I I CAPACITY BUILDING FOR PUBLIC SECTOR INTERNAL AUDIT PROJECT I I IDF GRANT NO. TF012781 I I Project Implemented by MINISTRY OF FINANCE OF THE KYRGYZ REPUBLIC I and in part of fiduciary issues, by the I PROJECT IMPLEMENTATION UNIT UNDER MINISTRY OF FINANCE OF THE KYRGYZ REPUBLIC ("PIU") I SPECIAL PURPOSE FINANCIAL STATEMENTS AND I INDEPENDENT AUDITOR'S REPORT I For the period from 28 March 2014 to 5 June 2017 I ·1 I I I I I BISHKEK June 2017 I I I CAPACITY BUILDING FOR PUBLIC SECTOR INTERNAL AUDIT PROJECT I IDF GRANT NO. TF012781 I TABLE OF CONTENTS I STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION Page I AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS INDEPENDENT AUDITOR'S REPORT 3 4-5 I SPECIAL PURPOSE FINANCIAL STATEMENTS For the period from 28 March 2014 to 5 June 20 I 7: I Statement of cash receipts and payments 6 Statement of expenditures per components 7 I Notes to the special purpose financial statements 8-12 I ANNEX I. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE PIU AND DISBURSED BY THE WORLD BANK 13 I I j I I I I I I I I STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR I THE PERIOD FROM 28 MARCH 2014 TO 5 JUNE 2017 The Project Implementation Unit under Ministry of Finance of the Kyrgyz Republic ("PIU") I is responsible for the preparation of the special purpose financial statements of "Capacity Building for Public Sector Internal Audit Project" ("Project") financed by Letter Agreement IDF Grant No. TF012781, that present fairly the Project's cash receipts and payments, I expenditures per components for the period from 28 March 2014 to 5 June 2017, in compliance with the International Public Sector Accounting Standard "Financial Reporting under the Cash Basis qf Accounting" (IPSAS-Cash Basis) issued by the International Public I Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) and the Financial Management Manual for World Bank Financed Investment Operations ('"WB Guidelines"). I In preparing the special purpose financial statements, PIU is responsible for: I • • Properly selecting and applying accounting policies; Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; I • Providing additional required disclosures for the period from 28 March 2014 to 5 June 2017. I PIU's Management is also responsible for: • Designing, implementing and maintaining an effective and sound system of internal I • controls, throughout the Project; Maintaining adequate accounting records that are sufficient to show and explain the Project's transactions, and which enable them to ensure that the special purpose financial I • statements of the Project comply with IP SAS- Cash Basis and the WB Guidelines; Taking such steps that are reasonably available to them to safeguard the assets of the Project and to affirm that funds received have been used in accordance with the Letter I Agreement IDF Grant No. TF012781 dated 30 December 2013, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; and I • Preventing and detecting fraud and other errors. I The special purpose financial statements for the period from 28 March 2014 to 5 June 2017 were authorized for issue on 13 June 2017 by the PIU. I I Musakozhoeva Bermet Davlesova Mehriban Director of PIU Financial Manager of PIU I I I I I "U OU-Ufil'-'1.flS" U