SECRP International Bank for Reconstruction and Development CONTENTS IBRD Loan No. 9120-YF MINISTRY OF HEALTH - Serbia Emergency COVID-19 Response Project IBRD LOAN NUMBER 9120-YF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Independent Auditor's report and Summary of funds received, The Summary of expenditures, The Statement of summary reports or IFRs, The Statement of the DA; and a Balance Sheet showing accumulated funds; Annexi and Notes For the period from 01 January till 31 December 2023 Belgrade, July o8th 2024 Pages Independent Auditors' Report Project Financial Statements Summary of Funds received 2 Summary of Expenditures 3 Statement of Summary reports 4 Summary of Designated Account 5 Balance Sheet 6 Annex 1 - Reconciliation between the amounts shown as receive by the Project from the IBRD and that shown as being disbursed by the IBRD Annex 2 - Management Letter Annex 3 - Representation Letter Statement of Summary reports pwe Independent auditor's report To the Management of Ministry of Health of the Republic of Serbia "Serbia Emergency COVID- 19 Response Project" Our opinion In our opinion, the special purpose financial information for the Project No. 9120 - YF entitled "Serbia Emergency COVID-19 Response Project" (the "Project") as at 31 Decemberl 2023 and for the year then ended, is prepared, in all material respects, in accordance with the basis of preparation as set out in Note 3 to the special purpose financial information. What we have audited The Project's special purpose financial information comprises the Summary of expenditures as at 31 December 2023 and for the year then ended and related explanatory information. 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 special purpose financial information section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Ministry in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) and the ethical requirements of the Law on auditing in the Republic of Serbia that are relevant to our audit of the special purpose financial information in the Republic of Serbia. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the ethical requirements of the Law on auditing in the Republic of Serbia. Emphasis of Matter - Basis of accounting and restriction on distribution and use We draw attention to the Note 3 to the special purpose financial information, which describes the basis of accounting. The Project special purpose financial information is prepared for the purpose of reporting of Ministry of Health of the Republic of Serbia on the activities of the Project with respect to the funding received for the completion of the Project objectives in accordance with the respective loan agreement. As a result, the special purpose financial information may not be suitable for another purpose. Our report is intended solely for the Ministry of Health of the Republic of Serbia and should not be distributed to or used by parties other than the Ministry of Health of the Republic of Serbia. Our opinion is not modified in respect of this matter. pwe Responsibilities of management for the special purpose financial information Management is responsible for the preparation of this financial information in accordance with the basis of preparation as set out in note 3 to the special purpose financial information and for such internal control as management determines is necessary to enable the preparation of special purpose financial information that is free from material misstatement, whether due to fraud or error. In preparing the special purpose financial information, management is responsible for assessing the Ministry's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Ministry or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the special purpose financial information Our objectives are to obtain reasonable assurance about whether the special purpose financial information as a whole is 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 this special purpose financial information. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the special purpose financial information, 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 Ministry'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 Ministry'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 financial information 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 Company to cease to continue as a going concern. We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. PricewaterhouseCoopers d.o.o., Beograd Belgrade, ,� й С о о о о о о о о � .v v О О О О О О О О � д о О О О О � О О � � О _С л Ш LL р � �U с > � ' о � О г�а р fl' N О О О О О О О � � а� � � о 0 � О га р У М С О О О О р � � о�� z о N N N � �. � � � N � _ О.� О о CJ т U N �- 'а с °' � - С � т `, '�,�` од а`� о ` � о о о � о о � о u,.i У t� О М О О о0 О о гв � ё СО О М О � .-� О � � с[1 С N t� Ш гv - И С w О_ � О О О О О СО О � С О 1� f� М � 1� д v 00 N О V О � � v �о т ш n с м �ч а и v � л т �t n .� � N п? й оо оо о гЧ о о о о о � о Q�1 О О N о О М О С N 1� О О - 01 О О .� н т v n о а n о � n а г. м .-i � г� er �--i О н nl в� N М � 1� � 1� N �-1 М V л � О � � а N о о о о о а 1� М О 00 О � М LL7 о О О С и � О М - О г1 l�0 о М О l0 о О 1� � 1� lD М l0 сУ � Oi д' М tT �л о т и и и Г� lD л ОО И N 1Л О � � N ^ ry N � О И � п О � oN � j 0�1 О .-и-� � д�' N V :;, N `"� г� N м оо e�l а й о � со � j л ш n n т � г.i � о v о ш ш 1� � Е +• ш Ш С (, с� р д' � N С И О W '�'' �U � м � � � � Q >_ ш т 'ш z� ш `д с� 'i С °' ш ш о � о _ �о LL-�а �� v� cz 3 0 т ш оС а С7 LL с yi > ,i у cz. гв � и и � � г`о v и о 0 ш гв s т 'L-' v г с �° Q � а � � � .� � � о � а� LL v � � \ � N ly И tL LL И � � •ь '6 С ,J � i1 �, � �� гоо �� ��°J- �о � � � �о z z т «. � .� й° LL с0 °° т� о� г°- � -° Or т ,�, О О � ���'�ь� У а� ш � � о 0 �`.� i � О � о л л �> д О_ `� ° Ш ° Q1 tND О l�D ° О и � О �О О �О �' �С ° Z � � �� г0 V oN lD i га rn `�°° � ^ � � 'т �+ а � � о � т и -F �г-j � - а � '� > � О у, \ и с й о � с и ш ш °D � и о rn ш о Й � г� � ,У о � rn т ш �е rr� г.i г�i � с ^� i г� г� � т о v оо оо -о ai ai ш � `i Е •--i � �^ с а а о ° а ш и � � '_ ° � v о о о °- У � О ° О Ш � � _ .1 .� .-� О л У t� 1� о `^ т rn " `� �--i л ^� `�" т т ги L а, О, о v -о п а' �' � v �t п v ш � > ш О о о а \ о ° оо � � � � гv о N л � о � г� � �, т оо оо N i л � о v `°. `°. г� � � � � а ш ш � > v � о о о \ ° °о °о � � .-i а" ° О О О � О О о гг� О' О' ry i М (ч'1 о р� гЧ N N 'а L � а ш ш � > ш О м iч � о ° гч .- +� ш f6 � � v � � Й � � ш � �У ш р й �и � � _ �> Н Q ш и i у � (6 � �j о л с о ш v '= �v �, о И '� W т �а и qp � U С Й Ur д'р Q1 С а Ш И б1 �(9 Ш'О И � �У U р Х V гг"VV�� (�ц ш° v ш ,�� а°' y,i с SS�� °° Ш L1 И и и N � t0 `\,� cL р � с � ш ш с � ш �" ш о° г°о у � ш � � а � ш Й � � � � а -в г � � aL""' � о�� .� й С fp р4 � о � о +. й° 00 с� °v; �- U�i N т й с v о о о °о °о у1' ш ш � Ч а � о � о о гv о о а о н ц м м v � с о r.i м ш а ш г� �J а � � v� о !"� и а и т го У о а С ° С г-гJК � т О ° а И С О N � О н ° т о р У Q т N О О О О о О О О о р �р � U � С й - ° > 7 � О а о т и а ^� > с .� а � г О � СС с v f0 > °� �?� � К р Ш О! О ~ � � '�..•_, Ш � р га О о0 V О N � т ш т о � � �� р а о и n И с ,� т .ti v � о -° н .и-i о а � ° �• v ^� ы й 1� � с Q о 9 `ш ш � ., °_ С ry П1 - � н F N о О о О О О О 00 N о 1� 1� и и Е оо г� о м -6 ° т н v й � а р т с 1� н v гс пi ш оо н � >_ т о °J � а ш й й г°iv а ё � � т г� н а г� т .-i пi пi пi н н � т м и о т с r.i т г� м ш ct т Q о � а ш й и � N � ° оо т о д и м '� и т v м ьn Е т о i. н н -6 ° г�v � о v й н т � о0 т »°- �O � .-i .-i м й °1 т сг v й > - а 'ш � v ш о й � ° т n т � т т rv � n т � й гri ,ч оо oi г� н гv оо г� оо т N т -Oс м т т т оо оо оо и п' ,-ч �.i о н v а о ш � т ° и � о м а о о n v "� ш и о м и и Е н � н n n -6 о °и й т о а оо и оо а w °1 т .-N1 н N го >_ - о v ь- ш ш о � v й й о � � т и оо н г� о и +- т й г� пi и о м � г� о н о т н т и с о i. и оо и i. w и v с .ч с о пi о о и n v о т ^� о п Н F м � оо о о о й °о а оио Е^� и н � о а � �O ° � й н °т а оно с"- о г� 1� rv и и � н й n � и о т > � К г� о 'ш О `v � v � � � т Е т z v и Q ° '�" N � о ° ° м � ` � О Q Q °- � v •и � м Ш ° `^ oN 01 � � К � � 'j � N� � v 01 О т � � � N � � й И а� £ V и � - Ш П1 С У а � �') � W С � Т �"� � С N О! v v С И ���� � са а � Е � с � = = Е w `-° � � � � ш'о > C0 а z v � v ау`i � а �`ш с С� � Q� Й а гш Т � LL т .� уш„ '�' А ia °- гсо т д а с �. с й .. _ Е т � ы Q р� > >� С Q J J � � � С N С й рр �у � р- с а� т ш ГJ � ° О р д ш й° ш О`�° G т т � - _ ? � f- и о т й с� N о °°о оо °°°о оо о °' v} о о о о о • � о � о й м о гм., о гм.� й Ш � � о ш z � � Q- о � � � � � О й � гр � N � г о1 � � О о �с� л � � � �_ О р � т_ � i � � �' О О ; � о о о о с� о г� оо о У с� � е� о � � � � � и U о оо г" о v г" 1� м �,°� с о г.1 го � ri т � ov о � °.�° n�i � = �� м т � г� гч д� и л � � т � � L ni ш оо �-+ й i: л v о � ш � � G� го � v ` � � т v � - р • ш т � о �`� о у и � = с s L � ш г.� оо т � v оо � .-i м Q � г� и т ct м пi �t г� �д v о м о г� .� пi � rn.� т ^� � cn ,-+ c•i о.-i .-� о .� с� � о v rn о rn и м .-а т � ао и �t rn оо � � � � v л � v � a�i v ш 0 й й ш °о м ш � м � оио о .� � ,� г� � г.i � rn � N О' � rn � т т ni �-i л и �.n rn О N rn N о0 м оо и оо v и оо ао и L г�i о � оо о oi а а � � и ,-� � д а и ш 0 � Z т и � О +'' �'' ° N � v Q ш Е Е о � У ++ � д�.� Ш � � а..,, � р, га � �и а1 �а � а1 й и Q ш N о � L и � ш � � �� р�р й Q 'н' � Ш О �.,� � N гв 'о � sz � С7 ш� й �п - У v ш т `� �, г° � п � � • Q о 3 г�о ; � и к у � `�� г�о " с � с n. л са -° � с �++ = са v � � � с �у а `i' � � °' °J и " � \ ` z � • т � п n. Е д � � ш ш � � � z � •>'=' о с � � 'о го � ш й С �� �? �� � iy � й Q- � а � т ~ +' � Ш 'р � � а.�+ N � � � � 3 а Ш � � � а0 Q l2 Q п!_' т� � т ��; � � О � т О fи0 Ш й� ш О Q� т й ���� 1- 0 а �� 1- с� т �� 11 о о о о о о о о о о о о °1 Q1 о °о °о °о о ° Q с� о о о о � � � Q� � N N N N '� и j � U О � z � . iy f]- � с J,11 � � � м � .О � � р � t ni `� О � � � О О JJJ У � � т Оо О О О О N л й о <р р,., оо N о � � м � г�о CJ и V_ СО N_ 00 t� � = с � U � � � N М rt f� СО �D � т т � Ш U CV СО о I� I� Г дд � � О ш р � : Е "- м Ш У � � � � � т м ао �r и .� м й с ,� о со и v м � n ш р .у О с� (� � О) О� и га с`') 1� N a-i О - � N N О � W О1 и 1] � N (`� � �t 00 о) 01 00 �+� � ch и v а °- � ш v а v v °J - О т � м � СО О С'��7 t�0 � 1� Ои0 !� � 1� � б� 01 1� V О Г о � N N е- N ш� а°�о � oNO а`�'�о й � cv о er" о� а; а ш с� � О � м � � о о о � оо с� о о г� и о смv й й °°о � v й°о � � о N О �� Г М � � с`т') с'о') lMD ОГО � � N о N 1� N V N �О tf) с�ц м (U � О h N N ct � i GO !� I� 1� п � � � U ш � ш О о L �и, `° � °' а ° о :«_. U v cUi � т °� Q с � � � О � ш ,., о � й т v и гz � р в_> Е с_°i _р с й с� `L и +: �� со т_ ш UJ Q У di С � i) i..) � ш У о� Е и оС °- _ С7 � � с с о Q � и � ш т - � F- ш с с т � � о � � о N С и� U � � С iЛ М N No т д oU � о а. У > �" V р L i (6 � � W LL � � � � _ (�4 в�+ � LXiJ о tJ \. I- 'в � о га �!� =р � г�л й ш ш ш ш �`�-+ ш У г3в г�в � j у � � ш`ш ш_ Q и 2 � �� и о й� � � И О. � с0 L� с � и го а -о � о-в �°� гЛ х о� �-о О � г ш °1 о � z� а ш� - ш с° � о � ш U �" и tЛ � о� � Ш й�� .-. и. Ф n. Ш ш � z v и F- LL с Ш гv J v й° о т � � ш т g � � й� �° с д ш й Н � о�` � с Е Fa- и 1а- оэ а Q и� Q� о и_ L� 0 о о о ш а� И т 0 � т ° Ш Q т О �° �i О о U F- а С� и w � а. 1- � Н т ANNEX 1 RECONCILIATION BETWEEN THE AMOUNTS SHOWN AS RECEIVED BY THE PROJECT FROM THE IBRD AND THAT SHOWN AS BEING DISBURSED BY THE IBRD � � � � о cv W о � ы � д z � '� ^ о` .д о .й д а� � а А �� � � н �. � и � о � 'b � о �° .� �' ry а � 07 ы N w� С� � � � о .� � ш 'b +, у � � н .Н �р �0 � Ф � l� �D � \й й � � � `►� � н н W � � � N b О N � � О 'b � cv � � CG н N "С +' � с`'�v oN а� й о с. о � Ф cv 4. N А р � � ы о °' � г. � с; � ш � Са +� л� а -д � � .�� ой � `" �, а� s+ � �� �� 3 � w •� и � � � � � н О N �� Ш � �, [� Я �"i [-� �Гй � О� ы 3 ,� а � � � +-, .� '�, ш � с� � b и � ш 'С ++ О р,д А ,b н д' �", F+ �С `~ �и � �г 0 � � W � � � F s�б Г1ч � О с� о Г1ч й PROJECT BACKGROUND Serbia Emergency COVID-19 Response Project (SECRP) for the year ended 31 December 2023 International Bank for Reconstruction and Development IBRD Loan No. 912oYF 1) Project Background - General information The Republic of Serbia has received a loan from the International Bank for Reconstruction and Development (IBRD) in the amount of EUR 92 million equivalent toward the cost of the Serbia Emergency COVID-ig Response Project (SECRP), Loan No. 912o-YF. The Loan Agreement was signed on 29 May 202o and became effective on io December 2020, and the project closing date is 30 June 2025. The objective of SECRP is to respond to the threat posed by COVID-19 and to strengthen the national health system for public health preparedness in Serbia. The loan proceeds will be applied to payments for goods, works, related services and consultancy services to be procured under this project. The SECRP consists of the following components: Component i: Emergency COVID-ig Response Component 2: Implementation Management and Monitoring and Evaluation Component i will provide immediate support to Serbia to enable limiting the local transmission of SARS-COV-2 through containment strategies. This component has three subcomponents. Subcomponent 1.1 Case Detection, Conflrmation, Contact Tracing, Recording, Reporting This subcomponent will, inter alia, help strengthen national reference and public health laboratories and epidemiological capacity for early detection and confirmation of cases and support the establishment of a BSL 3 laboratory. The capacity at the "Torlak" Institute of Virology, Vaccines and Sera will be strengthened by establishing a laboratory which fulfils requirements for handling pathogens such as SARS-COV2, since there is currently no facility in Serbia that can handle pathogens requiring a BSL-3 or higher. Having appropriate laboratory would enable widening the research related to detection of viral presence in air, wastewater, soil and elsewhere. Most importantly, such a laboratory would enable handling of many other pathogens that require such a level of biosafety, thus greatly strengthening Serbia's national laboratory system. Subcomponent 1.2. Physical Distancing Measures and Communication Prei2aredness This subcomponent combines activities listed in Component 1 of the global Multiphase Programmatic Approach (MPA) Project Appraisal Document (PAD) under Social Distancing Measures and Communication Preparedness. Communication preparedness activities will include developing and testing messages and materials to be used in a pandemic. Subcomponent 1..3: Health System StrengtheaLnQ Assistance will be provided to the health care system for preparedness planning to provide optimal medical care, maintain essential community services, and minimize risks for patients and health personnel. Strengthened clinical care capacity will be achieved, inter alia, through the procurement of ambulances and other vehicles, hospital beds, ultrasound devices, X-ray devices, computed tomography (CT) scanners and X-ray devices to be installed in community health centres. Component 2: The project will cover the costs associated with project management and coordination. 11 м N N О О N О О N д' l� д' М N �С1 О О �р eF .ы Q� м �-1 И О ei �р е} N О е-1 0� М О м � И �� м 0� д; N lO ^ `1 � О � � N � �{' 7 n `о n ^ � 7 � _. � .� U � ;.� 0 � w � �� N � ,� О G� д� м ni О Т о � У � t,�,� М �D М д� И СО � � U ,-� � 7 г1 [� О М �-j ry' _ (6 "CS �д л `-"� � N СО N а � СО � О � � � н � г �J к ги � га � о Е- г„ о+ � и о м.-+ � д�, й � о rn д°� с�+ � 7 �л' о [� t� �р ,-i 'С � �''� � о м � О1 а� `v д�"' д' д�' � о � к' с� а� к У о Е- и И д+ �h L� h N N у О О� т О] О ri � L, И rn и rn N h n � � �--1 М м м � � L" н с� N (\ м �0 � у N � � С„ О 1\ � N � �-+ О Е о о о о о о о р �,� о о о о о о о р о а� °� а�т � ,С о� ом р С� � г--, N и м t� 0+ t� N О � � � � iл м .-i .-+ � ,� W о ° � � � � v й � W �'' о � ш а� � о � о й � '� гоС q 'й и '-' О С G Н � ы а г"а � � a�i '-Э р U %, � и U д V .� fб и > _ � � �_ N � О � � С" (б U (J � � � с о � � � �, С7 � о ш и V � и N� о � Ш С о ""' ш � С� с�'0 cN�t � f0 � � � � � о О (О (6 г. CJ bA й 4: с4 N С r,� � � G р С) � �'. W о � \�. � �н W у о N.. 'О д" � П$ У в--1 ,'�''j �-�1 ш й j, N� s. д � ° � Q N о � л � +'�+ ❑ °Ш � гv С i' `л k" -� О t]. � О � р, � Q ш О_ Q t�D С.,7 И � � F Сг. � F t]А 'о � г+ п7 М � О G'� ш v° v° �-+ ,-+ ,-i v° ��'S с � т PROJECT BACKGROUND Serbia Emergency COVID-19 Response Project (SECRP) for the year ended 31 December 2023 international Bank for Reconstruction and Development IBRD Loan No. 912oYF 2) The Loan Agreement The Loan Agreement Number 9120 -YF between the Republic of Serbia and the International Bank for Reconstruction and Development (the "Bank") became effective on lo December 202o. The Bank agrees to lend to the Borrower, under the terms and conditions set forth or referred to in the Agreement, the amount of ninety two million Euros (EUR 92,000,000). The following table specifies the categories of Eligible Expenditures that may be financed from the proceeds of the Loan ("Category"), the allocation of the Loan amounts by Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category. Amount of the Loan Catego Allocated Percentage of Expenditures to be financed (expressed in EUR) 1) Goods, works, non-consulting loo% (Inclusive of Taxes other than Value Added services, consulting services, Training, and Incremental Operating Costs for the 91,770,000 Tax and Customs Duties for works, goods and non- Project consulting services) Amount payable pursuant to Section 2.03 of this 2) Front end Fee 230,000 Agreement in accordance with Section 2.07 (b) of the General Conditions Total Amount 92,000,000 UNDISTRIBUTED FUNDS Undistributed funds received from the International Bank for Reconstruction and Development (IBRD) as Of 31 December 2023 is cash on the Designated Account amounting to EUR 4,581,785. 13 PROJECT INCOME AND EXPENDITURE PAYMENTS Expressed in EUR 31.12.2023 31.12.2022 31.12.2021 31.12.2020 Opening balance 850,163 1,127,358 0 Income Withdrawal Application 12,654,764 1,313,033 2,331,8oo IBRD FUNDS-14.06.2022 Bank Statement 100 Direct Withdrawl 10,899,737 43,401,744 6,414,270 WB fee 230,000.00 Total Income 24,404,764 45842135 8,746,oo 23o,ooo Expense Goods, works, non-consulting services, Operating Costs, Training and consultants' services for the Project (except for goods and works for Part 3(b)(i)), including audit, and for Quality Improvement Sub-grants -8,923,242 -1,590,228 -7,618,712 0 Goods and works for Part 3(b)(i) -10,899,737 -43,401,744 Front - end fee -230,000 Total Expense -19,822,978 -44,991,971 -7,618,712 -230,00 0 Cash balance per Bank's statement 4,581,785 850,163 1,127,358 0 Belgrade, Finance Specialist PCU Coordinator Dragana Gocevi6 - Biljana Kozlovi6 PROJECT BACKGROUND Serbia Emergency COVID-19 Response Project (SECRP) for the year ended 31 December 2023 International Bank for Reconstruction and Development IBRD Loan No. 9120YF AMOUNTS DISTRIBUTED AND OUTSTANDING TOWARD IBRD The distributed amounts of total Loan Funds, as well as available amounts, as on 31 December 2023 toward IBRD, are presented in the table as follows: Total Funds Distributed amounts Available amounts Expressed in EUR 9120-YF 92,000,000 70,504,443 19,336,339 OTHER Details of the Designated Account of the Project are as follows: Account No.: 01-504829-100193230 Depository Bank: National Bank of Serbia Belgrade Address: Nemanjina 17 Loan Number: 9120-YF Currency: Euro (EUR) 15 PROJECT BACKGROUND Serbia Emergency COVID-19 Response Project (SECRP) for the year ended 31 December 2023 International Bank for Reconstruction and Development IBRD Loan No. 9120YF 3) Basis of preparation 3.1 General The accompanying special purpose financial statements have been prepared for the purposes of reporting of Ministry of Health of the Republic of Serbia on the activities of the Project with respect to the funding received for the completion of the Project objectives in accordance with the Loan agreement Project No. 9120 - YF entitled "Serbia Emergency COVID-19 Response Project" from IBRD (International Bank for Reconstruction and Development). 3.2 Accounting Records and Basis of Presentation Funds originated through the IBRD loan are accounted for using the cash receipts and disbursements basis. The Project Financial Statements are prepared in accordance with a comprehensive basis of accounting other than international accounting standards or national standards. The comprehensive basis of accounting is in accordance with the financial reporting provisions of the Loan Contract No. 9120-YF, dated ioth December 2020 between International Bank for Reconstruction and Development (IBRD) and the Government of Serbia ("the Contract"). The financial reporting provisions of the Contract are based on generally accepted accounting principles and practices and relevant IBRD / World Bank guidelines. The Project policy is to present Project Financial Statements on a cash receipts and disbursement basis of accounting. On this basis, revenue is recognized when received rather than when earned, and expenses are recognized when paid rather than when incurred. The Project Financial Statements are presented in Euros (EUR) and all values are rounded to the nearest euro, except when otherwise indicated. Acquisition costs of non-expendable equipment and supplies are expensed on payment. Accordingly, no depreciation charge is required to be set aside. The accounting policies have been applied consistently throughout the period. 3.3 Exchange Rates and Foreign currency differences The expenditures paid in Serbian Dinars (RSD) were converted to EUR at the middle exchange rate of National Bank of Serbia in effect on the date of each payment. The IBRD disbursed the funds to the Republic of Serbia, Ministry of Finance in EUR, which were afterwards forwarded to the project-designated account opened with the National Bank of Serbia (NBS). During the year, the funds were converted into local currency, the Republic of Serbia dinars (RSD), using the NBS middle rate on the date of conversion transactions. The local currency funds originating from the conversion that had been transferred to the Project account open with the Ministry of Finance Treasury Administration in RSD were afterwards used for purchases of goods and services by the Project management in local currency (RSD). For the purpose of presentation in the Project Financial Statements, the amounts have been converted to EUR, the reporting currency of the Project, using the historic foreign currency rate as at the relevant bank conversion transactions; therefore, no foreign exchange gain/losses are reported. Serbia Emergency COVID-i9 Response Project (SECRP) International Bank for Reconstruction and Development IBRD Loan No. 9120YF CONVERSIONS in 2023 Date of Bank DteroE/R oan Amount in EUR Amount in RSD conversion ERprovision 27.01.2023 117-3739 899.94 300,000.00 35,212,170.00 20.03.2023 117.3152 599.92 200,000.00 23,463,040.00 30.05.2023 117.2781 269-97 90,000.00 10,555,029.00 06.06.2023 117,2710 17,999-33 6,ooo,ooo.oo 703,626,ooo.oo 14.08.2023 117,2011 14,999.86 5,000,000.00 586,005,500.00 TOTAL 11,590,000.00 1,358,861,739.00 17 ANNEX 2 MANAGEMENT LETTER F U W � о х а� ww z о oN а� и °� �� о� � � А �Z О -�Q1- Uo �� А С�7 � � н � 1 (� � W , � � � 1 W и �, I а� � � � а а� х � о � � 1 " �л v N � л � � ti � О •� СО � � Э �-о ш и � р и ш -о с д с с� ш З �(ц �;._ С и О+' т� � и � � � й р•- rn_ � � w о' ш ш ш�Е Q ч= � � с а �� с ш Е й� � шгао .с rn .д� о м о w и '_' -п о а с -� с ^ -р -рйот тш °- � �.� �-° у �° i� й й с с й о сса с о ш° 'с 'С ш °�ссо°с� Е й с° т � � с с6 Ш з � +• .� �+= с о � w � и о с Ш° Ф О и � � N Q � Ф о а � '-' ::. и � fl- N 'о � � ° с С с •� й_ и �°- �� с й у о с� � и•� v �_ р с• ш - �Е � с с.� а> `о .О i с � и 'о �.N_ и •3 с Ш � •� � � ` и � `• V � � «� а Ф • � � ° � � С U (И6 � �, р �°-, �_ N � � _ о "о � +' � (4 С О с0 а О(6 '6 с ?' С � с N "о V Ф� и и � и гЛ ��= � О с С ++ О и U п .о"' �ц � � Q N с'� "'°'' i1' � И И � � О t � f1 � N Х п � � О � � N Ш о� у � ш i, _ ° гп с и> 3 � ш = о _ о а� � о`т: � = о ы� ш с`•'= о � и с о U° гв � с � й и v > � � р о и Е а о � п V � :% Ш с�° •и � и � и р р �. Ф� n о т с � с �U п о� $ � 'с с о°' � ш � с о о.с о� о U� с� ° V И � С� L с L1 +� � i"О о N N N � О.р � о � Ф � р с с с С Q, V"р О,��,,, Ф � о р i+= о ср с -р � и '� � и 3�. ш •� � L т � ш •т и о � � р°° _ �. � ._шс �оо � о � � о' � '� �° � с � о ш � � �ооо � и оги сирЕ �с и О о Q v� � с �� � о и с у о л �„ и и с•с т Е ° о �� с°� Е� � ° ,= 3 пs о tYi � а.с � с� � �_с о й � �� о � о � '�- � :-: -с й � •3 � о О '� � с и о'й � � •� о �� U п и с0 А с�о-°'пп и -`т �шт �� й ш и . ш т � ш с� w-о с � >+ о о о. т �� й -° � Ш ��� -в .с °-� ш о с c�i � Е•� о с° � й ` - о � U и а% � N N � �° ° и й с� � � о Ш �о Ш О•U� с р_ с с�. О ло,�' о р О 3� (� 'U -о U с N О о р w и р_ о 'р � :У О С� .-� � � � •и Ф � � v � о N Е 'С � и -р "о � сэ � й � 3 о ш Q � о о -а и д ш сшi `� �� ш сро w � � � о т U ш о ссо о `ш � °� и а о�� и °? L о:, с ш L '� ° 3 Q W а р w с � о ° �� �` о w� •> �� � д о о .о с ш У ° о �°� s ш о= с°� t6 с ш�° °� о °' с � _ и Cj � Ш = � О� U р 1 ��� С� и�� Ш� и р _ (ц U N ._ S� р_ L.., р � С � t ( � 0 о j(6 С С� � "р �' 0 С Ф N Ф� О С � w ""��" °'а`.п �' ° L с`ш � о с� Z' с� Е с '� r' '� 3 °_� � л L Ci � � � (6 .и °' � о � С_Л ° .т +� й �л � .� и N N � N � 1,� i � 1.`��j � .7 ' � С •� '!П о с � С � и N С V � � N V°1 �и � _ 'с > О� т � о•_. �'и � � �а о о ш� � и ш �.в w а- � й U р О о � Ф �'U � ,с •и и С � � �.� � '� (Е С ' Ш с>и с а° д ш °' � и ш 3о .Е � ш о а°• о� с ш U о _/`� °� � и LЛ �`- р N п и Ф w ° U О Ш С �� с�� ,� ы У_ >, `�. '> Q -� � Ф О Г ч- N � о о��� N U т V V N �� 7°,' •и N "о ,�°„ , , о.... у�`+ �� о(6 о О = � с� р+, со й Q и Q .`� 'v � Ш 'С ° � Ш N ,r йсв��-Q >^ � c3fl-�cu'о ш _ °'� >о� �° 3 `� рш а.+ Q.ш .✓ р � � � су о и= N � _ <Л и N� д ��а и т ^ • ' • о ° L �. ° га о о ш° т ш оо ш °"о о й� р� � � rn о, о-.._д ��•�_ �' _ �- _.' � Ш __. . F+ � t� � д� о � � N с'й `., св д 2 со О Н� `•- 一公