Sector Support for Education Reform Project" Credit No. 5230-KG, Grant No. H836-KG Project financial statements for the year ended Decem ber 31, 2018 and independent auditors' report bakertilly "SECTOR SUPPORT FOR EDUCATION REFORM PROJECT" CREDIT NO. 5230-KG, GRANT NO. H836-KG TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS 2 FOR THE YEAR ENDED DECEMBER 31, 2018 INDEPENDENT AUDITORS' REPORT 3-5 PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018: Statement of funds received and expenditures paid 6 Statement of expenditures by project components 7 Notes to the project financial statements 8-16 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 The following statement, which should be read in conjunction with the independent auditors' responsibilities is made with a view to distinguish the respective responsibilities of management and those of the independent auditors in relation to the project financial statements of the Project "Sector Support for Education Reform Project", Credit No. 5230-KG, Grant No. H836-KG (the "Project"). Management is responsible for the preparation of the project financial statements that present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the year ended December 31, 2018 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 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 project financial statements; and * preparing the project financial statements on a going concern basis, unless it is inappropriate to presume that the Project will continue its activity up to the date of completion of the Project, which is June 28, 2019. Management is also responsible for: * designing, implementing and maintaining effective and sound system of internal control in the Project; * maintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Project, and which e'nable them to ensure that the project financial statements of the Project comply with IPSAS and WB Guidelines; * compliance with laws and regulations of the Kyrgyz Republic, 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 project financial statements for the year ended December 31, 2018 were approved and authorized for issue on June 14, 2019 by the management of the Project. [On b,31> nagemenh: i 7. Q7 NLJZa Alpken itRysbekovu Nurzat '9k46to r Financial Manager June 14, 2019 June 14, 2019 Bishkek, the Kyrgyz Republic Bishkek, the Kyrgyz Republic bakertilLy conLaa c,@bakertilly kg w,ww oa,ertilly ca cor- INDEPENDENT AUDITORS' REPORT To the Management of the Project "Sector Support for Education Reform Project" under the Ministry of Education and Science of the Kyrgyz Republic: Opinion We have audited the accompanying project financial statements of the Project "Sector Support for Education Reform Project" (the "Project"), which comprise the summary of funds received and expenditures paid and summary of expenditures paid by project components for the year ended December 31, 2018, and a summary of significant accounting policies and other explanatory information (the "project financial statements"). In our opinion, the accompanying project financial statements present fairly, in all material respects, funds received and expenditures paid and expenditures paid by project components of the Project for the year ended December 31, 2018 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 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 project 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 financial statements in the Kyrgyz Republic, 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 Without further qualifying our opinion, we draw attention to Note 2 to the project financial statements, which describe the basis of accounting These project financial statements were prepared for complying with the appropriate World Bank Guidelines and Financing agreement requirements. Other matter The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result, the project financial statements may not be suitable for another purpose Responsibilities of maragement and those charged with governance for the project financial statements Management is responsible for the preparation and fair presentation of these 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 project financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibilities for the audit of the project financial statements Our objectives are to obtain reasonable assurance about whether these 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 3 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 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 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 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 project financial statements, including the disclosures, and whether the project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 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. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to commLunica1 with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicatile related safeguards. Kubat A'ymkuov Certified accountant, FCCA Certificate of auditor of the Kyrgyz Republic No. A 0069 Audit Partner, "Baker Tilly Bishkek" LLC "Baker Tilly Bishkek" LLC, License Series A No. 0049 issued by the State Committee on Review and Regulation of the financial market of the Kyrgyz Republic June 14, 2019 Bishkek, the Kyrgyz Republic "SECTOR SUPPORT FOR EDUCATION REFORM PROJECT" CREDIT NO. 5230-KG, GRANT NO. H836-KG SUMMARY OF FUNDS RECEIVED AND EXPENDITURES PAID FOR THE YEAR ENDED DECEMBER 31, 2018 fin US Dollars) Note For the year ended For the year ended Cumulative December 31, 2018 December 31, 2017 Opening balance 4 868,900 458,173 - Funds received IDA Grant # H836 KG 5 2,674,189 1,599,336 6,168,419 IDA Credit # 5230 KG 5 3,139,346 1,963,423 7,807,098 Total funds received 5.813,535 3,562,759 13,975,517 Other income 6 10,141 12,302 62,539 Total receipts 5,823,676 3,575,061 14,038,056 Goods 7 2,012,431 600,136 4,323,603 Consulting services 7 753,138 1,784,981 4,233,012 Operating costs 7 272,000 96,190 548,206 Trainings 7 2,444 - 15,253 Textbooks for fifth and sixth grades under Component 1(b) .7 3,203,603 647,169 4,040,931 Refund of preparation advance 7 - - 382,725 Total project expenses 6,243,616 3,128,476 13,543,730 Other expenses B 9,649 35,858 55,015 Closing balance 4 439,311 868,900 439,311 tnbeif fo,0 M gernent: Rysbekova Nurzat Dic~gtoef 2Financial Manager June 14, 2019 June 14, 2019 Bishkek, the Kyrgyz Republic Bishkek, the Kyrgyz Republic The notes on pages 8-16 form an integral part of the project financial statements, The Independent auditors' report is on pages 3-5. "SECTOR SUPPORT FOR EDUCATION REFORM PROJECT" CREDIT NO. 5230-KG, GRANT NO. H836-KG SUMMARY OF EXPENDITURES PAID BY PROJECT COMPONENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (in US Dollars) For the year ended For the year ended Cumulative December 31, 2018 December 31, 2017 Component 1. Enhanced Learning Improving pedagogical practices 64,388 909,199 1,786,189 Resources for learning 5,644,619 1,599,388 9,171,392 Support to ongoing revision of curriculum for Grades 5-9 131,485 59,240 340,114 Assessment of learning 81,858 218,802 418,105 Component II. Improved Management and Accountabllity of School Resources Improved financial management 34,916 54,845 315,381 Strengthened school leadership and management 44,487 149,898 362,242 Component II. Communications and Implementation Support Communications and outreach activities 2,489 5,453 23,696 Implementation support 239,374 131,651 743,886 Project preparation - . ..... - 382,725 6,243,616 3,128,476 13,543,730 agoenien t: AY Rysbakova Nurzat biDarqoAr Financial Manager June 14, 2019 June 14, 2019 Bishkek, the Kyrgyz Republic Bishkek, the Kyrgyz Republic The notes on pages 8-16 form an integral part of the project financial statements. The Independent auditors' report is on pages 3-5. "SECTOR SUPPORT FOR EDUCATION REFORM PROJECT" CREDIT NO. 5230-KG, GRANT NO. H836-KG NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (in US Dollars) 1. GENERAL INFORMATION According to the Financing Agreement between the Kyrgyz Republic and International Development Association (the "IDA", "World Bank") dated October 9, 2013, the IDA provided a Credit No. 5230-KG in the amount of 6,000,000 Special Drawing Rights and Grant No H836-KG in the amount of 4,900,000 Special Drawing Rights to the Kyrgyz Republic The financing was provided for implementation of the Project "Sector Support for Education Reform Project" (the "Project"). Project purpose The objective of the Project is to create conditions for improved learning outcomes in basic education. The Project consists of following components: 1. Component 1: Enhanced learning; 2. Component 11: Improved management and accountability of school resources; 3. Component Ill: Communications and implementation support. Component 1: Enhanced learning. This component consists of 4 subcomponents: Subcomponent la: This subcomponent finances development and delivery of in-service training program for primary school teachers and pedagogical staff; provision of teaching materials and strengthening the capacity of the Kyrgyz Academy of Education and Oblast In-service Teacher Training Institutes and Methodological Centres through provision of technical assistance in the form of furniture, materials, and trainings, Subcomponent lb: This subcomponent finances development of new manuscripts and publication of textbooks for relevant target groups; provision of technical assistance to the Ministry of Education and Science (hereinafter - "MoES"). Subcomponent Ic: This subcomponent finances supporting the piloting and revision process of textbooks for relevant target groups, provision of technical assistance to MoES. Subcomponent Id: This subcomponent finances assessment of learning system performance and effectiveness of education reforms through surveys and observations. Component I: Improved management and accountability of school resources. This component includes the following subcomponents: Subcomponent I/a: This subcomponent finances provision of technical assistance, training, furniture, equipment and materials for the design and operationalizing of an automated monitoring system for school budgets and expenditures; provision of training on the per-capita financing system in general education; and provision of technical assistance to support key stakeholders in implementing PCF and other improved practices in management and accountability in four selected oblasts. Subcomponent Ib: This subcomponent finances provision of technical assistance, training, furniture, equipment and materials for the design and operationalizing of an automated monitoring system for school budgets and expenditures; provision of training on the per-capita financing system in general educational system; and provision of technical assistance to support key stakeholders in implementing of per-capita financing system and other improved practices in management and accountability in four selected regions of the country. Component Ill: Communication and implementation support. This component includes the following subcomponents: Subcomponent Il/a: This subcomponent ensures support for communicating to stakeholders about changes in the education sector. Subcomponent II/b: This subcomponent ensures providing implementation support to the Project, including incremental operating costs. Project management The Project is implemented by the Project Coordination Unit within the Ministry of Education and Science of the Kyrgyz Republic. According to the Order No. 5814 of Ministry of Education and Science of the Kyrgyz Republic, the Project Coordination Unit has been created on March 24, 2005. The project start date is October 9, 2013. The project completion date is June 28, 2019. 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These 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 not publicly available and as such comparison of budget and actual amounts is not presented. These project financial statements consist of: * Summary of funds received and expenditures paid; * Statement of expenditures paid by project components; * Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the "USD") 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The 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. Project financial statements prepared under the cash basis provide users 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 project financial statements is balances of cash and changes therein, Foreign currency Operations in foreign currency initially are accounted in functional currency using currency exchange rate settled by commercial bank on a date of operation. Funds received are translated into USD at official exchange rate of Special Drawing Rights (the "SDR") at the date of funds receipt. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the commercial bank. All exchange differences arising in the settlement and conversion of monetary items are included in the statement of cash proceeds and disbursements Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date 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 Kyrgyz Republic and qorresponding legislation of the Kyrgyz Republic 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 advance payments, replenishment of special account or through direct payment to the end supplier of goods and/or services 10 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2018 and 2017 comprise: Currency December 31, December 31, 2018 2017 Designated account in foreign currency USD 431,702 861,436 Interest account in foreign currency USD 5,326 4,530 Tender account in foreign currency USD 2,269 2,330 Interest account in national currency KGS 7 Transit account in national currency KGS 7 - Advances paid to employees USD - 355 Tender account in national currency KGS - - 249 439,311 868,900 5. FUNDS RECEIVED The funds received were presented by the following financing methods and sources of financing: For the year ended December 31, 2018 For the year ended December 31, 2017 IDA Credit IDA Grant # Total IDA Credit IDA Grant # Total # 5230 KG H836 KG # 5230 KG H836 KG Advances/nitial deposit - - - Replenishment of designated account 1,936,863 1,690,339 3,627,202 1,760,769 11433,528 3,194,297 Direct payments 1,202,483 983,850 2,186,333 202,654 165,808 368,462 3,139,346 2,674,189 5,813,535 1,963,423 1,599,336 3,562,759 6. OTHER INCOME Other income represents interest income accrued by the serving bank on the outstanding balances of cash on designated account and sale of tender documents. For the year ended December 31, 2018 For the year ended December 31, 2017 IDA Credit IDA Grant # Total IDA Credit IDA Grant # Total # 5230 KG H836 KG # 5230 KG H836 KG interest income 5,552 4,389 9,941 5,873 6,429 12,302 Sale of tender documents - 200 200 - 5,552 4,589 10,141 5,873 6,429 12,302 11 7. CUMULATIVE PROJECT EXPENSES Project expenses on major categories are presented in the summary of funds received and expenditures paid. Project expenditures by components are presented in the summary of expenditures paid by project components. The breakdown of project expenses by categories and sources of financing is presented as follows: CONSULTING SERVICES For the year ended For the year ended Cumulative December 31, 2018 December 31, 2017 IDA Credit IDA Grant # IDA Credit IDA Grant IDA Credit IDA Grant #5230 KG H836 KG # 5230 KG # H836 KG # 5230 KG # H836 KG Procurement of electronic training materials and its processing for primary schools 126,276 103,313 189,551 155,087 315,826 258,400 Assessment in education 69,206 56,623 48,693 39,840 117,899 96,463 Payroll and related taxes 65,808 53,918 78,464 64,199 374,750 307,001 Trainings 58,130 47,561 58,130 47,561 Support to ongoing revision of curriculum 48,285 39,508 5,683 4,650 53,968 44,158 Consulting services 30,776 25,180 627,234 513,191 1,198,690 980,746 Assessment of pedagogical practices 10,762 8,805 27,171 22,231 73,482 60,122 Audit 4,943 4,044 4,943 4,044 27,406 22,422 Technical assistance on normative financing mplementation - - - - 107,793 88,195 414,186 338,952 981,739 803,242 2,327,944 1,905,068 GOODS For the year ended For the year ended Cumulative December 31, 2018 December 31, 2017 IDA Credit IDA Grant IDA Credit IDA Grant IDA Credit IDA Grant # 5230 KG # H836 KG # 5230 KG # H836 KG # 5230 KG # H836 KG o'nen 1,105,085 904,161 - - 1,179,438 964,994 aior of training 1,752 1,433 1,752 1,433 :Mjoral materials 330,075 270,061 1,189,986 973,626 - - 6,805 5,569 1,106,837 905,594 330,075 270,061 2,377,981 1,945,622 12 OPERATING COSTS For the year ended For the year ended Cumulative December 31, 2018 December 31, 2017 IDA Credit IDA Grant IDA Credit IDA Grant IDA Credit IDA Grant #5230 KG # H836 KG # 5230 KG # H836 KG # 5230 KG # H836 KG Piloting, Monitoring, Materials, Translation 94,416 77,284 15,608 12,755 110,024 90,039 Payroll and related taxes 32,492 26,510 20,258 16,580 98,380 80,116 Transportation 7,028 5,750 725 594 11,285 9,249 Printing of handouts 2,941 2,408 4,397 3,597 8,662 7,089 Bank services 2,652 2,238 2,652 2,238 Accommodation 2,332 1,907 963 775 14,027 13,945 Fuel 1,226 1,003 1,151 941 4,602 3,752 Per diems 1,139 882 2,771 2,264 7,986 7,212 Stationery 1,590 1,301 6,100 4,991 PR and marketing 1,337 1,126 6,995 5,765 Equipment 427 350 819 671 Maintenance of vehicles 57 63 781 655 Rent of conference hall for seminars - - 3,662 2,995 Creation of educational video for teachers - - - 693 567 External expertise of subject standards - - 429 351 Communication - - 123 101 Accounting manuals for budget funded institutions - - - 2,804 2,294 Rent of equipment - - 610 499 Other 5,386 4,406 3,602 2,958 21,044 13,998 149,612 122,388 52,886 43,304 301,678 246,528 For the year ended For the year ended Cumulative December 31, 2018 December 31, 2017 IRAININGS IDA Credit IDA Grant IDA Credit IDA Grant IDA Credit IDA Grant #5230 KG # H836 KG # 5230 KG # H836 KG # 5230 KG # H836 KG Trainings 1,344 1,100 - 8,389 6,864 1,344 1,100 - 8,389 6,864 TEXTBOOKS FOR FIFTH For the year ended For the year ended Cumulative SIXTH GRADES December 31, 2018 December 31, 2017 ER COMPONENT 1(b) IDA Credit IDA Grant IDA Credit IDA Grant IDA Credit IDA Grant # 5230 KG # H836 KG # 5230 KG # H836 KG # 5230 KG # H836 KG ;ation of books 1,409,156 1,152,946 - - 1,409,156 1,152,946 opmenI of new books 352,825 288,676 355,943 291,226 813,356 665,473 1,761,981 1,441,622 355,943 291,226 2,222,512 1,818,419 13 8. OTHER EXPENSES Other expenses are expenses transferred to the Ministry of Finance of the Kyrgyz Republic, interest expenses on cash balances on bank accounts and other expenses. For the year ended For the year ended December 31, 2018 December 31, 2017 IDA Credit IDA Grant IDA Credit IDA Grant # 5230 KG # H836 KG # 5230 KG # H836 KG Repayment of interest income to Ministry of Finance of Kyrgyz Republic 3,001 1,203 19,263 15,016 Interest expenses on cash balances on bank accounts 1,442 2,404 619 630 Taxes for interest income 366 269 187 140 Other expenses 245 719 - 3 5,054 4,595 20,069 15,789 9. FINANCIAL POSITION Financial position as at December 31, 2018 and 2017 is as follows: December 31, December 31, 2018 2017 ASSETS AND EXPENDITURES Cash and cash equivalents 439,311 868,900 Cumulative project expenditures 13,543,730 7,300,114 Other expenses 55,015 45,366 TOTAL ASSETS AND EXPENDITURES 14,038,056 8,214,380 FINANCING Funds received 13,975,517 8,161,982 Other income 62,539 52,398 TOTAL FINANCING 14,038,056 8,214,380 10. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2018 comprise: Sources of Appli- Date Direct Goods and Total financing: cation payments services, including audit, trainings and operating expenses Credit #5230-KG 64 October 24, 2018 - 176,578 176,578 61 September 20, 2018 - 322,064 322,064 59A August 30, 2018 - 400,000 400,000 57 August 3, 2018 104,403 - 104,403 55 July 20, 2018 586,575 - 586,575 53 July 20, 2018 356,970 356,970 51 July 16, 2018 - 255,170 255,170 49 July 11, 2018 - 170,076 170,076 47 June 29, 2018 154,535 - 154,535 45 May 14, 2018 314,710 314,710 43 March 23, 2018 298,265 298,265 1,202,483 1,936,863 3,139,346 14 Sources of Appli- Date Direct Goods and Total financing; cation payments services, including audit, trainings and operating expenses Grant #H836-KG 65 December 12, 2018 96,555 96,555 63 October 17, 2018 148,171 148,171 62 September 20, 2018 263,507 263,507 60A August31, 2018 330,000 330,000 58 August 3, 2018 85,421 85,421 56 July 24, 2018 479,925 479,925 54 July 24, 2018 292,066 292,066 52 July 16, 2018 - 208,776 208,776 50 July 11, 2018 - 139,161 139,161 48 June 29, 2018 126,437 126,437 46 May 10, 2018 - 277,690 277,690 44 March 23, 2018 - 226,480 226,480 83 3:9 1,690,340 2,674,189 11. DESIGNATED ACCOUNT Designated account for the period from December 31, 2018 and 2017 comprises: Designated accounts IDA Credit IDA Grant No.5230-KG No.H836-KG Currency US Dollars US Dollars Bank account 1091828235573678 1091828235573173 Bank OJSC "Optima Bank" Bank's location 326, Zhibek Zholu avenue, Bishkek, the Kyrgyz Republic Description US Dollars US Dollars Total Balance as at December 31, 2017 48020 381 196 861 436 Replenishment of designated account/statement of expenditures 1,936,863 . 590% 33 3,627,202 Total funds received to the designated account 1,936,863 _ S90.339 3,627,202 The amount of eligible expenses paid 1,774,830 42 087 3,226,917 Transferred to transit account 456,450 3735P9830,019 Balance as at December 31, 2018 15.822 2 D 89 431.702 12. UNDRAWN FUNDS As at December 31, 2018 undrawn funds-with breakdown by grants and credits are presented as follows: Credit 5230-KG, Grant H836-KG, SDR SDR Approved grant and loan amount 6,000,000 4,900,000 Disbursed during October 9, 2013 - December 31, 20f8 5,508,343 4,373,389 Undrawn amount 491,657 526,611 15 Credit # 5230-KG, Grant # H836-KG, SDR SDR Funds received as at January 1, 2018 3,281,198 2,476,356 Disbursed in 2018 ..... 227 145 1,897,033 Funds received as at December 31, 2018 _ 50b 4,373,389 13. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. Contract value of obligations valid as at December 31, 2018 was as follows: Counterparty Contract # Contract Cost per Paid up to Remaining currency contract (In December amount to CCY) 31, 2018 be paid (in CCY) Pitambra Books PVT.LTD SSFER/GICB/1/2/1/3 Lot 3 Euro 244,793 24,479 220,314 SSFER/G/ICB/1/2/1/3 Lot Pitambra Books PVT.LTD 6.7.11.12 Euro 1,052,436 105,244 947,192 Pitambra Books PVT.LTD SSFER/G/ICBIl/2/1/3 Lot 8 Euro 342,017 34,202 307,815 Grafica Veneta S.p.A. SSFER/G/ICB/1/2/1/3 Lot 10 Euro 440,453 396,407 44,046 Hanoi Printing JSC SSFER/G/ICB/1/2/1/3 Lot 4.5 US Dollars 268,384 241,546 26,838 N2 SSFER/CS/LCS/3.0/31c, Baker Tilly Bishkek LLC 30.01.16 US Dollars 35,950 8,987 26,963 14. LEGAL CASES There were no any legal cases related to the Project. 15. EVENTS AFTER THE REPORTING DATE During 2018 until the date of issue of these project financial statements the following replenishments of designated accounts of the Project were made: Sources of financing Applicati6n # Value date Total Credit #5230-KG 66 25 January, 2019 93,836 67 8 February, 2019 87,818 RN000000326982 27 March, 2019 (53,000) 69-B 20 May, 2019 107,893 69-B 24 May, 2019 107,020 69-B 31 May, 2019 91,975 69-B 31 May, 2019 209,712 645,254 Grant #H836-KG 68 26 February, 2019 51,813 70-B 20 May, 2019 87,312 70-B 20 May, 2019 88,276 70-B 20 May, 2019 75,306 ._ _ ...-. 20 May, 2019 . .... 11J 5 474,412 As at the date of issue of the project financial statements no other significant events or transactions occurred that need to be disclosed in the project financial statements. 16 bakertilly Baker TILly B3ishkek LLC trading as ELaker Tilly fzs a rnernber of the gICobal Corntact u5 network of BApir Tilly International Ltd.. the members of w1hich ga separateiand IndepPnddent legal endims. 103, lbrairMov sit., BC 'ViCtWr 7th floor, BIShkek, 720011, Kyrgyz RepLblic 02019 Baker Tilly ww .bakertilly-ca.corn