"Kazakhstan Resilient Landscapes Restoration Project" Project Financed as part of GEF Grant Agreement No. TFOB6007 dated June 23, 2021, between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Financial Statements for the Year Ended December 31, 2023, and Independent Auditor's Report "Kazakhstan Resilient Landscapes Restoration Project" Project GEF Grant Agreement No. TFOB6007 Table of Content Page Statement of Management's Responsibilities for the Preparation and Approval of Financial Statements for the Year ended December 31, 2023 Independent auditor's report .............port................*........4.......... 6.... ..................... 3 Financial statements for the year ended December 31, 2023 Statement of cash receipts and disbursements ................................bursements.7................ 7 Statement of Expenditure by Com ponents ...............mponents.............. --...... -............................... 8 Notes to the financial statem ents ............................tements................ ................... 9-14 ANNEXE 1. Reconciliation between the amounts submitted by the Executive Agency and those disbursed by the World Bankank 2 Statement of Management's Responsibilities for the Preparation and Approval of Financial Statements for the Year ended Decembe-r 31, 2023 The following statement which should be read in conjunction with the Auditor's Responsibilities section is made to distinguish the respective responsibilities of the Auditor concerning the financial statements Project "Kazakhstan Resilient Landscapes Restoration Project" of RSE "Committee of Forestry and Wildlife of the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan". Management of RSE "Committee of Forestry and Wildlife of the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan" (the 'Executive Agency') is responsible for the preparation of financial statements for the "Kazakhstan Resilient Landscapes Restoration Project" Project (the 'Project'), funded under the GEF Grant Agreement No. TFB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development dated June e23, 2021 (the 'Agreement'), that fairly presents cash receipts and disbursements under the Project and expenditure by components for 2023, and the financial position of the Project as of December 31, 2023, following the International Public Sector Accounting Standard (IPSAS) 'Financial Reporting under the Cash Basis of Accounting' issued by the International Federation of Accountants (IFAC) and the World Bank _ requirements for financial statements preparation. In preparing the financial statements, the Executive Agency is responsible for: e* Selection and application of the relevant accounting policies *Appropriate, reliable, comparable and clear disclosures including accounting policies e Additional disclosures for the year ended December 31, 2023. Executive Agency management is responsible for: * Designing, implementing and maintaining efficient and reliable internal controls over the Project p implementation IN . Record keeping that allows for the disclosure of the Project's transactions and ensures the financial statements comply with the International Public Sector Accounting Standard (IPSAS) 'Financial p Reporting under the Cash Basis of Accounting' issued by the International Federation of Accountants OR (IFAC) and the GEF Grant Agreement No. TF0B6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development funds received under the GEF Grant Agreement No. TF0B6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development on June 23, 2021, was spent with due diligence to cost-effectiveness and economic IN efficiency and only for the intended purposes *Fraud and abuse detection and prevention. The accompanying financial statements for the year ended December 31, 2023, were approved by the Executive Agency management on July 1, 2024: P Vice-chairman RSI "Committee of Forestry and Wildlife of the Ministry of Ecology and Natural Resources E. N. Kutpanbayev p of the Republic of Kazakhstan" Seal Astana, Kazakhstan 3 IB D e -7 727 331 31 34 TOO 'BDO Qazaqstan" B D O -7 727 331 31 35-, nnarl Ka3aXCTaH IWWNbdoqz.com A15H4E3 dTth -7 727 331 31 34 t i Qazaqstan LLP Fax: -7 727 331 31 35 6 GabdUttin Street nfec t e c a tbdoqztcoh n Atmahy, Kazakhstan D o nwtbdoqz.con A 5H4E3 fig INDEPENDENT AUDITOR'S REPORT To the management of the "Kazakhstan Resilient Landscapes Restoration Project" Project funded o under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Opinion We have audited the accompanying financial statements of the "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the Internationa Bank for Reconstruction and Development (the 'Project'), and implemented by RSI Committee of Forestry and Wildlife of the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan" which comprise the statement of cash receipts and disbursements for the year ended December 31, 2023, and the statement of expenditure by components for the year ended December 31, 2023, and notes including the summary of significant accounting policies (the 'financial statements'). U In our opinion: 1., The financial statements fairly present, in all material respects, cash receipts and disbursements p of the Project for the year ended December 31, 2023, in accordance with the International Public Sector Accounting Standard (IPSAS) 'Financial Reporting under the Cash Basis of Accounting' issued by the International Federation of Accountants, as well as in accordance with the requirements for the preparation of financial statements under GEF Grant Agreement No. TFB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development. 2. All external funds have been spent following GEF Grant Agreement No. TF0B6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development, dated June 23, 2021, with due diligence to cost- effectiveness and economic efficiency and only for the intended purposes. 3. All the necessary supporting records and allocated accounts are being maintained in respect of all N Project activities including expenses under Statements of Expenditure (SOE). SOEs for the period correspond with the records. 4. The allocated account is being maintained following the Agreement and the World Bank-related 5. Goods, works and services have been procured following the Agreement and the World Bank- * related guidelines. * oaeap A CTB aoeH' -P -e PDO Qazaqstan, a tinc tinnted by quarant e Basis for Opinion We conducted our audit in accordance wth International Standards on Auditing. Our responsibilities under those standards are further described in Auditors Responsibilities for the Audit of Financial Statements section of our report. We are independent of the Project and RSI "Committee of Forestry and Wildlife of the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan" in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and ethical requirements relevant to our audit of the financial statements in Kazakhstan, 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 U our opinion. Special Considerations - Basis of Accounting We draw attention to Note 2 of these financial statements describing the accounting principles. The financial statements have been prepared to assist the Executive Agency in complying with the World Bank requirements. As a consequence, these financial statements may not be suitable for another purpose. We do not express a modified opinion on this matter. Responsibilities of Management and Those Charged with Governance for the Financial Statements Project management i responsible for the preparation and fair presentation of the financial statements in accordance with the International Public Sector Accounting Standard (IPSAS) 'Financial Reporting under the Cash Basis of Accounting' issued by the International Public Sector Accounting Standards Board (IPSASB) of the IFAC, and in accordance with the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, due to fraud or errors, and to express our opinion. Reasonable assurance is a high level of assurance but it does not guarantee that an audit conducted in accordance with International Standards on Auditing 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 affect the presentation of these financial statements in general. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also: dev Identify and assess the risks of material misstatement of financial statements due to fraud or errors; dlevelop and conduct audit procedures in response to these risks; we obtain audit evidence that is sufficient and appropriate to serve as a basis for expressing our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. pcObtain an understanding of the internal control system that is relevant for the audit to design audit procedures that are appropriate in the circumstances, but not to express 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. 5 Auditor's Responsibilities for the Audit of the Financial Statements (continued) Evaluate the appropriateness of applying the going concern assumption by the management and based on the audit evidence obtained, conclude if there is significant uncertainty related to the events or conditions that could cast significant doubt on the Project's ability to continue as a going concern. If we conclude that such a material uncertainty exists, we must draw attention in our audit report to the appropriate disclosures in the financial statements or, if such disclosures are inappropriate, to modify our opinion. Our findings are based on the audit evidence obtained before our audit report date. However, future events or conditions may result in the Project's ability to continue as a going concern. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance for the Project implementation 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. BDO Qazaqstan LLP State license for audit No. 21012748 issued by the Internal State Audit Committee under the Ministry of Finance of the Republic of Kazakhstan on 19 March 2021 #. R. Rakhimbayev Director D. Babayeva, Auditor Auditor Qualifying Certificate No. 0000303 issued by the Qualifying Commission for Auditors Certification on 23 December 1996 July 1, 2024 6 Gabdutlin Street, Almaty Almaty, Republic of Kazakhstan 6 � _ �� � �� � � � ии� � о�о.сг�о�vг�.о ^rt� ии � �� СС V' �' i оо м гч гч О г� 1� cV N.р � ор ��` "с ,-и� � t� I О 1� о и� О� м�' .-- � О� .� 1� . `�' С С сб Ш О�( � м V��� I�О � I и'� .',.. N.,, N л � О� � о0 гч V' С Г� �''�� о^0 ( 0^0 ,i N'� ол v м cv � о � 0 О N N IN1.Г О .v и N и и �а ш v� О � � м С R v и �� г С Е Е Е li 7 0! � и и 1 д ' Ш � L С Ш Ш � и1 И О t� N � М с0 1� tf'1 '7 � N^.- .- �О И �- О ct �О Г"i С N iл �n �D О N 00 о0 �`D � ,� и .о � г� о г� и.n v гч � м 1� � м ^'i о�" м N.о о г� о ' ' N �v рО д' .Р,. р N �� � VN' � м О О N N � т +-� о v �Г �� ~ Е � а М � О О N Z � р у� > N �� С Ш � � Q1 � v го Q о �� с v � L l7 й : С +., �� � � � ,L,, � С О L `�-- ro И v � и �а с � о �� с �г I � i, с т С _ N а � � У С -о с 1 ;� С .� � О р� �� � (О I U и О +.' L L1 Ш � I� � � 'о^ С � � L1 а Ш � �7 �� _ � Ш �v i-+ Ш � w и� .О го � о � � с г� � ¢, .;° ° � -с о_ � 1� � � -. � �� ' Г о о т N i � v ,,, о са � � � о У v � � � ` � � � L1 � с с � iШ С >7 U и V � ' ь+ I 1] i С > г6 W1 га � Ф n' Ш v., � '� Z и Й � 'D С �� � N � � у� б. О'��,. v N�' ОЛ у, R3 С �� J L а\1 �-- � � �: � ч ри ... а У � С и� а [ .., ._, �v � гд v о �' � о о о о L v `�" ��� v � о oj � � � Ш � � � С С � и � С � � � ~ _ _,,,. � с О � � � и и- v v � 3 � .и Ш �_ 'v � �. � ❑' Cl а '� � С "' Й Ш О а V w '� >+ а` _ С �� А�� о д�� оп .-`"� �^ С�. 1] ,у Ш v � 1] С Ш�' Ш � с L i; �,' � 1] N .С о'" '� � аз .С О С га +-� ,� t� ... С � и О а г0 а in � v J. ы'-, Е и i а О � �� а..+ и О й� � о о,п г'го ш � � '^ �> а к � й�, о о .D а` Ё'� а -С � Q �С а'Е ъ й�' о с=о е� - а �! Q¢ � У s р� О �' n`�i � '�р^ й aS°.�р^с сУ.д о is `� ''� о= � vus ш г� +-� � ш ш о � о о� С о^ с с�� а г � ,..� •� �Z а z� f-avz3и�зo`.: t- �-п.-_ Q ш>s о г � ,, ,н гv ^ г: ;л • и,.� м� г� rn и �о й г� н и и � .. ар � .. 0 � и г� ю"., о� ���. гч о и р. со N о и Г- о� , , . . i.л �� п� � и��, �n rn n N rn и п� � ор �о . � го ``' �.о .i о о о� м•-- о м и � � х м � и а� j д N г� tV 'О ,.И, ++ N ��� .. С С �6 � � ',,,,. ,.. Ф Ш 0 � и .., .. о °' •`° �,'� � � Т � У Е v , го > Ш и ° N�D N и ,,,,',.. и,.� N�б ' О� h М и� � N М � � N и'? й� � �,,,�,�� й� �О � й м й с0 � о0 г Г � � м v � С N � ш г� О '',..�,.. р rn р '-' � �+ � р ',.......... N , и N И � � < L �-' О оо N м'�� � о� h. N N О� � О м� рр С О N О О О О� N � �о �� О� и О N N р. N � � � � о О м h V' и N�D � О� р О� О�О �О � ор Ш R м е0 О.О О 1� �j м 1� V ^ N 1� �,j 3 у� отоиоо�,о м�имг:i,р М �л и оо > д м f� о0 д' О � � � � м f� � � гV � Е v о т � о�п V � 0 с v ц- Ш � ♦- � т О О О N и n .О О V о о�О �О М О р, О О О О и и V О h N � о`о �О �' О О О О О 1� �О м h О О рр V О N Q е- М Z j F-- N � W n О V' � ом � м� Г N� М О� � с� Z р �"i �г' р N М vo ZN N �� ао Q о 0 м � � U I С V � v- о• V.р 1� м( о� и и м� и и г.i м.О � i т.L� О и г✓ ги гv rn м и оо и р �b N N f� оо N l7 й ш Е и м v v о и V� р, �n � V' rn рр rn и�' V' М r � с � Ш ъ .л м v о г� м.о м � г� rv г� �,р '-' Ш о = V � д °.^- v v м^'f � v и м N'^ м � С' °° � ��. � и и- G1 Й, >.р м и� ср м г� ^ Е ш� o�v' � Ео N °' L о '? �� ��`� 1Г с v � �"- а � v� о � И QJ `1 ш GJ Й L% и � т L� г�0 � � V оо Г� и N V v � и м rn и о� v 1� � и � д �� О � �^ rt N гv и n м rn .д р, v г� rn ш м о � � � и Q� rt3 >+ р V V I� и.n r, .- о о �у � и м г� м� У С 'С7 с ~ д1 Orn м К? О 1� и м м гv 1� г.,� � � с.о Ш у м � � с��� � � � N оО О О р� � � � � ` N ^. _и о �` Н LL � I ..,,,, О .а а Ш .р С Й У � f1 д N +� ! � О � ^ а-� Е Ш v � -р � Е +L-+ n, � � гсв U О д О С ` N N И Q1 � +° °�` i -о i � � � а:- У t � � О � � о L о i J �I Г С � `о гNа о с с � а� � �- �а I.� у- а v w а � о � � г��6 �1 � о: о �о о � � о уΡ � о И^ � v о }' 7 г6 Ог1 а� i� LL°.с Е ш -oz °' га С °�' $ v� � Е �-о с Й v N Ш �� п7 б1 с � � с ОП уΡ, гй С <б N а-�'+ р. о С �� � й Ол11 Ш L 1� С г6 го +� ''' ° С" ш с� й F ш � v о а с � ��'О и и_ �� и � и и й U � oU И v И О О�•� � 17 г0 .� ь' О'и � � 'п � О ц- � •N � � и� ? а; � � i й и � v, � р Т о � � � 011 С 0) 'О Q1 ,чи, .-� Ш и � �- �С Ш И 7 О с п5 � ...., �� � с но Ш!^ с о Ш �- С г6 +-v� +; О+� .._ � О г'+-' i�и �J � `ti `^ �' и .о л-и+ ±� и и LЧ � г6 �.''' и �7 L � L °Jo' � а�с+ й � iI I v � +�_-' � � I � +с-' Й � �� ` � а L � � � � с 1 ш и ��� о �� � � о �° У го�и�I iN � Й °�и �� м Й�� У � Q У и v N 7 LL �� С С д О; а.ъ+ '''' U С С О N I� � С С N С � ы �- L � гi7 +-+ W�р рр О о о� О i О� гр � О О о d�i О rG О О д rtS О О д Z й' '�"' '" Уг t�a �vz3�n�,F-,a.��.�г�oi�avzom i-� Q ш>� о г � � "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Notes to the financial statements NOTES TO THE FINANCIAL STATEMENTS for the years ended December 31, 2023 (all amounts are in US$) 1 . PROJECT BACKGROUND 1.1. Project GEF Grant Agreement No. TFOB6007 (the 'Agreement') between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan (the 'Recipient') and the International Bank for Reconstruction and Development (the 'World Bank') acting as an Implementing Agency of the Global Environment Facility (GEF) was signed on June 23, 2021 (the 'Project Date'). Under the Agreement, the Global Environment Facility provides a grant for 4,344,036 (four million three hundred forty-four thousand and thirty-six) US dollars (the 'Grant') to implement the "Kazakhstan Resilient Landscapes Restoration Project" Project (the 'Project') by the Executive Agency - RSI "Committee of Forestry and Wildlife of the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan" (the 'Executive Agency'). Grant is withdrawn in US dollars and paid out in US dollars and Kazakhstan tenges. The Withdrawal Period and the Closing Date are September 30, 2025. 1.2. Project Objectives and Description The objective of the Project is to pilot agroforestry practices using a community-centered approach and to build the Recipient's capacity for landscape management and restoration. The Project consists of the following parts: Part 1: Piloting community centered approach on dryland agroforestry and landscape restoration Provision of Sub-Grants to Eligible Beneficiaries in KyzyLorda and Zhambyl obLasts to carry out Sub- AN projects related to landscape restoration, including inter alia, through: (a) piloting of community-based afforestation methods by using advanced planting technologies; (b) piloting of a farmer-based approach in the establishment of agroforestry demonstration plots of fast-growing fruit trees and tree plantations for combining forestry with fruit production, 144 horticulture, and livestock production; (c) construction of a nursery; and (d) purchase of technical and protective equipment. Ila Part 2: Capacity building of the Forestry and Wildlife Committee for integrated landscape management Provision of support of to strengthen of the Committee of Forestry and Wildlife afforestation capacity to for a sustainable and productive sector and integrated landscape management, through inter alia: (a) carrying out technical studies, consultations and related good agroforestry practice surveus; (b) mapping of dry Aral Seabed for continued long-term afforestation; to (c) establishing a depository of forest species' seeds for scientific and research purposes; (d) carrying out an inventory of unaccounted forests to understand and clarify the magnitude of land degradation problems; (e) preparing forestry management plans for newly accounted forests; and (f) carrying out regional cooperation, exchange of experience and dissemination of best practices activities. Part 3: Project coordination and monitoring Provision of support - througt goods, consulting services, non-consuffing services, operating costs and training - to PIU for Project management and implementation, including Project procurement, financial management, compliance with environmental and social standards, communications and outreach, monitoring and reporting; and development and distribution of basic communication materials related to the Project. 9 "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Notes to the financial statements 1. PROJECT BACKGROUND (continued) 1.3. Project Implementation The Ministry of Ecology and Natural Resources of the Republic of Kazakhstan (the "Recipient") ensures the overaLl coordination and control of the Project activities throughout the entire period of the Project implementation. The Recipient ensures the Project implementation through the Executive Agency in line with the provisions of the management compliant with the World Bank requirements, which shall include, inter alia, the following: a) Implementation mechanisms, procurement procedures and financial management for the Project; b) Operating and administrative procedures for the Project; c) Criteria and procedural arrangements for the selection, evaluation, implementation, and supervision of subprojects; d) Procedural requirements for the implementation of Environmental Management Plans for the subprojects under the Environmental Management Framework document; e) Project monitoring, evaluation, management and reporting mechanisms, and f) Operating procedures and functions of the Project Management Committee. The Recipient's eligible Project expenses are divided into the following categories: * Category 1: Goods, works, non-consulting services, consulting services, operating costs, and Training under Part 1 (a), 1(c), 1(d), Part 2 and Part 3 of the Project; * Category 2: Goods, works, non-consulting services, consulting services, financed through Subgrants under Part 1(b) of the Project. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1. Basis of preparation and presentation The financial statements have been prepared under the International Public Sector Accounting Standard (IPSAS) 'Financial Reporting under the Cash Basis of Accounting' issued by the International Public Sector Accounting Standards Boards of the International Federation of Accountants, and under the provision of GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development. Accounting policies set out below have been applied consistently over the reporting periods presented in these financial statements. 2.2. Cash basis of accounting The financial statements are presented under the cash basis of accounting which means that the transactions and events are recognized only at the Project funds' receipts or disbursements. 2.3. Presentation currency These financial statements are presented in US dollars (the 'USD'). Transactions in foreign currencies are translated to the presentation currency at the exchange rates prevailing at the reconversion dates. Exchange differences arising from the restatement of transactions from the other currencies to US dollars are accounted for as a net change in exchange rates. The official exchange rate of the US dollar as of December 31, 2023, is 454.56 tenge (as of December 31, 2022: 462.65 tenge). 2.4. Budget The budget for expenditures is plannei :y :e Executive Agency based on the procurement plan and signed contracts. *10 "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Notes to the financial statements 3. CASH To carry out operations under the GEF Grant No. TFOB6007 the bank accounts were opened in CenterCredit JSC, Astana: * KZ448562203215135968 in USD; * KZ398562203115135945 in KZT. Cash balances as of December 31, as wet as the transactions of the account for the year ended December 31, 2022, and December 31, 2021, are detailed below: US dollars 2023 2022 Balance on January 1 143,515 7,983 RECEIPTS Replenishment of account 1,080,647 1,758,098 1,080,647 1,758,098 EXPENDITURES Project expenditures 1,101,402 1,622,710 Net foreign exchange loss/(gains) (21) (144) 1,101,381 1,622,566 Balance on December 31 122,781 143,515 Including those denominated: In KZT 87 15 In USD 122,695 143,500 4. STATEMENT OF EXPENDITURES (SOE) US dollars Withdrawal Withdrawal Total amount Project expenditures Total Application date applied for category 1 Category 2 14-A 24.03.2023 90,000 230,215 30,831 261,046 15-A 12.04.2023 81,000 - - 16-A 13.04.2023 90,046 - 17-A 09.06.2023 154,000 48,868 243,254 292,121 18-A 30.06.2023 138,122 19-A 25.09.2023 236,356 236,356 - 236,356 20-A 27.11.2023 291,123 217,338 73,786 291,123 Total 1,080,647 732,777 347,871 1,080,647 o11 "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Notes to the financial statements 5. STATEMENT OF FINANCIAL POSITION Statement of financial position discloses assets, liabilities and net assets of the Project as of December 31, 2023, and as of December 31, 2022. US dollars Items Note December 31 December 31 ASSETS22023 2022 ASSETS Cash 312,781 43,515 Total assets 27 143,515 LIABILITIES Payables (31.12.2022, 31,12.2021 12 - the Natonal Bank exchange rate),924 Total liabilities 9,924 12 NET ASSETS 112,857 143,503 Income (accumulated) GEF Grant No. TFOB6007 2,908,745 1,828,098 Total income 2,908,745 1,828,098 Expenses (accumulated) 6 Consultants' services 878,089 594,370 Non-consulting services 232,730 50,687 Works** 453,950 307,308 Subgrants 420,527 Goods 740,908 693,253 Operating costs 69,374 38,910 Bank services 472 208 Exchange rate difference (162) (141) Other expenses . Total expenses 2,795,888 1,684,595 Total net assets 112,857 143,503 ** Works include accounts payable as of December 31, 2023 6. PROJECT EXPENDITURES a. Expenditures under the Project funded by the GEF Grant Agreement for 2023 US dollars Expenditure 2023 Cumulative as of December 31, 2023 Category 1: Goods, works, non-consulting services, consulting services, operating costs, and Training 680,875 2,365,599 under Part 1 (a), 1(c), 1(d), Part 2 and Part 3 of the Project Category 2: Goods, works, non-consulting services, consulting services, financed through Subgrants under 420,527 420,527 Part 1(b) of the Project TOTAL1,101,402 2,786,126 12 "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Notes to the financial statements b. Project's budget for expenditure execution for 2023 US dollars Expenditure Cumulative as of Budget for Budget December 31, 2023 expenditure execution Category 1: Goods, works, non-consulting services, consuLting services, operating costs, and Training under Part 1 (a), 1(c), 1(d), Part 2 and Part 3 of 2,365,599 2,581,119 92% the Project Category 2: Goods, works, non-consulting services, 420,527 500,702 84% consulting services, financed through Subgrants under Part 1(b) of the Project TOTAL3,081,821 90% 7. PROJECT FINANCING US dollars 2023 Cumulative as of December 31 2023 Direct payments Payments from allocated accounts 1,080,647 2,908,745 TOTAL _1,080,647 2,908,745 Total GEF Grant No. TFOB6007 budget 4,344,036 Used under the GEF Grant No. TFOB6007 as of December 31, 2022 67% Non-used part of the GEF Grant No. TF0B60071,329 as of December 31, 2023 8. PROPERTY, PLANT AND EQUIPMENT, CONSTRUCTION IN PROGRESS AND INTANGIBLE ASSETS Long-term purchased assets are presented below: US dollars Item 2023 Cumulative as of December 31, 2023 Property, plant and equipment -12,135 Construction in progress 114,596 173,871 Intangible assets 240,056 TOTAL114,596 426,062 9. EVENTS AFTER THE REPORTING PERIOD There have been no events between the reporting period date and the date of approval of these financial statements that would have affected these financial statements. 10. LITIGATIONS There are no pending litigations brought by the Executive Agency against the third parties or entities or by the third parties or entities against the Executive Agency as of the date of approvaL of the financial statements. ,A 13 "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Notes to the financial statements 11. FINANCIAL STATEMENTS ISSUE DATE These financial statements have been authorised for issue on July 1, 2024, by the Vice-Chairman of the RSI "Committee of Forestry and Wildlife of the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan". U1 "Kazakhstan Resilient Landscapes Restoration Project" Project funded under the GEF Grant Agreement No. TFOB6007 between the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan and the International Bank for Reconstruction and Development Notes to the financial statements Annexe 1. Reconciliation between the amounts submitted by the Executive Agency and those disbursed by the World Bank US dollars Withdrawal Withdrawal Executive World Deviation Application date Agency Bank 14-A 24.03.2023 90,000 90,000 15-A 12.04.2023 81,000 81,000 16-A 13.04.2023 90,046 90,046 17-A 09.06.2023 154,000 154,000 18-A 30.06.2023 138,122 138,121 19-A 25.09.2023 236,356 236,356 20-A 27.11.2023 291,123 291,123 TOTAL 1,080,647 1,080,647 I I I I I I I I I I