~ pasture and livestock management improvement...

~ PASTURE AND LIVESTOCK MANAGEMENT IMPROVEMENT PROJECT

IDA CREDIT NUMBER 5521-KG IDA GRANT NUMBER H976-KG

IMPLEMENTED BY

AGRICULTURE PROJECTS IMPLEMENTATION UNIT (APIU) OF THE MINISTRY OF AGRICULTURE, FOOD INDUSTRY AND MELIORATION

OF THE KYRGYZ REPUBLIC AND

COMMUNITY DEVELOPMENT AND INVESTMENT AGENCY (ARIS)

SPECIAL PURPOSE FINANCIAL STATEMENTS

AND

INDEPENDENT AUDITOR'S REPORT

For the period from 27 August 2015 to 31 December 2016

BISHKEK April 2017

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.. PASTURE AND LIVESTOCK MANAGEMENT IMPROVEMENT PROJECT

IDA CREDIT NUMBER 5521-KG IDA GRANT NUMBER H976-KG

TABLE OF CONTENTS

STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION

Page

AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS 3

INDEPENDENT AUDITOR' S REPORT 4-5

SPECIAL PURPOSE FINANCIAL STATEMENTS For the period from 27 August 2015 to 31December2016:

Statement of cash receipts and payments 6-7

Statement of expenditures per components 8

Notes to the special purpose financial statements 9-20

ANNEX 1. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE APIU AND ARIS AND DISBURSED BY THE WORLD BANK 21

2

l

STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM 27 AUGUST 2015 TO 31DECEMBER2016

The management of the Agriculture Projects Implementation Unit ("APIU") of the Ministry of Agriculture, Food Industry and Melioration of the Kyrgyz Republic is responsible for the preparation of the special purpose financial statements of "Pasture and Livestock Management Improvement Project" (hereafter: the Project) financed by Financing Agreement IDA Credit Number 5521-KG and IDA Grant Number H976-KG that present fairly the Project' s cash receipts and payments, and expenditures per components for the period from 27 August 2015 to 31 December 2016, in accordance with the International Public Sector Accounting Standard "Financial Reporting under the Cash Basis of Accounting" (IPSASCash Basis) issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC) and the Financial Management Manual for World Bank Financed Investment Operations (WB Guidelines).

In preparing the special purpose financial statements, APIU' s management is responsible for: • Properly selecting and applying accounting policies;

• Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• Providing additional required disclosures for the period from 27 August 2015 to 31 December 2016.

APIU' s Management is also responsible for: • Designing, implementing and maintaining an effective and sound system of internal

controls, throughout the Project;

• Maintaining adequate accounting records that are sufficient to show and explain the Project' s transactions, and which enable them to ensure that the special purpose financial statements of the Project comply with IPSAS - Cash Basis and the WB Guidelines;

• Taking such steps that are reasonably available to them to safeguard the assets of the Project and to affirm that funds received have been used in accordance with the Financing Agreement IDA Credit Number 5521-KG and IDA Grant Number H976-KG dated 10 December 2014, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; and

• Preventing and detecting fraud and other errors.

' The special purpose financial statements for the period from 27 August 2015 to 31 December 2016 were authorized for issue on 4 April 2017 by the APIU's Management.

On behalf of the APIU' s Management:

~~ Timur Ibragimov

Director Financial Manager

3

"UOU-Ufi~Ll.PS" U<llC

"SOS-AUDIT" LTD

INDEPENDENT AUDITOR'S REPORT

To the management of the Agriculture Projects Implementation Unit of the Ministry of Agriculture, Food Industry and Melioration of the Kyrgyz Republic ("APlU")

Opinion

We have audited the special purpose financial statements of "Pasture and Livestock Management Improvement Project" ("Project") financed by Financing Agreement IDA Credit Number 5521-KG and IDA Grant Number H976-KG dated I 0 December 2014 ("Financing Agreement"), and jointly implemented by the APIU and Community Development and Investment Agency ("ARIS"), which comprise the statement of cash receipts and payments, and the statement of expenditures per components for the period from 27 August 2015 to 31 December 2016, and notes to the special purpose financial statements, including a summary of significant accounting policies.

In our opinion, I. the accompanying financial statements present fairly, in all material respects the sources and

application of funds for the period from 27 August 2015 to 31 December 2016 in accordance with International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting, (IPSAS-Cash Basis);

2. funds have been used in accordance with the conditions of the Financing Agreement between the International Development Association (IDA) and the Kyrgyz Republic, and WB Guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided;

3. supporting documents, records and accounts have been maintained to support claims for reimbursement of expenditures incurred. Expenditures included in the withdrawal applications and ·reimbursed against are eligible for financing under the Finance Agreement; Interim Unaudited Financial Statements (IFSs) issued by APIU during the reporting period are in agreement with the underlying books of account;

4. The Designated account used has been maintained in accordance with the provision of the Financing Agreement, and World Bank related guidelines;

5. Goods and Services financed have been procured in accordance with the Financing Agreement and World Bank related guidelines.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) as issued by International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IF AC). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project, of the APIU and of the ARIS in accordance with the International Ethics Standards Board for Ace,ountants' Code of Ethics for Professional Accountants (!ESBA Code), and we have fulfilled out' other ethical requirements in accordance with IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

=r=i ; J< .b fl ltwu 0037, U. StiqflWUJWU 38/55; 'l tri .' (-t-37410) 20 11 51 ; www. sosaudit.am; tL-ltrnum· [email protected]

38/55 A. Tigranyan, 0037 Yerevan. RA. Te -37~10) 20 11 51 ; www. sosaudit.am; E-mail : [email protected]

"UOU-Ufil'-'1.PS" U"lC

"SOS-AUDIT" LTD

Responsibilities of the Management for the Financial Statements

Management of the APIU is responsible for the preparation and fair presentation of the special purpose financial statements in accordance with IPSAS-Cash Basis issued by the International Public Sector Accounting Standards Board (IPSASB) of the IFAC and Financial Management Manual for World Bank Financed Investment Operations (" WB Guidelines"), and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility for the Audit of the Special Purpose Financial Statements

Our objectives are to obtain reasonable assurance about whether the special purpose 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 high level of assurance, but is not a guaranty that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements arise from fraud and 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 special purpose financial statements. As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also :

• Identify and assess the risks of material misstatement of the special purpose 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 internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by miinagement.

• Evaluate the overall presentation, structure and content of the special purpose financi al statements, · including the disclosures, and whether the special purpose financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

"SOS-Audit" LLC 4 April 2017

=Fl; 12.triLLwu 0037, U. S~qriwuiwu 38155: =tbn ." (+37410) 20 11 51 ; www.sosaudit.am; tL-lJlnum· [email protected]

38/55 A. Tigranyan, 0037 Yerevan. RA: e (-37410 20 11 51;www. sosaudit.am; E-mail: [email protected]

Pasture and Livestock Management Improvement Project IDA Credit Number 5521-KG IDA Grant Number H976-KG

Statement of cash receipts and payments For the period from 27 August 2015 to 31 December 2016 (Amounts are shown in US dollars)

Note

TOTAL OPENING CASH

Sources of Funds 8 IDA Credit Number 5521-KG I DA Grant Number H976-KG

APIU ARIS '

Community contributions

TOTAL FUNDS

Other income (interest accrued) APIU ARIS

Project Expenditures 7 (I) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts I.A(i), (ii), and (iv), Part l.B, Parts 1.C(i)-(iii), Parts IT.A(ii)-(iii), Parts II.B(i) and (iii)-(v), and Part III(i) of the Project

APIU (2) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts I.A(iii), and (v), and Part IIl(ii) of the Project

ARIS (3) Sub-Grants for Part 1.A(v) and Part I.C(iv) of the Project

ARIS (4) Sub-Grants for Part 11.A(i) and Part 11.B(ii) of the Project

TOT AL PROJECT EXPENDITURES

Reporting ~eriod

2,200,996 700,996

1,500,000

2,200,996

25,600 17,576 8,024

324,697 324,697

240,659 240,659

75,258 75,258

640,614

Actual Budget Variance

Cumulative as at Reporting Cumulative as at Reporting Cumulative as at 31.Dec.2016 ~eriod 31.Dec.2016 __p_eriod 31.Dec.2016

2,200,996 700,996

1,500,000

2,200,996

25,600 17,576 8,024

324,697 631,364 631,364 (306,667) (306,667) 324,697 631,364 631,364 (306,667) (306,667)

240,659 384,288 384,288 (143,629) (143,629) 240,659 384,288 384,288 (143,629) (143,629)

75,258 75,505 75,505 (247) (247) 75,258 75,505 75,505 (247) (247)

640,614 1,091,157 1,091,157 (450,543) (450,543)

6


Statement of cash receipts and payments For the period from 27 Augt.1st 2015 to 31 December 2016 (Amounts are shown in US dollars)

Other expenditures

APIU

TOT AL CLOSING CASH

API U

ARIS

Director

4 April 2017

Note

6

~

Reporting period

473

473

1,585,509

393,402

1,192,107

~

Actual Cumulative as at

31.Dec.2016 473

473

1,585,509

393,402

1,192,107

Reporting period

Budget Cumulative as at

31.Dec.2016

<§>~ Timur lbra~ -Financial Manager

The notes on pages 9-2 hese special purpose financial statements.

7

Reporting period

~ ~

Variance

Cumulative as at 31.Dec.2016

~ ~

J ~1 1 ~ r --Pasture and Livestock Management Improvement Project IDA Credit Number 5521-KG IDA Grant Number H976-KG

Statement of expenditures per components For the period from 27 August 2015 to 31 December 2016 (Amounts are shown in US dollars)

Actual Planned

Components

Part 1. Community Based Pasture Management 1.1. Community Based Pasture Management and

Investment APIU ARIS

1.2. Community Based Pasture Management and Investment APIU

1.3. Forestry Enterprise Pasture Management and Investment

Part 2. Community Based Animal Health and Husbandry Services 2.1. Animal Health and Husbandry Services Planning and Investment 2.2. Private Veterinarian Development

APIU

ARIS

Part 3. Project management

APIU ARIS

TOTAL

k Tairov

Reporting l!eriod

314,252

280,941 92,535

188,406

33,311 33,311

69,287

69,287

67,753

1,534

257,075 131,098 125,977

640,614

Cumulative as at Reporting 31.Dec.2016 l!eriod

314,252 565,904

280,941 476,204 92,535 182,300

188,406 293,904

33,311 89,700 33,311 89,700

69,287 166,764

50,000 69,287 116,764

67,753 115,164

1,534 1,600

257,075 358,489 131,098 194,200 125,977 164,289

640,614 1,091,157

Timur lbragimo Financial Manager

8

Cumulative as at 31.Dec.2016

565,904

476,204 182,300 293,904

89,700 89,700

166,764

50,000 116,764

115,164

1,600

358,489 194,200 164,289

1,091,157

Variance Reporting Cumulative as at

l!eriod 31.Dec.2016

(251,652) (251,652)

(195 ,263) (195 ,263) (89,765) (89, 765)

(105,498) (105,498)

(56,389) (56,389) (56,389) (56,389)

(97,477) (97,477)

(50,000) (50,000) (47,477) (47,477)

(47,411) (47,411)

(66) (66)

(101,414) (101,414) (63,102) (63,102) (38,312) (38,312)

(450,543) (450.543


Notes to the special purpose financial statements For the period from 27 August 2015 to 31 December 2016 (Amounts are shown in US dollars)

1. General information

1.1. The Project The Financing Agreement IDA Credit Number 5521-KG and IDA Grant H976-KG was concluded on 10 December 2014 between the Kyrgyz Republic and the International Development Association ("IDA", "WB"), according to which IDA provided financing to the Kyrgyz Republic in the amount of 4,700,000 Special Drawing Rights (SDR) and 3,900,000 SDR, respectively. The Financing Agreement became effective on 27 August 2015.

The financing was provided for the implementation of «Pasture and Livestock Management Improvement Project» (the Project). The payment currency of both IDA Credit Number 5521-KG and IDA Grant H976-KG is United States dollars (USD).

The Closing date of both IDA Credit Number 5521-KG and IDA Grant H976-KG is set 31March2019. The Grace Period for submitting withdrawal application for expenditures incurred before the Closing date is four months following the Closing date: 31July2019.

1.2. The Project objectives The objective of this project is to improve community based pasture and livestock management in the Project Area.

The Project consists of the following parts: Part I: Community-Based Pasture Management Improving community-based pasture management in the Project Area through: Part LA:_ Community-based pasture management and Investment

(i) Public awareness workshops and legal advice to Pasture User Unions ("PUUs"); (ii) Carrying out pasture boundary demarcation and inventory; (iii) Strengthening community-based pasture governance; -(iv) Straightening capacity of PUUs; (v) PUUs Sub-Grants;

Part LB.: Strengthening MoAM Pasture Department, local departments, and the KLPRI (i) Building capacity of the MoAM Pasture Department; (ii) Building capacity of local departments of agrarian development; (iii) Building capacity of the KLPRI.

Part LC. Forestry Enterprise Pasture Management and Investment (i) Providing legal advice and administrative advice, trainings (ii) Carrying out an inventory of land use; (iii) Providing advice for integration of Forestry Enterprise pastures into PUU plans; (iv)PUU Sub-grants;

Part II: Community-Based Animal Health and Husbandry Services Improving animal health and husbandry in the Project Area through. Part II.A. Animal Health and Husbandry Services Planning and Investment

(i) PUU Sub-Grants (ii) Supervising the provision of veterinary services to Pills (iii) Providing specialist advice on national disease control strategies.

Part II.B. Private Veterinarian Development (i) Training private veterinarians; (ii)Provide Private Veterinarians Sub-Grants for veterinary equipment and veterinary medicine; (iii) Strengthening rayon association of private veterinarians (iv) Supporting a Graduate Incentive Program on veterinary medicine; (v)Building capacity of Veterinary Chamber.

9

,,,



Part III: Project Management (i) Supporting APIU (ii)Supporting ARIS

1.3. Project Implementation The Project is implemented jointly by:

./ the Agriculture Projects hnplementation Unit (APIU) under the Ministry of Agriculture, Food Industry and Melioration ("MAFIM") of the Kyrgyz Republic; and

./ the Community Development and Investment Agency (ARIS).

The APIU is the Lead Programme Agency, and takes overall responsibility for Programme implementation, coordination, oversight and reporting to WB and the Government of Kyrgyz Republic, including liaising closely with the ARIS which shall be accountable to APIU.

ARIS is an independent legal entity, and it is registered in the legal organizational form envisaged by the legislation of the Kyrgyz Republic for non-for-profit organizations. The ARIS address is: 102 Bokonbayeva Street, Bishkek, the Kyrgyz Republic, 720040.

The Programme components implementation is allocated to APIU and ARIS as follows:

Activity APIU ARIS Part I: Community-Based Pasture Management

Part I.A:_ Community-based pasture management and Investment x x (i) Public awareness workshops and legal advice to PUUs x x (ii) Carrying out pasture boundary demarcation and inventory; x

(iii) Strengthening community-based pasture governance; x (iv) Straightening capacity of PUUs; x (v) PUUs Sub-Grants; x Part LB.: Strengthening MoAM Pasture Department, local departments, and the KLPRI x

- (i) Building capacity of the Mo AM Pasture Department; x (ii) Building capacity of local departments; x

(iii) Building capacity of the KLPRI. x I Part LC. Forestry Enterprise Pasture Management and Investment x x

(i) Providing legal advice and administrative advice, trainings x (ii) Carrying out an inventory of land use; x (iii) Advice for integration of Forestry Enterprise pastures x (iv) PUU Sub-grants; x

Part II: Community-Based Animal Health and Husbandry Services Part II.A. Animal Health and Husbandry Services Planning and Investment x x (i) PUU Sub-Grants x (ii) Supervising the provision of veterinary services to Pills x (iii) Providing specialist advice on national disease control. x Part 11.B. Private Veterinarian Development x x (i) Training private veterinarians; x (ii) Proviqe Private Veterinarians Sub-Grants; x (iii) Strengthening rayon association of private veterinarians x (iv)- Supporting a Graduate Incentive Program x

Part III: Project Management (i) Supporting APIU x (ii) Supporting ARIS x

10

-JL-lLn J-~:J



1.4. The Project Budget

The Projecf is financed by: • IDA Credit Number 5521-KG • IDA Grant H976-KG, • Community contributions (in-cash).

'

•

Category IDA Credit Number

5521-KG USD

SDR equivalent (a)

( 1) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts 1.A(i), (ii), and (iv), Part LB, Parts 1.C(i)-(iii), Parts 11.A(ii)-(iii), Parts 11.B(i) and (iii)-(v), and Part III(i) of the Project 1,540,000 2,070,268 (2) Goods, works, non-consulting services, consultants ' services, Training, and Incremental Operating Costs for Parts 1.A(iii), and (v), and Part IIl(ii) of the Project 1,230,000 1,653,526 (3) Sub-Grants for Part l.A(v) and Part 1.C(iv) of the Project 2,440,000 3,280,165 (4) Sub-Grants for Part 11.A(i) and Part 11.B(ii) of the Project 190,000 255,423 Total

5,400,000 7,259,382

J

IDAGrant Expenditur

Community e Financing IDA Grant Number contribu- (inclusive

H976-KG tions Total of taxes) USD USD USD SDR equivalent

equivalent equivalent (a) O/o

1,240,000 1,688,054 - 3,758,322 100%

1,010,000 1,373,502 - 3,027,028 100%

1,990,000 2,706,206 299,319 6,285,690 100%

160,000 217,584 - 473,007 100%

4,400,000 5,985,346 299,319 13,544,047

(a) The budget USD equivalents for IDA Credit Number 5521-KG and IDA Grant H976-KG, with underling currency of SDR, is calculated based on cumulative funds received in USD plus, if any, USD equivalent of undisbursed funds in SDR as at reporting date. SDR/USD rate as at 31.12.2016 is set at 1.34433.

11



2. Summary of significant accounting policies

2.1. Preparation and presentation of financial statements

The special purpose financial statements are prepared in accordance with the International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting (IPSAS-Cash Basis), issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IF AC), and presented in accordance with Financial Management Manual for World Bank Financed .investment Operations.

The principal accounting policies applied in the preparation of these special purpose financial statements are set out below. These policies have been consistently applied to all the periods presented.

2.2 Cash basis of accounting

Project financing is recognised as a source of project funds when the cash is received. Project expenditures are recognised as a use of project funds when the payments are made.

2.3 Reporting currency

The reporting currency of these special purpose financial statements is United States dollars (USD). The cofinancing received and expenditures made in local currency, Kyrgyz Som (KGS), are translated into USD based at the exchange rate prevailing at the date of the transaction as issued by the OJSC "Commercial Bank Kyrgyzstan" ("CBK").

The exchange rate defined by the KICB is as follows: 31December2016: USD 1=69.00 KGS.

2.4. Taxes

The taxes are paid in accordance with the tax regulation of the Kyrgyz Republic.

2.5. Budget

Expenditure budget is created based on actual accumulated expenditures for the last period plus the updated procurement plans for the Reporting year.

12



3. Summary of Summary Reports and SOEs

3.1.IDA Credit Number 5521-KG

3.1.1. APIU

During the reporting period, there were no Summary Reports or SOEs submitted by the APID to WB regarding IDA Credit Number 5521-KG.

3.1.2. ARIS

During the reporting period, there were no Summary Reports or SO Es submitted by the ARIS to WB regarding IDA Credit Number 5521-KG.

3.2. IDA Grant Number H976-KG

3.2.1. APIU

Payment categories

Withdrawal Withdrawal (I) Goods, works, non-consulting services,

consultants' services, Training, and Incremental Total application application Operating Costs for Parts I.A(i), (ii), and (iv), No value date Part I.B, Parts I.C(i)-(iii), Parts 11.A(ii)-(iii), Parts

11.B(i) and (iii)-(v), and Part IIl(i) of the Project

APIU/G-3 26.Jul.20 l 6 78,032.67 78,032.67

APIU/G-4 21.Dec.2016 172,963.76 172,963 .76

Total 250,996.43 250,996.43

3.2.2. ARIS

During the reporting period, there were no Summary Reports or SOEs submitted by the ARIS to WB regarding IDA Grant Number H976-KG.

13



4. Statement of Designated Accounts

4.1. APIU

Financing Agreement

Bank account number

Bank

Bank location

Account currency

1. Opening balance as at 27.08.2015 2. Add: opening discrepancy 3. WB advance/replenishment 4. Less: Refund to WB from DA 5. Present outstanding amount advanced to DA

6. DA closing balance as at 31.12.2016 7. Add: Amount of eligible expenditures paid 8. Less: interest earned (if credited to DA) -

9. Total advance accounted for

10. Closing discrepancy (5)-(9)

IDA Credit Number 5521-KG 1030120800007229

IDA Grant Number H976-KG 1030120800007128

OJSC "Commercial Bank Kyrgyzstan" Togolok Moldo Str. 54a, Bishkek

USD USD

IDA Credit Number 5521-KG

IDA Grant Number

H976-KG Total For the period from 27 Aug 2015 to 31 Dec 2016

USD USD USD

700,996 700,996

700,996 700,996

376,300 376,300

324,696 324,696

700,996 700,996

14



4.2. ARIS

Financing Agreement IDA Credit Number 5521-KG 1030120800007835

IDA Grant Number H976-KG 1030120800007532 Bank account number

Bank

Bank location

Account currency

OJSC "Commercial Bank Kyrgyzstan" Togolok Moldo Str. 54a, Bishkek

1. Opening balance as at 27.08.2015 2. Add: opening discrepancy 3. WB advance/replenishment 4. Less: Refund to WB from DA 5. Present outstanding amount advanced to DA

6. DA closing balance as at 31.12.2016 7. Add: Amount of eligible expenditures paid 8. Less: interest earned (if credited to DA) _

9. Total ·advance accounted for

10. Closing discrepancy (5)-(9)

USD USD

IDA Credit Number 5521-KG

IDA Grant Number

H976-KG Total For the period from 27 Aug 2015 to 31Dec2016

USD USD USD

1,500,000 1,500,000

1,500,000 1,500,000

1,184,083 1,184,083

315,917 315,917

1,500,000 1,500,000

15



5. Statement of Financial Position

The Statement of Financial Position discloses assets, liabilities and net assets of the Project as at reporting date. It is prepared in accrual basis that is transactions are recognized when they occur (and not only when cash is received or paid).

ASSETS Cash Prepayments

Total assets

LIABILITIES Payables

Total liabilities

NET ASSETS Cumulative income IDA Credit Number 5521-KG IDA Grant H976-KG Community contribution Other income

Cumulative expenses Project expenses Other expenses

Total net assets

6. Cash

IDA Credit Number 5521-KG Designated Account-APIU Designated Account-ARIS

IDA Grant H976-KG Designated Account -APIU Designated Account-ARIS

Other-Interest account-APIU Interest account-ARIS

Underlying Currency

USD USD

USD

USD USD

Note 31Dec2016

6

USD

1,585,509 63

1,585,572

2,200,996

25,600

2,226,596

640,550 474

641,024 1,585,572

31Dec2016 USD

376,300 1,184,083 1,560,383

17,102 8,024

25,126 1,585,509

(*)All accounts are held at OJSC "Commercial Bank Kyrgyzstan" (Bishkek, Kyrgyz Republic).

16



7. Project Expenditures

7.1.Project expenditure financing per funds

USD Reporting period from 27 Aug 2015 to 31 Dec 2016

IDA Credit IDA Grant Number H976-KG Community Other

Category 5521-KG contribution income Total ( 1) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts l.A(i), (ii), and (iv), Part I.B, Parts l.C(i)-(iii), Parts 11.A(ii)-(iii), Parts Il.B(i) and (iii)-(v), and Part lII(i) of the Project - 324,697 - - 324,697 (2) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts I.A(iii), and (v), and Part III(ii) of the Project - 240,659 - - 240,659 (3) Sub-Grants for Part 1.A(v) and Part 1.C(iv) of the Project - 75,258 - - 75,258 (4) Sub-Grants for Part 11.A(i) and Part 11.B(ii) of the Project - - - - -

Total - 640,614 - - 640,614

USD Cumulative as at 31 Dec 2016

IDA Credit IDA Grant Number H976-KG Community Other

Category 5521-KG contribution income Total (I) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating .Costs for Parts I.A(i), (ii), and (iv), Part I.B, Parts I.C(i)-(iii), Parts 11.A(ii)-(iii), Parts 11.B(i) and (iii)-(v), and Part IIl(i) of the Project - 324,697 - - 324,697 (2) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts l.A(iii), and (v), and Part IIl(ii) of the Proiect - 240,659 - - 240,659 (3) Sub-Grants for Part 1.A(v) and Part 1.C(iv) of the Project - 75,258 - - 75,258 (4) Sub-Grants for Part Il.A(i) and Part 11.B(ii) of the Project - - - - -

Total - 640,614 - - 640,614

17



7.2. Project expenditure budget execution

Cumulative Expenditures

as at 31 Dec 2016 Category USD (1) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts I.A(i), (ii), and (iv), Part I.B, Parts I.C(i)-(iii), Parts 11.A(ii)-(iii), Parts 11.B(i) and (iii)-(v), and Part IIl(i) of the Project 324,697 (2) Goods, works, non-consulting services, consultants' services, Training, and Incremental Operating Costs for Parts I.A(iii), and (v), and Part III(ii) of the Project 240,659 (3) Sub-Grants for Part I.A(v) and Part I.C(iv) of the Project 75,258 (4) Sub-Grants for Part II.A(i) and Part 11.B(ii) of the Project -

Total 640,614

7.3. Project expenditure breakdown per nature of expenditures

Cumulative Expenditures

as at 31 Dec 2016 Sub-Cate2ory USD Goods 19,566 Works -Non-consulting services -Consultants' services 251,491 Training 36,578 Sub-grants 75,258 Incremental operating costs 257~721

Total 640,614

18

Total budget Execution USD O/o

3,758,322 9%

3,027,028 8%

6,285,690 1%

473,007 -

13,544,047 5%

I I

I

Pasture and Livestock Management Improvement Project IDA Credit Number 5521-KG !DA Grant Number H976-KG


8. Financing

8.1.IDA Credit Number 5521-KG

Advances/ (advance recovery)

Direct Payments SOE and Summary Report

Special Commitment

Total

Total financing budget

Percentage of finance provided as at 31 Dec 2016


Advances/ (advance recovery)

Direct Payments SOE and Summary Report

Special Commitment

Total



8.3. Community Contribution

In-cash

Total



19

Reporting Cumulative as period at 31 Dec 2016

USD USD

7,259,382

0%

Reporting Cumulative as period at 31 Dec 2016

USD USD

1,950,000 1,950,000

250,996 250,996

2,200,996 2,200,996

5,985,346

37%

Reporting Cumulative as year at 31 Dec 2016 USD USD

299,319

0%



9. Schedule of Fixed Assets

The schedule of fixed assets procured and received by APill and ARIS for the Project implementation is follows:

Property and equipment Reporting period

APIU MAFIM of KR (a) ARIS PD (b) Computer and office appliance - 16,652 - 2,914

Total - 16,652 - 2,914

Property and equipment Cumulative as at 31December2016

APIU MAFIMofKR ARIS PD Computers and office - 16,652 - 2,914 aooliance

Total - 16,652 - 2,914

(a) MAFIM of KR-Ministry of Agriculture, Food Industry and Melioration of Kyrgyz Republic. (b) PD - Pasture Department.

10. Event after reporting date

ARIS


Total

19,566

19,566

Total

19,566

19,566

The application N 4A in the total amount of 339,674 USD, that includes expenditures relating to the reporting period in the amount of 315,917 USD was submitted by the ARIS to WB on 26 January 2017 and were approved on 16 February 2017.

11. Litigations

There are no pending litigations related to the Project as at reporting date and as at approval date of these financial statements.

20


ANNEX 1. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE APIU AND ARIS AND DISBURSED BY THE WORLD BANK For the period from 27 August 2015 to 31 December 2016 (Amounts are shown in US dollars)

A. IDA Credit Number 5521-KG

A.1. APIU

During the reporting period there were no applications submitted by the APill to WB related to IDA Credit Number 5521-KG.

A.2.ARIS

During the reporting period there were no applications submitted by the ARIS to WB related to IDA Credit Number 5521-KG.

B. IDA Grant Number H976-KG

B.1. APIU

Expenditure Category Appl. APIU WB Difference

APIU/G-1 250,000.00 250,000.00 -Advance/(recovery) APIU/G-2 200,000.00 200,000.00 -

450,000.00 450,000.00

(1) Goods, works, non-consulting services, consultants' APIU/G-3 78,032.67 78,032.67 -services, Training, and Incremental Operating Costs for

APIU/G-4 Parts I.A(i), (ii), and (iv), Part LB, Parts I.C(i)-(iii), 172,963.76 172,963.76 -Parts 11.A(ii)-(iii), Parts II.B(i) and (iii)-(v), and Part IIl(i) of the Project 250,996.43 250,996.43

Total 700,996.43 700,996.43

-B.2.ARIS

Expenditure Category Appl. ARIS WB Difference

IA 250,000 250,000 -' 2A 750,000 750,000 -

Advance/( recovery) 3A 500,000 500,000 -

1,500,000 1,500,000

To.al 1,500,000 1,500,000

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~ pasture and livestock management improvement...

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