"Implementing Participatory Social Accountability for
Better Health Project"
Grant no.: TF018162
Special purpose project financial statements
for the period January 1st, 2019 to January 31, 2020
and independent auditor's report
Chisinau 2020
"Implementing Participatory Social Accountability for Better Health Project"
Grant no.: TF-018162
TABLE OF CONTENTS
Page
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION
AND APPROVAL OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS 3
FOR THE PERIOD JANUARY 1ST2019 TO JANUARY 31, 2020.
INDEPENDENT AUDITOR'S REPORT 4-6
SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS
FOR THE PERIOD JANUARY 1ST,2019 TO JANUARY 31, 2020:
Summary of funds received 7
Summary of expenditures 8
Summary of SOE's 9
Statement of designated accounts 10
Statement of financial position II
Notes to the special purpose project financial statements 12-19
STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND
APPROVAL OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS
FOR THE PERIOD JANUARY 1ST, 2019 TO JANUARY 31, 2020
The following statement should be read in conjunction with the independent auditor's responsibilities
stated in the independent auditor's report set out on pages 4-6. This statement is made with a view to
distinguish the respective responsibilities of management and those of the independent auditors in relation
to the special purpose project financial statements of "Implementing Participatory Social Accountability for
Better Health Project", Grant no.: TF-018162 (the "Project").
Management is responsible for the preparation of the special purpose project financial statements that
present fairly, in all material respects, cash proceeds and disbursements and uses of funds by project
components of the Project for the period from January 1, 2019 to January 31, 2020 in accordance with
International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of
Accounting" (the "IPSAS") issued by the International Public Accounting Standards Board of the
International Federation of Accountants and the World Bank's Financial Management Sector Board's
"Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB
Guidelines").
In preparing the special purpose project financial statements, management is responsible for:
* selecting suitable accounting policies and applying them consistently;
* making judgments and estimates that are reasonable and prudent;
* stating whether IPSAS and WB Guidelines have been followed, subject to any material departures
disclosed and explained in the special purpose project financial statements; and
* preparing the special purpose project financial statements on a going concern basis, unless it is
inappropriate to presume that the Project will continue its activity for the foreseeable future.
Management is also responsible for:
* designing, implementing and maintaining effective and sound system of internal control and for
revealing risks in system of internal control;
* maintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial
position of the Project, and which enable them to ensure that the special purpose project financial
statements of the Project comply with IPSAS and WB Guidelines;
* compliance with laws and regulations of the Republic of Moldova, accounting system of the Project
and the requirements of the World Bank;
* taking such steps as are reasonably available to them to safeguard the assets of the Project; and
* detecting and preventing fraud and other irregularities.
The special purpose project financial statements for the period January 1", 2019 to January 31, 2020 were
approved and authorized for issue on April 21, 2020 by the Management of the Project.
On behalf of the Management:
?(CENTRUL
PEN TRU u
i b1L1T Selfu erma
Stela RITYI 1/1 iV
Director 'J% ~ Fn ire&o
April 21, 2020 , April 21, 2020
Chisinau, Republic of Moldova *, . Chisinau, Republic of Moldova
3
19bakertiLy
65 Stefan cel Mare §i SfAnt Blvd
7' Floor, Office 705
2001 Chisinau
Moldova
T: +373 22 233003
F: +373 22 234044
info@bakertilly.md
www.bakertilly.md
INDEPENDENT AUDITOR'S REPORT
To the Management of the "Implementing Participatory Social Accountability for Better Health Project"
Report on the Special Purpose Project Financial Statements
Opinion
[1] We have audited the special purpose project financial statements of "Implementing Participatory
Social Accountability for Better Health Project", (the "Project") which comprise the Summary of
funds received, Summary of expenditures, Summary of SOE's, Statement of designated accounts and
Statement of financial position for the period January 1t, 2019 to January 31, 2020, and a summary of
significant accounting policies and other explanatory information (the "special purpose project
financial statements").
[2] In our opinion, the accompanying special purpose project financial statements present fairly, in all
material respects, cash proceeds and disbursements and uses of funds by project components of
the Project for the period January l1, 2019 to January 31, 2020 in accordance with International
Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the
"IPSAS") issued by the International Public Sector Accounting Standards Board of the International
Federation of Accountants, and the World Bank's Financial Management Sector Board's "Guidelines:
Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB
Guidelines").
Basis for opinion
[3] We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Project in
accordance with the International Ethics Standards Board for Accountants' Code of Ethics for
Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our
audit of the special purpose project financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter
[4] Without qualifying our opinion, we draw attention to Note 2 to the special purpose project financial
statements which describe the basis of accounting. These special purpose project financial statements
were prepared for complying with the appropriate World Bank Guidelines and Grant agreement
requirements, and therefore are not intended to be a complete presentation of the "Implementing
Participatory Social Accountability for Better Health Project" (the "Project") operations.
4
Other matter
[5] The special purpose project financial statements are prepared to assist the Project to comply with the
requirements of the World Bank. As a result, the special purpose project financial statements may not
be suitable for another purpose.
Responsibilities of Management and Those Charged with Governance for the special purpose project
financial statements
[6] Management is responsible for the preparation and fair presentation of the special purpose project
financial statements in accordance with International Public Sector Accounting Standard "Financial
Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public
Accounting Standards Board of the International Federation of Accountants, and the World Bank's
Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for
World Bank Financed Activities" (the "WB Guidelines"), and for such internal control as management
determines is necessary to enable the preparation of the special purpose project financial statements
that are free from material misstatement, whether due to fraud or error.
Auditor's responsibilities for the audit of the special purpose project financial statements
[7] Our objectives are to obtain reasonable assurance about whether the special purpose project 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 ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the special purpose project financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the special purpose project financial
statements, 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 management.
* Conclude on the appropriateness of management's use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Project's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor's report to the related disclosures in the special purpose project 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 our 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 special purpose project financial
statements, including the disclosures, and whether the special purpose project financial
5
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
[8] We communicate with those charged with governance 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.
[9] We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
ICS Baker Tilly Klitou and Partners SRL
A~T\)k - Qj
Chisinau, Moldova
April 21, 2020
6
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
SUMMARY OF FUNDS RECEIVED
FOR THE PERIOD JANUARY 1sT, 2019 TO JANUARY 31, 2020
Note From January 11 From April 29,
2019 to January 2015 to Cumulative
31, 2020 December 31, to date
2018
Financing method / sources of financing:
Grant No. TF-018162
Payment to Designated account 1 259,500 470.500 730,000
Direct payments .
259,500 470,500 730,000
On behalf of the Management:
lCENTRUL %
Stela Bivol PL N p ahl
Dii TEeicatreto
April 21, 2020 April 21, 2020
Chisinau, Republic of Moldova Chisinau, Republic of Moldova
The notes on pages 12-19 form an integral part of the special purpose project financial statements.
The Independent Auditor's Report is on pages 4-6.
7
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
SUMMARY OF EXPENDITURES
FOR THE PERIOD JANUARY 1sT, 2019 TO JANUARY 31, 2020
From January 1st, From April 29, 2015
2019 to January 31, to December 31,
Note 2020 2018 Cumulative to date
Project expenses 3
COMPONENT 1: Promoting
citizen monitoring of hospital 96,317 141,877 238,194
performance
COMPONENT 2:
Strengthening performance
based incentive program in
family medicine through social 80,356 155,750
audits of primary healthcare
institution
COMPONENT 3: Fostering an
enabling environment for
informed public dialogue in 56,600 24,819 81,419
health
COMPONENT 4: Facilitating
knowledge on social
accountability exchange and
learning uptake to enhance 76,848 170,559 247,407
effectiveness of social
accountability intervention and
Project management
Total project expenses 305,159 417,611 722 ,770
On behalf of the Management:
Stela B3' ol -
DietrFhaidtDirector
April 21, 2020 April 21, 2020
Chisinau, Republic of Moldova Chisinau, Republic of Moldova
The notes on pages 12-19 form an integral part of the special purpose project financial statements.
The Independent Auditor's Report is on pages 4-6.
8
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
SUMMARY OF STATEMENTS OF EXPENDITURE (SOE'S)
FOR THE PERIOD JANUARY IsT, 2019 TO JANUARY 31, 2020
NR For the period Amount
SOE 4 01.01.2019 - 31.01.2020 305,159
305,159
On behalf of the Management
aCENTRUL
PENTRU / .
PO%tNLIII
Director / Fi 7 icial Difrector
April 21, 2020 April 21, 2020
Chisinau, Republic of Moldova Chisinau, Republic of Moldova
The notes on pages 12-19 form an integral part of the special purpose project financial statements.
The Independent Auditor's Report is on pages 4-6.
9
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
STATEMENT OF DESIGNATED ACCOUNTS
FOR THE PERIOD JANUARY 15T, 2019 TO JANUARY 31, 2020
Bank BC "Victoriabank" SA
Currency US Dollars MDL
Bank account MD08VI00022519 MD19VI22519000
0000104013 0104013MDL
Bank address 64, 31 August 1989 str., Chisinau, Moldova
Description Note Total
Balance as at January 1St, 2019 52,889 - 52,889
Withdrawal application 200,000 - 200,000
Withdrawal application 59,500 - 59,500
Movements between accounts
(USD and MDL) (305,143) 305,143 -
Total funds received 7,246 305,143 312,389
The amount of eligible expenditures
paid (16) (305,143) (305,159)
Foreign exchange rate differences - -
Balance as at January 31, 2020 4 7,230 7230
On behalf of the Management:
Ci ENVTRUr
PENTRU *
Stela Bivol ~ ~ ;7 L Serwiu cl rni
Directfor Ni Fmf i~or
April 21, 2020 April 21, 2020
Chisinau, Republic of Moldova * Chisinau, Republic of Moldova
The notes on pages 12-19 form an integral part of the special purpose project financial statements.
The Independent Auditor's Report is on pages 4-6.
10
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dolars)
STATEMENT OF FINANCIAL POSITION
AS AT JANUARY 31, 2020
Notes Cumulative to
ASSETS January 31, 2020date
Cash and cash equivalents 4 7,230 7,230
Cumulative project expenditures 6 722,770 722,770
Other expenditures . .
TOTAL ASSETS 730,000 730,000
FINANCING
Grant received 5 730,000 730,000
Other sources
TOTAL FINANCING 730,000 730,000
4 CENTRUL
On behalf of the Manageme ; PENTR U
POLITICI ;/
Stela BilVol Sr gitV Il erma
Director Finaueful Dire'or
April 21, 2020 April 21, 2020
Chisinau, Republic of Moldova Chisinau, Republic of Moldova
The notes on pages 12-19 form an integral part of the special purpose project financial statements.
The Independent Auditor's Report is on pages 4-6.
11
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS
FOR THE PERIOD JANUARY 1S, 2019 TO JANUARY 31, 2020
1. GENERAL INFORMATION
According to the Agreement between the CENTER FOR HEALTH POLICIES AND STUDIES (the
"PAS") and International BANK FOR RECONSTRUCTION AND DEVELOPMENT (the "Bank")
dated November 19, 2014, the Bank provided a Grant No.TF018162 in the amount of 730,000 US
Dollars to the Republic of Moldova.
Project Development Objective
The Grant is provided for execution of the project "Implementing Participatory Social Accountability
for Better Health".
Project Name: Implementing Participatory Social Accountability for
Better Health
Grant no.: TF-018162
FA signing Date: 19/11/2014
Closing Date: 31/01/2020
Grant Amount: USD 730,000
The objective of the Project is to inform users of health services in selected rayon about the
performance, quality, and efficiency of hospitals and primary care clinics within a certain radius of
their residence in order to improve service delivery.
The Project consists of the following objectives:
1) Objective 1. To promote Citizen Monitoring of Hospital Performance based on developed
participatory monitoring and evaluation tools;
2) Objective 2. To strengthen Performance - based Incentive Program in Family Medicine through
Social Audits of Primary Healthcare Institution;
3) Objective 3. To create an Enabling Environment for Informed Public Dialogue in Health;
4) Objective 4. To facilitate Knowledge on social accountability exchange and Learning uptake to
Enhance Effectiveness of Social Accountability Interventions
5) Project Management.
Objective 1. Promoting Citizen Monitoring of Hospital Performance based on developed
participatory monitoring and evaluation tools
(a)Elaborate HPRC (Hospital Performance Report Card), in consultation with the partners, based on
developed criteria for measuring performance, quality and efficiency within hospital institutions;
(b) Conduct consensus building roundtables to discuss and agree on proposed HPRC methodology
(c) Implement performance, quality and efficiency measurements based on number of defined
indicators of public hospitals;
(d) Conduct a round-table discussion on performance, quality and efficiency measurements results
(e) Dissemination the HPRC results as part of policy experiment exercise on citizen's engagement in 9
rayons;
(f) Conduct patient exit survey in 18 randomly selected rayons as part of policy experiment exercise
on citizen's engagement (9 interventions and 9 control);
(g) Conduct consensus building roundtables with Ministry of Health (MOH) and CNAM on policy
experiment results.
12
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
Objective 2. Strengthening Performance -based Incentive Program in Family Medicine through
Social Audits of Primary Healthcare Institutions
Provision of support to carry out:
(a) Development of PHCPIA (Primary Healthcare Performance based Incentives Audits) tool in
consultation with the partners, to assess the performance-based incentive program results
implemented by CNAM and MOH;
(b) Conduct consensus building roundtables to discuss and agree on proposed PHC-PIA methodology;
(c) Implement PHC-PIA tool in selected institutions based on agreed methodology (second exercise is
subject of policy changes);
(d) Disseminate PHC information in 9 "treatment" rayon as part of the policy experiment exercise on
citizen's engagement. Organize relevant policy dialogs and consensus building roundtables on PHC
performance to discuss the obtained results and design policy corrective measures if needed.
Objective 3. Creating an Enabling Environment for Informed Public Dialogue in Health
Provision of support to carry out:
(a) Conduct Public Opinion Polls (POP) on health services and reforms as part of Health System
Development Strategy evaluation based on preliminary developed and agreed methodology;
(b) Contribute to development of the next Health System Development Strategy Framework 2018-
2027 based on achieved results;
(c) Organize relevant policy dialogs on health reforms impact and sustainability and an annual
conference to discuss the obtained results and design policy corrective measures if needed.
Objective 4. Facilitating Knowledge and Learning to Enhance Effectiveness of Social
Accountability Interventions and
Provision of support to carry out:
(a) Build/develop sustainable information-communication tools (accessible and understandable) to
serve as a platform for disseminating and using health systems' data and project results;
Promote, advocate and monitor that project results, achieved on social accountability tools, are
effectively used by MOH, CNAM and other governmental institutions to complement formal M&E
and to inform about policy process.
Objective 5. Project Management
(a) Management, monitoring and evaluation of Project activities, including audit of the Grant.
Project Execution
1. The Recipient declares its commitment to the objectives of the Project. To this end, the Recipient
shall carry out the Project in accordance with the provisions of:
(a) Article II of the Standard Conditions;
(b) The "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by
IBRD Loans and IDA Credits and Grants" dated October 15,2006 and revised in January 2011
("Anti-Corruption Guidelines"); and
(c) The Recipient has sole fiduciary responsibility under the Project, including for procurement and
financial management.
2. The Recipient shall:
(a) Ensure at all times during the implementation of the Project, that it maintains competent staff in
adequate numbers and with terms and references satisfactory to the Bank, including a project
manager, a financial specialist, a monitoring and evaluation specialist and procurement
specialist; and
13
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
(b) Implement the Project activities in coordination with relevant stakeholder and organizations,
local and central government representatives, targeted communities.
Project Monitoring
(a) The Recipient shall monitor and evaluate the progress of the Project Reports in accordance with
the provision of Section 2.06 of the Standard Conditions and on the basis of indicators agreed
with the World Bank and contained in the Results Framework and Monitoring, which may be
amended from time to time with the World Bank's written no objection. Each Project Report
shall cover the period of one calendar semester, and shall be furnished to the World Bank not
later than one month after the end of the period covered by such report; and
(b) The Recipient shall prepare the Completion Report in accordance with the provisions of Section
2.06 of the Standard Condition. The Completion Report shall be furnished to the World Bank not
later than four months after the Closing Date.
Financial Management
(a) The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and
furnished to the World Bank not later than 45 days after the end of each calendar semester; and
(b)The Recipient shall have its Financial Statements audited.
PROCUREMENT
All goods, works, non-consulting services required for the Project and to be financed out of the
proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in
the "Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and
IDA Credits and Grants by World Bank Borrowers".
Consultants' Services required for the Project and to be financed out of the proceeds of the Loan shall
be procured in accordance with the requirements set forth or referred to in Section I and IV of the
Consultant Guidelines.
a. Particular Methods of Procurement of Goods, Works and Non-consulting services:
i. National Competitive Bidding (NCB)
ii. Shopping (SH)
iii. Direct Contracting (DC)
iv. International Competitive Bidding
b. Particular methods of procurement of consultants' services
The following methods, other than Quality and Cost-based Selection may be used for procurement of
consultants' services for those assignments, which are specified in the Procurement Plan:
i. Quality-and Cost-based Selection;
ii. Least Cost Selection;
iii. Selection under a Fixed Budget;
iv. Selection based on Consultants' Qualifications;
v. Single-source Selection of consulting firms;
vi. Selection of Individual Consultants; and
vii. Single-source procedures for the Selection of Individual Consultants.
The Procurement Plan shall set forth those contracts which shall be subject to the Bank's Prior
Review. All other contracts shall be subject to Post Review by the Bank.
14
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
in US Dollars)
2. PRESENTATION OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS
Basis of preparation
These special purpose project financial statements have been prepared in accordance with the
International Public Sector Accounting Standard (the "IPSAS") "Financial Reporting under the Cash
Basis of Accounting" issued by the Public Sector Committee of the International Federation of
Accountants, and incorporate the following principal accounting policies, which have been consistently
followed in all material respects and comply with the World Bank's Financial Management Sector
Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities"
(the "WB Guidelines").
Under the cash basis approach income (or expenditure) is recognized when cash is received (or paid)
irrespective of when goods or services are received or provided.
The Project's approved budget disclosed by categories of expenses is presented below:
Category Description Amount of the Grant Allocated (USD)
COMPONENT 1: Promoting citizen monitoring of hospital 236,750
performance
COMPONENT 2: Strengthening performance based incentive
program in family medicine through social audits of primary 155,810
healthcare institution
COMPONENT 3: Fostering an enabling environment for 90025
informed public dialogue in health 90,025
COMPONENT 4: Facilitating knowledge on social
accountability exchange and learning uptake to enhance
effectiveness of social accountability intervention and Project 247,415
m anagem ent __________________________________________________
Total: 730,000
These special purpose project financial statements consist of:
* Summary of funds received;
* Summary of expenditures;
* Summary of SOE's;
* Statement of designated accounts;
* Statement of financial position;
* Significant accounting policies and other explanatory notes.
The reporting currency of these special purpose project financial statements is US Dollars
(the "USD").
15
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash basis of accounting
The special purpose project financial statements are prepared on a cash basis of accounting. The cash
basis of accounting recognizes transactions and events only when cash (including cash equivalents) is
received or paid by the Project. The special purpose project financial statements prepared under the
cash basis provide readers with information about the sources of cash raised during the period, the
purposes for which cash was used and the cash balances at the reporting date. The measurement focus
in the special purpose project financial statements is balances of cash and changes therein.
Foreign currency
Project accounts are maintained and transactions are made in USD and Moldavian Leu (MDL).
Transactions denominated in other currencies are translated into USD as follows:
- Payments in MDL from designated accounts at the commercial bank BC Victoriabank SA are
translated into USD at the conversion rate determined by the commercial bank on the date of
transaction.
- Direct payments in currencies other than USD are translated into the reporting currency at the
conversion rate determined by the World Bank on the date of transaction.
- As at reporting date, cash balances denominated in MDL are translated into USD at the exchange
rate established by BNM at that date.
The exchange rate established by BNM as at 31 January 2020 is USD 1 = 17.5092 MDL.
The average exchange rate established by BNM for the period January 1, 2019 to January 31, 2020 is
USD 1 = 17.5628 MDL.
Cash and cash equivalents
Cash and cash equivalents include cash on hand and due from banks, which can be converted to the
corresponding amount of cash in the short term.
Taxes
Calculation and payment of personal income tax and social security contributions from income of
local staff and consultants is made in accordance with the requirements and rates of the Tax Code of
the Republic of Moldova.
Project expenses
The expenses are recorded in the period when they were actually paid.
Sources of funds
The funds were provided by the World Bank to the Project by replenishment of special account or
through direct payment to the end supplier of goods and/or services.
16
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
4. CASH AND CASH EQUIVALENTS
Cash and cash equivalents as at January 31, 2020 comprise:
Account held at Underlying January 31, 2020
Currency USD
Designated Account BC VictoriaBank SA USD 7,230
Designated Account BC VictoriaBank SA MDL -
7,230
5. APPLICATIONS TO DESIGNATED ACCOUNT
NOTE 1
Sources of financing Application Date From April 29, 2015 to
January 31, 2020
Grant No. TF-018162 0004 13-Nov-19 59,500
Grant No. TF-018162 0003 23-Jan-19 200,000
GrantNo. TF-018162 0002 11-Jun-18 215,000
Grant No. TF-018162 0001 29-Apr-15 255,500
730,000
6. CUMULATIVE PROJECT EXPENDITURES
From January 1st, From April 29, 2015
Type of the expense 2019 to December to December 31, Cumulative to date
31,2020 2018
USD USD USD
Component 1. 96,317 141,877 - 238,194
Consulting Services 83,241 132,410 215,651
Goods 70 70
Training 10,853 7,941 18,794
Operating Costs 171 171
Others 2,223 1,285 3,508
Component 2. 75,394 80,356 - 155,750
Consulting Services 67,215 72,965 140,180
Training 4,478 5,737 10,215
Operating Costs - 76 76
Others 3,700 1,579 5,279
Component 3. 56,600 24,819 - 81,419
Consulting Services 47,580 19,900 67,480
Training 5,890 4,919 10,809
Goods 2,784 - 2,784
Operating Costs -
Others 346 - 346
Component 4. 76,848 170,559 - 247,407
Consulting Services 23,269 48,295 71,564
Goods 35,884 35,884
Operating Costs 46,874 81,219 128,093
Others 6,705 5,161 11,866
305,159 417,611 722,770
17
"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
7. CASH PROCEEDS AND DISBURSEMENTS
Notes From From April 29, Cumulative
January 1, 2015 to
2019 to December 31,
January 31, 2018
2020
Opening balance 52,889 -
Funding sources
Grant No. TF-018162 259,500 470,500 730,000
Other sources (bids
selling) - .
Total financing 259,500 470,500 730,000
Project expenses
COMPONENT 1:
Promoting citizen
monitoring of hospital 96,317 141,877 238,194
performance
COMPONENT 2: Strengthening
performance based incentive program
in family medicine through social 75,394 80,356 155,750
audits of primary healthcare institution
COMPONENT 3:
Fostering an enabling
environment for
informed public 56,600 24,819 81,419
dialogue in health
COMPONENT 4: Facilitating
knowledge on social accountability
exchange and learning uptake to 76,848 170,559 247,407
enhance effectiveness of social
accountability intervention and Project
management
Total project expenses 305,159 417,611 722,770
Foreign currency
gain/(loss) . -
Closing balance 7,230- 52,889 7.230
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"IMPLEMENTING PARTICIPATORY SOCIAL ACCOUNTABILITY FOR BETTER HEALTH"
GRANT NO.: TF018162
(in US Dollars)
8. COMMITMENTS
In the normal course of activities, the Project concludes agreements with suppliers of goods, works
and services in accordance with the established budget and Project Procurement Plan.
As at January 31, 2020 the Project had the following commitments:
Cost per Date of Total Amount Contract
Counterparty CCY Contract Contract Paid amount
Signing due
Age Quod Agis LTD USD 31,955 30-Nov-16 28,090
Bons Office SRL MDL 20,540 28-Feb-19 20,540
Bons Office SRL MDL 3,440 20-Mar-19 3,440
Bons Office SRL MDL 24,200 22-Jan-20 24,200
CBS-Research SRL MDL 971,706 26-Jan-18 485,853
Hincu Oleg II USD 15,000 21-Oct-19 15,000
Magenta Consulting SRL MDL 1,924,797 26-Dec-17 642,882
Maximize SRL MDL 270,055 26-Apr-19 270,055
Opinia SRL MDL 654,300 10-Jan-18 327,150
9. LEGAL CASES
There were no legal cases related to the Project.
10. EVENTS AFTER THE REPORTING DATE
As at the date of issue of the special purpose project financial statements no significant events or
transactions occurred which should be disclosed in the special purpose project financial statements as
Project has finished as at January 31, 2020. As at the date of issue of this report, the outstanding
balance from the Designated Account in the amount of US 5265.82 is earmarked for the payment of
the audit fee. Any remaining balances shall be refunded to the World Bank.
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