi-sectoral approach
that includes judicial elements, skills training, livelihoods support and grants for reintegration support in areas of
r turn. However, it suffers from institutional fragmentation, is insufficiently responsive to the vaning needs of
former combatants (often referred to as "returnees-*, and is primarily security driven. This constrains the ability of
beneficiaries to undertake social or livelihood activities.There has not yet been a systematic effort to review costs
and assess socio- economic outcomes. In addition, there are gaps in important areas, in particular with regard to
treatment for post-traumatic stress disorder, the involvement of communities in the reintegration process. and the
involvement of private sector stakeholders.As a result, the program has been perceived negatively among both
beneficiaries and communities.
10


v  N1OHllient  I11  rco a icri/od  lile  'Ir1cili11g)  of  (le  cl  ciil  p PgI ll 1 ild  1l1e  irnp1 rlacil   of*
I,     i k L ll e i  I f L  I I IIi l   coiW[' Q0lli lil L  ill  (11   mllOIldkor coIC(  1 1  CIC'c  Hld  gn ernI ILl \rraiegy
oi '   1  , h is ni eIColocl ed Wl  or Id  ll,ink  ippoll i0  10  pilOill Jar cilitaning IrA  alppralhl  I his
te-chnjl upport \\ill capitali/e 1upn he Horld Ilknk' cx1clsive experience in supporting peace
ldin i m'Iure in oluthiern I ha Ind 1i over a dcidc, il saniding as an inclusive and respecied
port1 peace b1ilding in tlie region, and i1s global experience in the area of demobilitation and
I  fleinteratiOi of  oriOler co l ants
. Project Ohjecti% e :ind Approach
Ihe objective of the Project is to assist the government to pilot an enhanced socio economic
re0iterjT11 process for selected former combatants.
The Project will pilot a new approach to reintegration with a focus on social and economic
measures. and delivered through inclusive and transparent delivery modalities. The aim of the Pilot is to
cest new approaches and civilian implementation modalities that should improve the socio-economic
reintegration experience of former combatants If the Project is deemed successful, the government will
have at its disposal a set of social and economic support processes, and an implementation arrangement
with systems and procedures that it can draw upon in the future. At the same time, would-be former
combatants will have better prospects for a viable return to civilian livelihoods, a clearer understanding
of reintegration support they can expect, and a better understanding of how and by whom it will be
delivered.
11


1111sis toi  li i ill lowi   oi I itltI hi n  i  Ei t'il
31lim Itsinin orf Itantl prot'eehI
i    Mil ul \h Vl 01) 14n11ioil ia 11s oPenled  A )l,-irnn(-I  AttLonnt vvih  a lwil ol 5 , 00ot j()   1; ¾
1 l,t  11t kin g  ,i i  t  alk  111l c C|h I  lliplill  I  illult2 , (I IChu i t  PI,wil 411  im ng D 1L
1'tnil PIo ince Ihe atoUnl IJunle is I ihil Ahinni IVumihiillon -,l in I comimit Reanterattlor
I    tll OIk \m¶1ii Son (l'in  Illail d. ACt mUInt nui lbel  )  0 2I76) I27 in  (SI) CIirrency to rOele the
f 1und Irom the \'ll Id tlnk In addition, the pI1ct will open it current account for the
o       fiit flow of, l,nds and -ctiitfies in local cullrency Ihe prolects current account will he
opcicd in I hal bahl
1 he utilization of the Designated Account is subject to World Bank disbursement
reguIauis guidelines as for the project intended purpose'I he payment of expenses must be
based on actual HnCLUTence and will be replenished on a monthly or quarterly basis
The fund transfer from the Designated Account to the individualfcommunity who are the
benclc lries of the project will follow the payment schedule of the sub project contracts This
proces nill he operated through Designated Account to the project's Operating Account and
then to the individual and/ or community accounts who are the project-s beneficiaries Its aim is to
amid-the exchange rate fluctuations. The project fund will be disbursed from the designated
account to the project's operating account only when the sub-grant disbursement will be made to
the beneficiaries of the project.
3.2.Significant accounting policies
3.2.1.Basis for presentation of financialstatements
The accounting of project-s financial statements was prepared in the form of the Receipt
and Disbursement Report and Designated Account Report, The cash basis of accounting is used
for the project record as specified in the Financial Management Manual, prepared by Hilal
Ahmar Foundation which. is mutual agreed and accepted by the World Bank
The preparation of the financial statements of the project consists of the Receipt and
Disbursement Report,Designated Account Report. Statement of Expenditure (SOEs) and the
detailed Statement of Income
12


i    liForelin cuzrrenIcy translat11ion
~ gnancial statements are piritied in US Dollars 1he vitidraa  fro  designated
u  prsnd s US Dollar coiIerted to 1hal baht at the exchange rate on the transaction
ExpendItre in bal eurieny durinlg the accounting period are conv erted int UoS dolars
iI the echang rAte on the w ithdraýwai date and the amounits on first-in, firsi out hasis
4 Cash at Bank
1 unds receix ed f-rom the World Bank wvill be deposited in a savings account (Designated
Cnut Krung Thai Bank Public Company Limited, Charoen Pradit B3ranch, Muang District,
Pa[ani Pro\ine,3accounti number 800-0-28760-127, a US dollar account. Current;Operating
accouni number is 929 6-01645-2 for expenses paid by cheque into the account in Thal baht
As of December 31, 2020                                      US dollar
Designated Account-Krung Thal Bank USD 800-0-28760-127          55,347.98
Operating Account - Krung Thai Bank Thai Baht 929-6-01645-2        1,568 59
Total                                                          56 916'57
5. Fund receivced from the World Bank
For the period from [3 September 2019 to 31 December 2020
Transferred date                                                US dollar
I January 2020                                                   500,00000
12 June 2020                                                     179,228 54
14 August 2020                                                    60,51268
20 October 2020                                                    69,61036
18 November 2020                                                  116.05696
Total                                                         925,408.54
13


d ' ~fro  1 September 01 Po) 31 Pk ie'inhcr .
ild upport to 200 IPils  6,6 7                        3266767
Crnsu            (t Cat Is services
i is the expenses reued to the pr-oject oficers. (uunsultation fees for the Occupational
Iffice. U erdinat ion Fees. and Oflicers visitinig the inspection area
Sthe period from 13 September 2019 to 3 1 December 2020
USdollar
ndi i1dual consultant                                             230,491 84
eporaie consultant                                                   3,21261
Coordination fee                                                     11,188,31
Total                                                            244,9276
8. Goods
lt is the cost of purchasing personal computer, office accessories, speakers, digital
cameras and software program for carrying out project activities
For the period from 13 September 2019 to 31 December 2020
US dollar
Office Supplies                                                     21,403.77
Office Decoration                                                    4,106.74
Speaker Digital Camera                                                 88299
Total
14


9. Fixed asset register
As of December 31, 2020, the following assets have been procured:
Unit: US Dollar
No             Item            Date of purchase  Amount   Price     Responsible Unit
Office Su plies
1   Notebook Computer            23 Mar. 20      3       2,768.45       HAF
2    Projector                   23 Mar. 20      3       1,208.71       HAF
3   Voice Recorder               25 Mar. 20      13      1,713.80       HAF
4   Anti-Virus Software          26 Mar. 20      8        165.16        HAF
5    10.5 Inch Tablet            26 Mar. 20      2       1,614.26       HAF
6   8 Inch Tablet                24 Aug. 20      20     7,12            HAF
7    Portable Power Bank         24 Aug. 20      22       392.22        HAF
8    Router                       3 Oct. 19      2         98.71        HAF
9   Desktop Computer             25-Nov-19       5      3,935.14       HAF
10   Uninterruptible Power Supply  25-Nov-19     5        274.28        HAF
11   Document Printer            25-Nov-19       4       1,463.70       HAF
12   Desk Phone/Fax              25-Nov-19        1       148.11        HAF
13   Office Software             25-Nov-19       8        496.43        HAF
Total                                    21,403.77
Office Decoration
1   Chair                        25-Dec-19       7        475.92       HAF
2   Table (3.5- 4 Feet)          25-Dec-19       7       1033.21       HAF
3   Conference Room Table        25-Dec-19       6        406.58        HAF
4   Meeting Room Chair           25-Dec-19       30       309.78        HAF
5    Filing Cabinet              25-Dec-19       4        632.46        HAF
6   Printer Stand                25-Dec-19       3        338.82        HAF
7   Reception Chair              25-Dec-19       1        645.37       HAF
8   Whiteboard                   25-Dec-19       1        264.60        HAF
Total         4106.74
S aker/Diftal Camera
1   S eaker                     25 Mar. 20       3        361.22       HAF
2    Di ital Camera Sub-Total    26 Mar. 21      1        521.77        HAF
Total                                       882.99
265393.50


101 Conipliance with the conditions of the grantagreenent
Tihe performance of the work is in accordance with the terms of the contract without
enti0cant flows
1! Approval of the financial statements
These financial statements have been approved for issuance by S.Y Audit Office on 14
June216