таггтп гп ггл ггтатггп гггггггггп гггг Central Asia - South Asia Electricity Transmission and Trade Project (CASA-1000) Multi-Donor Trust Fund IBRD and IDA Grant No. Part A TF0A4614-KG and Part В TF0B2766-KG Financial statements F or the period fro m 1 Januaty 2020 to 31 D ecember 2020, together with independent auditor’s report EY Building a better working world Central Asia —South Asia Electricity Transmission and Trade Project (CASA-1000) Multi-Donor Trust Fund, Grants Part A TF0A4614-KG and Part В TF0B2766-KG Financial statements CONTENTS INDEPENDENT AUDITOR’S REPORT FINANCIAL STATEMENTS Statement o f funds received and expenditures paid...............................................................................................................................................1 Statement of expenditures by project com ponents................................................................................................................................................3 NOTES TO THE FINANCIAL STATEMENTS 1. General inform ation........................................................................................................................................................................................... 4 2. Basis of preparation of financial statements...............................................................................................................................................5 3. Summary of significant accounting p o licies...............................................................................................................................................5 4. Withdrawal applications reports.....................................................................................................................................................................6 5. Statement of Designated Accounts............................................................................................................................................................... 7 6. Statement of financial position....................................................................................................................................................................... 7 7. Cash and cash equivalents................................................................................................................................................................................ 7 8. Fund received........................................................................................................................................................................................................ 8 9. Expenditures p a id ............................................................................................................................................................................................... 9 10. Undisbursed Grant Funds................................................................................................................................................................................ 9 11. Litigation................................................................................................................................................................................................................. 9 EY Building a better «Эрнст энд Янг Аудит» Ж ЧК Абдрахманов к., 191 ООО «Эрнст энд Янг Аудит) ул. Абдрахманова, 191 Ernst & Young Audit LLC Abdrakhmanov Str., 191 working world Бишкек ш., 720011 г, Бишкек, 720011 Bishkek, 720011 Кыргыз Республикасы Кыргызская Республика Kyrgyz Republic Independent auditor's report To th e Management of the OJSC "N ational Electric Grid of Kyrgyzstan" Opinion We have audited the financial statements of "Central Asia - South Asia Electricity Transmission and Trade Project" CASA-1000, Multi-Donor Trust Fund, Grants Part A No. TF0A 4614-KG and Part B. No. TF0B 2766-KG (hereinafter, the "P roject"), which comprise the statement of funds received and expenditures paid and statement of expenditures by project components for the period from 1 January 2 0 2 0 to 31 December 2 0 2 0 , and notes to the financial statements, including short description of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the cash receipts and payments on the Project and its statem ent of funds by project components for the period from 1 January 2 0 2 0 to 31 December 2 0 2 0 prepared in accordance with the International Public Sector Accounting Standard (hereinafter, the "IPSAS") Financial Reporting u nder the Cash Basis o f A ccounting issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants and the relevant requirements of the Grant Agreement with Multi-Donor Trust Fund Grants Part A No. TFOA 4614-KG and Part B. No. TFOB 2766-KG between the OJSC National Electric Grid of Kyrgyzstan and the International Development Association and International Bank fo r Reconstruction and Development. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are fu rth e r described in the A uditor's responsibilities fo r the a u d it o f the financial statem ents section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants' (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our o ther ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. A member firm of Ernst & Young Global Limited EY Building a better working world Responsibilities of m anagem ent for the financial statem en ts Management is responsible for the preparation and fair presentation of the financial statements in accordance with IPSAS, and for such internal control as managem ent determines is necessary to enable the preparation of financial statements th a t are free fro m material misstatement, w hether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Project's ability to continue as a going concern, disclosing, as applicable, m atters related to going concern and using the going concern basis of accounting unless managem ent either intends to liguidate the Project or to cease operations, or has no realistic alternative but to do so. A uditor's responsibilities for the audit of the financial statem ents Our objectives are to obtain reasonable assurance about w h ether the financial statements as a whole are free from material misstatement, w hether 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 these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgm ent and maintain professional skepticism througho ut the audit. We also: ► Identify and assess the risks of material m isstatem ent of the financial statements, w hether 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 fo r our opinion. The risk of not detecting a material m isstatem ent resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, m isrepresentations, or the override of internal control. ► Obtain an understanding of internal control relevant to the audit in order to design audit procedures th a t are appropriate in the circumstances, but not fo r 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, w h ether 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 th a t a material uncertainty exists, we are reguired to draw attention in our auditor's report to the related disclosures in the financial statem ents or, if such disclosures are inadequate, to m odify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, futu re 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 w hether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. A member firm of Ernst & Young Global Limited лш ггтгггтгтгпгггггггг EY Building a better working world We communicate with the person, which are responsible for the corporate management regarding, among other matters, the planned scope and tim ing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Paul С A u d i r a f / General Director Ernst & Young LLC Qualification certificate of the auditor: Series A, License to perform audit activities series A No.0 3 6 6 , registration number No.0 4 4 6 of № 0 0 3 6 registration No. 0 0 6 5 dated February 22, 2 0 1 8 2 0 February 2 0 1 0 issued by The State Service fo r Financial Market Regulation and Supervision under the Governm ent of Kyrgyz Republic Abdrakhm anov Str., 191 Bishkek 7 2 0 0 1 1 , Kyrgyz Republic 18 June 20 2 1 A member firm of Ernst & Young Global Limited Central Asia - South Asia Electricity Transmission and Trade Project ((ASA 1000) Multi-Donor Trust Fund, Grant IBRD and IDA Part A No. IT'OA 4614-KG and Part В TP'OB 2766-KG F in a n c ia l s t a t e m e n t s STATEMENTS OF FUND RECEIVED AND EXPENDITURES PAID For the period from 1 January 2020 to 31 December 2020 In USD Actual Budget Variance For the For the For the For the For the For the period from period from period from period from period from period from 1 January 1 January 1January 1 January 1January 1 January 2020 to 2019 to 2020 to 2019 to 2020 to 2019 to 31 December 31 December 31 December 31 December 31 December 31 December Description Note 2020 2019 Cumulative 2020 2019 Cumulative 2020 2019 Cumulative Cash balance as of 1 January 2020 Designated account (IBRD and IDA, Grant Part A No. TF0A4614-KG) 96,245 Designated account (IBRD and IDA, Grant Part В No. TF0B2766-KG) _ _ _ _ Total cash balance 1 96,245 - - - - - - - - Fund received Designed account (IBRD and IDA, Grant Part A No. TF0A4614-KG) 169,358 142,262 508,682 Direct payment 280,181 203,818 662,130 - - - - _ - Designated account (IBRD and IDA, Grant Part В No. TF0B2766-KG) _ _ Direct payment - - - - - - - - - Total fund received 8 449,539 347,080 1,170,812 - - - - - - Expenditures paid Grant Part A No. TF0A4614-KG 478,062 284,641 1,103,090 478,660 284,869 1,122,067 (598) (228) (18,977) Consultants’ services 212,981 137,738 537,330 212,981 137,738 549,027 - (11,697) Consultant engineering services 130,686 - 130,686 130,686 - 130,686 - - - Audit services 67,200 66,080 201,600 67,200 66,080 201,280 - - 320 Incremental operating costs 67,195 80,823 232,224 67,793 81,051 239,774 (598) (228) (7,550) Trainings 1,250 1,300 - (50) Grant Part В No. TF0B2766-KG _ _ _ : Total expenditures paid 9 478,062 284,641 1,103,090 478,660 284,869 1,122,067 (598) (228) (18,977) The accompanying notes on pages 4-9 form an integralpart o f thesefinancial statements. 1 Central Asia - South Asia Electricity Transmission and Trade Project (( ASA 1000) Multi-Donor Trust Fund, Grant IBRD and IDA Part A No. TFOA 4614 КС! and Part В TI'OB 2766 KG Financial statements STATEMENTS OF FUND RECEIVED AND EXPENDITURES PAID (continued) Actual Budget _____________________________ Variance For the For the For the For the For the For the period from period from period from period from period from period from 1 January 1 January 1 January 1 January 1 January 1 January 2020 to 2019 to 2020 to 2019 to 2020 to 2019 to 31 December 31 December 31 December 31 December 31 December 31 December Description Note 2020 2019 Cumulative 2020 2019 Cumulative 2020 2019 Cumulative Cash balance as of 31 December 2020 Designated account (IBRD and IDA, Grant Part A No. TF0A4614-KG) 67,722 96,245 Designated account (IBRD and IDA, Grant Part В No. TF0B2766-KG)____________________ — ____________ Total cash balance__________________ 7__________ 67,722________ 96,245 Signed and authorized for issue on 18 June 2021. Diusheeva G. Financial Management Specialist, Central Asia - South Asia Electricity Transmission and Trade Project The accompanying notes on pages 4-9 form an integralpart o f thesefinancial statements. 2 Central Asia —South Asia Electricity Transmission and Trade Project (<' ASA 1000) M ulti-D onor Trust Fund, Grant IBRD and IDA Part A No. TFOA 4614 КС! and Part В ТИШ 2766 1ч(5 Financial statements STATEMENT OF EXPENDITURES BY PROJECT COMPONENTS For the period from 1 January 2020 to 31 December 2020 In USD Actual Budget Variance For the For the For the For the For the For the period from period from period from period from period from period from 1 January 1 January 1 January 1 January 1 January 1 January' 2020 to 2019 to 2020 to 2019 to 2020 to 2019 to 31 December 31 December 31 December 31 December 31 December 31 December Project components Note 2020 2019 Cumulative 2020 2019 Cumulative 2020 2019 Cumulative Part B. Technical Assistance and Project Implementation Support 1. High Voltage DC and High Voltage AC Transmission Engineers 130,686 130,686 130,686 130,686 2. Environment and Social Management Support 212,981 137,738 537,330 212,981 137,738 549,027 (11,697) 3. Audits and Financial and Revenue Management 67,200 66,080 201,600 67,200 66,080 201,280 _ 320 4. Project Management Support 67,195 80,823 233,474 67,793 81,051 241,074 (598) (228) (7,600) 5. Coordination - - - - - - - - - 6. Project Communication - - - - - - - — _ 7. Capacity building - - - - - - - - - Total expenditures 9 478,062 284,641 1,103,090 478,660 284,869 1,122,067 (598) (228) (18,977) Signed and authorized for issue on 18 June 2021. The accompanying notes on pages 4-9 form an integralpart o f thesefinancial statements. 3 Central Asia —South Asia Electricity Transmission and Trade Project (CASA-1000) Notes to the financial statements Multi-Donor Trust Fund, Grant IBRD and IDA for the period from 1 January 2020 Part A No. TFOA 4614-KG and Part В TFOB 2766-KG to 31 December 2020 In USD 1. General information Grant No. TF0A4614 — KG o f the Central Asia — South Asia Electricity Transmission and Trade Project CASA-1000 (hereinafter —the “Project”) is implemented on the basis of die signed Agreement on the provision of grant No. TF0A4614-KG o f 2 August 2017 between the National Electric Grid o f Kyrgyzstan OJSC (hereinafter - the “Company”) and the International Bank for Reconstruction and Development, the International Development Association (hereinafter collectively referred to as the “World Bank”) acting as the administrator o f the CASA-1000 Multi-Donor Trust Fund. According to this Agreement, the total amount of grant funding will not exceed 1,000,000 (one million) US dollars. The grant is provided for technical assistance and support for the financing of preparation for the implementation of the Project. On 24 July 2019, the total amount o f financing was increased to 3,000,000 (three million) US dollars by Amendment No. 1 for financing the Part В activities o f the Project. On 22 June 2020, by Amendment No. 2 to the above Grant Agreement, World Bank notified the Company of the extending the Closing Date o f the Grant until 31 March 2022 and allocation o f additional Multi-Donor Trust Fund's reserved funds in the form of Part В of Grant No. TF0A2766-KG in the amount o f 1,566,820 (one million five hundred six thousand twenty) US dollars. In this regard, the Grant Number was amended accordingly as No. TF0A4614-KG for Portion A in the amount o f 3,000,000 US dollars and No. TF0B2766-KG for Portion В in the amount of 1,566,820 US dollars. Thus, the total amount o f financing amounted to 4,566,820 (four million five hundred sixty-six thousand eight hundred twenty) US dollars. Project Management Project management is carried out by the General Agreement of the Intergovernmental Council, the Agreement on the purchase o f electricity, Credit agreements with donor organizations, Debt obligations with the Ministry o f Finance of the Kyrgyz Republic, the Project Secretariat, and in accordance with Decrees and Orders o f the Government o f the Kyrgyz Republic. Im plementation o f the Project is carried out by the Project Implementation Unit o f the N ational Electric Grid of Kyrgyzstan OJSC. Address o f the Company: Kyrgyz Republic, Bishkek, 326 Jibek Jo lu Avenue, 720040. Project Objective The objective of the Project is export electric energy from Kyrgyz Republic and Republic o f Tajikistan to Islamic Republic of Afghanistan and Islamic Republic of Pakistan. The Project consists o f 3 components: 1. Component A “Construction o f Fligh Voltage Transmission Infrastructure”; 2. Component В “Technical Assistance and Project Implementation Support”; 3. Component С “Community Support Program”. The project implements the implementation of Component В “Technical Assistance and Project Implementation Support”, which consists of the following parts: 1. High Voltage DC and High Voltage AC Transmission Engineers; 2. Environment and Social Management Support; 3. Audits and Financial and Revenue Management; 4. Project Management Support; 5. Coordination; 6. Project Communication; 7. Capacity building. The Grant Agreement sets the duration o f the Grant from 2 August 2017 to 31 March 2022 due to the increase in the amount o f financing under the Grant for the implementation of the Project. The financial statements were approved for release by Project management on 18 June 2021. 4 Central Asia —South Asia Electricity Transmission and Trade Project (CASA-1000) Notes to the financial statements Multi-Donor Trust Fund, Grant IBRD and IDA for the period from 1 January 2020 Part A No. TFOA 4614-KG and Part В TFOB 2766-KG to 31 December 2020 In USD 2. Basis of preparation of financial statements The financial statements are prepared in accordance with the International Public Sector Accounting Standard (hereafter — “IPSAS”) Financial Reporting under Cash Basis o f Accounting issued by the Public Sector Committee of the International Federation o f Accountants and corresponding points of the Grant Agreement Part A No. TFOA4614-KG and Part В No. TF0B2766-KG. The format o f the financial statements complies with the one used for the projects financed by the World Bank, that discloses the sources and uses of funds in the framework of the Project. The financial statements consist o f the following: • Statement of funds received and expenditures paid; • Statement of expenditures by project components; • Notes to the financial statements, including short description of the main statements of accounting policies and other descriptive notes. Currency The reporting currency of the financial statements is US dollars (USD). Comparative information Comparative information is provided for the previous period for all numerical information in the financial statements and in the notes to the financial statements. 3. Summary of significant accounting policies Cash basis of accounting The financial statements are prepared on the cash basis o f accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The financial statements, which are prepared on the cash basis o f accounting, provide users with information about the sources o f cash received during the period, about which funds were used and about the balance of funds at the reporting date. Foreign currency Cash receipts and payments in foreign currency are converted at USD spot rate of exchange as at the date of cash receipts and payments. The cash balance in foreign currency is reported using the exchange rate at the reporting date. In preparing the financial statements, the following foreign exchange rates established by the NBKR, in relation to the Kyrgyz som, at the reporting date were used: 31 December 2020 82.6498 31 December 2019 69.6439 Cash and cash equivalents Cash and cash equivalents include cash in foreign currency in a special bank account. Taxes Calculation and payment o f income tax and contributions to Social Fund from income o f local staff and consultants are made in accordance with the requirements o f the Tax Code o f the Kyrgyz Republic and the Law o f the Kyrgyz Republic on Tariffs o f Insurance Contributions for State Social Insurance. Grant financing Grant financing is recognized of actual cash receipts within the reporting period, in which they are actually received. 5 Central Asia - South Asia Electricity Transmission and Trade Project (CASA-1000) Notes to the financial statements Multi-Donor Trust Fund, Grant IBRD and IDA for the period from 1 January 2020 Part A No. TFOA 4614-KG and Part В TFOB 2766-KG to 31 December 2020 In USD 3. Summary of significant accounting policies (continued) Grant expenditures Grant expenditures include goods, non-consulting services, consulting services, training and incremental operating costs under Part В of the Project. Expenditures are recognized in the period, in which they are actually paid. Budget of Grant The grant budget is formed on the basis o f Procurement Plan approved by the W orld Bank. Grant financing and uses o f funds is carried out according to the Grant Agreement with the International Bank for Reconstruction and Development (hereinafter —the “IBRD”), and the International Development Association hereinafter —the “IDA”). The procurement plan is monitored in real time through (World Bank’s secure website “Client Connection” and the electronic procurement planning and monitoring system “STEP”. 4. Withdrawal applications reports Below is a report on withdrawal applications for the period from 1 January to 31 December 2020 and for the period from 1 January to 31 December 2019: Report on applications for the period from 1 January to 31 December 2020: Designed D irect Account Source Withdrawal No. paym ent (IBRD and IDA) Amount Grant No. TFOA 4614-KG No. 13 54,476 54,476 Grant No. TFOA 4614-KG No. 14 22,955 - 22,955 Grant No. TFOA 4614-KG No. 15 34,435 - 34,435 Grant No. TFOA 4614-KG No. 16 - 74,040 74,040 Grant No. TFOA 4614-KG No. 17 67,200 — 67,200 Grant No. TFOA 4614-KG No. 18 34,435 - 34,435 Grant No. TFOA 4614-KG No. 19 - 95,318 95,318 Grant No. TFOA 4614-KG No. 20 66,680 - 66,680 Total 280,181 169,358 449,539 Report on applications for the period from 1 January to 31 December 2019: Designed D irect Account Source Withdrawal No. payment (IBRD and IDA) Am ount Grant No. TFOA 4614-KG No. 6 77,727 77,727 Grant No. TFOA 4614-KG No. 7 34,434 — 34,434 Grant No. TFOA 4614-KG No. 8 66,080 _ 66,080 Grant No. TFOA 4614-KG No. 9 45,913 - 45,913 Grant No. TFOA 4614-KG No. 10 57,391 _ 57,391 Grant No. TFOA 4614-KG No. 11 - 65,535 65,535 Total 203,818 143,262 347,080 6 Central Asia —South Asia Electricity Transmission and Trade Project (CASA-1000) Notes to the financial statements Multi-Donor Trust Fund, Grant IBRD and IDA for the period from 1 January 2020 Part A No. TFOA 4614-KG and Part В TFOB 2766-KG to 31 December 2020 In USD 5. Statement of Designated Accounts Below the movements o f the IBRD and IDA Designated Account for the year ended 31 December 2020: Grant Part A Designed account No. TF0A4614-KG Bank account number 1091820100040808 Bank Optima Bank OJSC Bishkek Central branch Bank address 104/1 Kiev S t, Kyrgyz Republic, 720040 Balance as o f 1 January 2019 33,806 Advance/replenishment during the reporting period (IBRD and IDA) 143,262 Amount disbursed (excluding direct payments) during the reporting period (80,823) Balance as o f 31 December 2019 96,245 Advance/replenishment during the reporting period (IBRD and IDA) 169,358 Amount disbursed (excluding direct payments) during the reporting period (197,881) Balance as o f 31 December 2020 67,722 During 2020, there were no receipts and uses o f Grant No. No. TF0B2766-KG, therefore the balances as o f 1 ]anuaiy 2020 and 31 December 2020 were null. 6. Statement of financial position Below is a report on the financial position as of 31 December 2020 and 31 December 2019: 31 December 31 December 2020 2019 Assets Cash and cash equivalents 67,722 96,245 Accumulated expenditures 1,103,090 625,028 Total assets and expenditures 1,170,812 721,273 Financing Grant IBRD and IDA Part A TFOA 4614-KG 1,170,812 721,273 Total financing 1,170,812 721,273 7. Cash and cash equivalents As of 31 December 2020 and 31 December 2019, the article takes into account the balance o f unused funds in a Designated account: 31 December 31 December Name 2020 2019 Designated account in US dollars 67,668 96,085 Designated transit account in national currency 28 134 Desiganted transit account in Euro 26 26 Total 67,722 96,245 7 Central Asia - South Asia Electricity Transmission and Trade Project (CASA-1000) Notes to the financial statements M ulti-Donor Trust Fund, Grant IBRD and IDA for the period from 1 January72020 Part A No. TFOA 4614-KG and Part В TFOB 2766-KG to 31 December 2020 In USD 8. Fund received For the reporting period, the total amount of financing received under the Grant Part A. No. TF0A4614-KG amounted to 449,539 US dollars, including direct payments in the amount o f 280,181 US dollars. During the period from 1 January 2020 to 31 December 2020, there were no receipts and uses o f Grant Part B. No. TF0B2766-KG. The following is the financing received by payment methods: Am ount for the period from 1 January to 31 December Payment methods Date o f paym ent 2020 D irect payment 22 January 2020 54,476 D irect payment 30 March 2020 22,955 Direct payment 12 May 2020 34,435 Account replenishment 15 July 2020 74,040 Direct payment 27 July 2020 67,200 Direct payment 30 July 2020 34,435 Account replenishment 14 September 2020 95,318 Direct payment 2 December 2020 66,680 Total fund received 449,539 Am ount for the period from 1 Januaryr to 31 December Payment methods Date o f paym ent 2019 Account replenishment 15 March 2019 77,727 Direct payment 11 June 2019 34,434 Direct payment 18 July 2019 66,080 Direct payment 10 October 2019 45,913 Direct payment 7 November 2019 57,391 Account replenishment 16 December 2019 65,535 Total fund received 347,080 Directpayments representpayments made by the World Bank directly to the supplier. Central Asia —South Asia Electricity Transmission and Trade Project (CASA-1000) Notes to the financial statements Multi-Donor Trust Fund, Grant IBRD and IDA for the period from 1 January 2020 Part A No. TFOA 4614-KG and Part В TFOB 2766-KG to 31 December 2020 In USD 9. Expenditures paid The article presents eligible expenditures paid from Grant funds in accordance with the approved Procurement Plan. The expenses incurred by the Project are presented in the statement of funds received and expenditures paid. The expenditures by components are presented in the statement o f expenditures by the project components. The uses o f grant funds are carried out in accordance with the approved Procurement Plan. The following are the expenses incurred for the Project by expenditure category: Amount for Amount for the period from the period from 1 January 1 January to 2019 to 31 December 31 December Expenditures category 2020 2019 Consulting services Consultant’s services 212,981 137,738 Consultant engineering services 130,686 - Audit services 67,200 66,080 Total 410,867 203,818 Incremental operating costs and trainings Salaries o f local consultants 43,951 35,699 Travel expenses 21,139 19,341 Bank commission 188 240 Acquisition of furniture and office equipment* - 20,981 Other operating project expenses 1,917 4,562 Subtotal 67,195 80,823 Total 478,062 284,641 Furniture and office equipment are recognised by the Company as inventories and fixed assets to their accounting policies. As at 31 December 2020, the carrying value o f fix ed assets is 10,984 US dollars (31 December2019:15,506 US dollars), when initial cost is 19,398 US dollars and the accumulated depreciation is 3,892 US dollars, the cost o f inventories was 1,583 US dollars. The acquisition included VAT in amount o f2,922 US dollars. 10. Undisbursed Grant Funds As o f 31 December 2020, the funds of Grant Part A. No. TF0A4614-KG, also Part B. No. TF0B2766-KG, were disbursed by 25% from 4,566,820 US dollars, (as of 31 December 2019 — 25% from 3,000,000 US dollars), undisbursed funds in monetary terms amounted to 3,396,008 US dollars (as of 31 December 2019 - 2,278,727 US dollars). 11. Litigation According to management’s opinion o f Project, there are no current legal proceedings or other outstanding claims, which could have a material negative effect on results of operations or financial position of the Project, and which have not been disclosed in the financial statements. 9 EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, ta x, tra n s a c tio n and a d viso ry services. The insigh ts and g u a lity services we d e live r help build tru s t and confidence in th e capital m a rkets and in econom ies th e w o rld over. We develop o u tsta n d in g leaders w ho te a m to de live r on o u r prom ises to all o f o u r stakeholders. In so doing, we play a c ritic a l role in building a b e tte r w orkin g w orld fo r o u r people, fo r o u r clients and fo r o u r c om m unitie s. 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