“Public Finance Management Modernization Project II” Grant No. TF0A1735, Grant No. D055-TJ, Credit No. 5631-TJ The project financial statements for the year ended December 31, 2018 and independent auditors’ report “PUBLIC FINANCE MANAGEMENT MODERNIZATION PROJECT II” GRANT NO. TF0A1735, GRANT NO. D055-TJ, CREDIT NO. 5631-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 2 INDEPENDENT AUDITORS’ REPORT 3-4 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018: Summary of funds received and expenditures paid 5 Summary of expenditures paid by project components 6 Notes to the project financial statements 7-14 STATEMENT оF MANAGEMENT,S RESPoNSIBIL|TIES FоR тнЕ PREPARATIoN AND APPROVAL ОF ТНЕ PROJECT FINANCIAL STATEMENTS FOR ТНЕ YEAR ENDED DEGEMBER 31, 2018 The following statement, which should Ье rеаd in conjunction with the independent auditors' гesponsibilities is made with а view to distinguish the гespective гesponsibilities of management and those of the independent auditors iп rе|аtiоп to the project financial statements of the Project "Рйliс Fiпапсе Management Моdеrпizаtiоп Project ll", Grапt No. ТFOАl7З5, Grапt No. D055-TJ, Credit No. 56зl-ТJ (Йе ''Рrоjесt''). Management is rеsропsiЬ|е fог the рrераrаtiоп of the project financial statements that рrеsепt fairly, in all material rеsресts, the summary of funds received and expenditures paid and the Sчmmаrу of ехрепditurеs paid Ьу project components fоr the уеаг ended Dесеmьеr 31 2оl в in ассоrdапсе , with lпtеrпаtiопаl public Sесtоr Accounting Stапdаrd "Fiпапсiаl Rерогtiпg Under the Cash Basis of Дссоuпtrпg'' (the ''lРSДS'') issued ьу the lnternational pub]ic Accounting standards Воаrd of the lпtеrпаtiопаl Fеdеrаtiоп of дссоuпtапis and the Wогld Bank's Fiпапсiаl Management Sector Воаrd's "Guidelines: Annual Financial iерогtiпg and Дuditing fоr Wоrld Bank Fiпапсеd Activities" (the "WB Guidelines''). ln рrераriпg the project financial statements, management is rеsропsiьlе fоr: . Se|ecting suitable accounting policies and applying them consistently; . making judgments and estimates that аrе rеаsопаьlе and prudent; ' stating whether lPSAS and WB Guidelines have Ьееп fol|owed, subject to апу mаtегiаl dерагturеs disclosed and explained in the project financial statements; and , рrерагiпg the project financial statements оп а going сопсеrп basis, unless it is iпаррrорriаtе to ргеsumе that the project wi|l continue its activity fоr the fоrеsееаьlе future. Management is also responsible fоr: , designing, implementing and maintaining effective and sound system of iпtегпаl сопtгоl and fог revealing гisks in system of iпtеrпаl сопtrоl; , maintaining рrореr accounting rесоrds that disclose, with rеаsопаьlе ассurасу at any time, the financial position of the project, and which епаьlе them to епsчrе that the project tiпапъiаl statements of the Project comply with lPSAS and WB Guidelines; , compliance with laws and regulations of the Republic of Tajikistan, accounting system of the Рrоjесt and the rеquirеmепts of the Wоrld Bank; ' о taking such steps aS аrе rеаsопаЬlу available to them to safeguard the assets of the рrоjесt; and detecting and preventing frачd and other irrеgчlаritiеs. The project financial s_tatements for the уеаr ended Dесеmьеr з1, 2оlв wеrе approved and authorized fоr issue оп Мау 24 , 20,1 9 Ьу the management of the Рrоjесt. Оп behalf of the Management Executive Director of public Fiпапсе Fiпапсе Management Consultant Management Modernization Project ll Мау 24,2019 Мау 24, 2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan 65 Stefan cel Mare şi Sfânt Blvd 5th Floor, Office 507 2001 Chisinau Moldova T: +373 22 233003 F: +373 22 234044 info@bakertilly.md www.bakertilly.md INDEPENDENT AUDITORS’ REPORT To the management of the Project “Public Finance Management Modernization Project II” under the Ministry of Finance of the Republic of Tajikistan and the State Committee on Investments and Government Property Management of the Republic of Tajikistan: Report on the project financial statements Opinion [1] We have audited the project financial statements of the Project “Public Finance Management Modernization Project II” (the “Project”), which comprise the summary of funds received and expenditures paid and the summary of expenditures paid by project components for the year ended December 31, 2018 and a summary of significant accounting policies and other explanatory information (the “project financial statements”). [2] In our opinion, the accompanying project financial statements present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the year ended December 31, 2018 in accordance with International Public Sector Accounting Standard “Financial Reporting Under the Cash Basis of Accounting” (the “IPSAS”) issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Basis for opinion [3] We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the project financial statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the project financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter [4] Without qualifying our opinion, we draw attention to Note 2 to the project financial statements, which describes the basis of accounting. These project financial statements were prepared for complying with the appropriate World Bank Guidelines, Grant and Financing agreements requirements. Other matter [5] The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result the project financial statements may not be suitable for another purpose. ADVISORY  ASSURANCE  TAX ICS Baker Tilly Klitou & Partners SRL trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 3 "PUBLlc FlNАNсЕ MANAGEMENT MoDERNlzATloN PRoJEcT ll,, GRANT Nо. тFOА1735, GRANT No. Do55_TJ, cREDlT No.563,t-TJ SUMMARY ОF FUNDS RECE|VED AND EXPENDITURES PAID FoR тнЕ YEAR ENDED DECEMBER 31,2018 (и USdo//aBl Notes Fоr the уеаr Fоr the уеаr cumulative ended ended December31, December31, 201 8 2017 Opening Ьаlапсе 4 1,498,в74 1,414,721 Funds received Grапt No. тFOА1735 t 1,009,515 1 2,810,05,| Grапt No. D055-TJ 640,3,|7 "l50,536 627,529 ^ 2,267,846 Total funds received ,1,649,832 1,778,065 5,о77,897 оthеr income 1122 1122 Total receipts 1,650,954 1,778,065 5,079,019 Project expenses Goods, non-consulting sеrчiсеs, consultants' services and Тrаiпiпg uпdеr Рагt 1.1 (а), (Ь), (с), (d); 1.2 (а), (Ь); '1.3; 3.'t ;3.2; 4.1; 4.3 (с), (d) 1,204,395 1,094,770 2,48з,028 Goods, non-consulting services, consultants' services, Тrаiпiпg and lncremental Ореrаtiпg Costs fоr the following Parts of the Project: 1.1 (е), 1.2 (с), (d),2,4,2, а.3 (а), (Ь);апО S 747,086 599,352 1,397,854 Total project expenses 1,95,1,481 1,694,122 3,880,882 Fоrеigп exchange gain ,l0 Closing balance 4 1,198,147 ___1дýдZ1_ 1 98"l 47 Оп behalf of the Management: -/-) ,/ / ,// l./- lt / /---, / Tolibov М. Щ lmomkulov R. - Executive Director of public Fiпапсе Fiпапсе Management Gonsultant Management Modernization Project ll Мау 24,2019 Мау 24,2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-14fоrm ап integral раrt of the projectfinancia| Statements. The independent audrtors'report is оп pages З-4, "PUBLlc FINАNсЕ MANAGEMENT MoDERNlzATloN PRoJECT !l,, GRANT No. тFOА1735, GRANT No. Do82_TJ, cREDlT No.5702_TJ SUMMARY OF EXPEND|TURES PAID BY PROJECT COMPONENTS FoR тнЕ YEAR ENDED DEGEMBER зl, 2018 (iп USdollars,) year Fоr the Fоr the year Cumulative ended ended December 31, December 31, 2018 2017 рагt 1. public fiпапсе management modernization 592,559 ,l ,178 150 1,871,346 Рагt 2. lmрrочiпg public рrосurеmепt 229,908 42,727 272,635 Рагt 3, Strengthening external audit 391 ,1 54 873 404,124 раrt 4. Managing public administration rеfоrms 475,439 206,581 695,1 08 Раrt 5. Project mапаgеmепt 262,411 265,791 637,669 1,951,481 1,694 122 3,880,882 Оп behalf of the Management: Krф /-, ,/r-- To]ibov М. lmomkulov R. Executive Director of public Fiпапсе Fiпапсе Management Consuttant Management Modernization Project lt Мау 24,2019 Мау 24,2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-14 fоrm ап iпtеgrаl part of the project financial Statements. The independent auditors' rероrt iS оп pages З-4. 6 “PUBLIC FINANCE MANAGEMENT MODERNIZATION PROJECT II” GRANT NO. TF0A1735, GRANT NO. D055-TJ, CREDIT NO. 5631-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (in US dollars) 1. GENERAL INFORMATION According to the Grant Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated February 17, 2016, the World Bank provided a Grant No. TF0A1735 in the amount of 9,770,000 US dollars. According to the Financing Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated February 17, 2016, the World Bank provided a Grant No. D055-TJ in the amount of 3,200,000 Special Drawing Rights (the “SDR”) and Credit No. 5631- TJ in the amount of 4,000,000 SDR. The Financing was provided for the Project “Public Finance Management Modernization Project II” (the “Project”). Project purpose The objective of the Project is to improve the effectiveness, control and accountability of the Republic of Tajikistan (the “Recipient”) public expenditure. The Project comprises the following parts: Part 1. Public finance management modernization; Part 2. Improving public procurement; Part 3. Strengthening external audit; Part 4. Managing public administration reforms; Part 5. Project management. Part 1. Public finance management modernization 1. Design and implementation of the Public Financial Management (the “PFM”) reforms through, inter alia: (a) the provision of technical assistance to the Ministry of Finance (the “MOF) and other relevant Recipient’s entities responsible for budget; (b) the carrying out of activities supporting the Recipient’s change management process to implement PFM reforms, including the carrying out of a consultation process within the Recipient’s public sector to access the status of implementation of said reforms; (c) the design and implementation of Training courses and workshops on, inter alia, expenditure planning, budgeting, treasury, accounting and financial reporting. (d) the carrying out of a feasibility study on the introduction of a certification for PFM specialists, and (e) the provision and installation of Training and video-conferencing equipment, respectively. 2. Strengthening and implementation of the of the Recipient’s Public Financial Management Information System (the “TFMIS”) through, inter alia: (a) the design of modules to support the implementation of commitment controls, cash management, purchase order processing and payroll management; (b) the integration of the TFMIS with order e-government system of the Recipient, including human resources management and procurement system; (c) the provision and installation of equipment (including software) for data recovery, document digitization, system security, expansion of network connectivity and storage in the Information Technology (the “IT”) Center and regional offices, as necessary, including the provision of Training on the use of said equipment; and (d) the design and implementation of a strategy on developing more sophisticated and integrated financial management information system. 3. Strengthening the Recipient and its state-owned enterprises’ accounting and financial reporting practices through, inter alia: (a) the development of: (i) accounting policies; (ii) a model chart of accounts; and (iii) accounting manuals; all for state-owned enterprises; (b) the revision of financial reporting templates; (с) the carrying out of an assessment of the software requirements for processing and analyzing state-owned enterprises’ financial statements; (d) the provision of Training to key accounting and financial reporting personnel of state -owned enterprises and relevant Recipient’s officials on the preparation of interim financial reports and proposed accounting policies developed under Part 1.3 (a) (i) above; (e) the provision of support to selected state-owned enterprises for transitioning to interim financial reports; and (f) the incorporation of IFAC/IASSB’s International Standards of Auditing (the “ISA”) into the Recipient’s regulatory framework, followed by the provision of related Training. 7 Part 2. Improving public procurement 1. Improving the legal and regulatory framework of the Recipient’s public procurement through, inter alia: (a) (i) carrying out of a review of the Public Procurement Law (the “PPL”); and (ii) if a new legal procurement framework is enacted, preparation of regulations; and (b) (i) development of manuals, guidance notes for procurement procedures and contract management; and (ii) the update of Recipient’s standard bidding documents based on the new legislation mentioned in (ii) herein. 2. Strengthening of the institutional capacity of the State Agency for Public Procurement through the provision of support for, inter alia: (a) carrying out a change management process to implement the procurement reforms mentioned in Part 2.1 of the Project, including carrying out of a consultation process with relevant stakeholders to assess the status of implementation of said reforms; (b) developing the State Agency for Public Procurements regulatory function, including developing a public procurement management system and a performance management framework for the Recipient’s public procurement system; (c) improving access to procurement data, including through the publication and dissemination of annual public procurement performance report; and (d) establishing an independent complaints handling mechanism. 3. (a) Development of an e-procurement system through the design and implementation of modules for e- tendering, including framework agreement, contract management, procurement planning, on-line complaint handling mechanism; (b) the development of interfaces between the e-procurement system and the TFMIS budget and treasury modules; and (c) the design and implementation of a communication strategy to raise awareness of said e-procurement system among users in both public and private sectors, including through the provision of technical assistance and Training. Part 3. Strengthening external audit 1. Strengthening the governance and management framework through, inter alia: (a) the review of the existing organization structure, (b) the design and implementation of an audit coverage expansion plan; (c) the provision of Training; (d) the participation in INTOSAI and other international and regional auditing events; and (e) the design and implementation of a communication of a communication strategy. 2. (a) The design and implementation of an audit methodology for compliance and performance of audits (including public procurement audits); (b) the development of enabling tools for audit work planning and management and database; (c) the provision of IT equipment for connectivity, communication, server and backup solutions; and (d) the design and implementation of an audit curriculum which includes technical and soft skills training. Part 4. Managing public administration reforms 1. Strengthening the institutional capacity of the Strategic Planning Unit through, inter alia: (a) the review and formal adoption of its organizational structure, functions, roles and responsibilities; (b) the development of a national strategic planning methodology and other related methodologies and sectorial strategies; (c) the development of strategic plans in key areas of public administration; (d) the carrying out of capacity building activities, including Training; and (e) the design and implementation of a communications strategy. 2. Design and implementation of the e-government roadmap through, inter alia: (a) the strengthening of the regulatory framework for e-government services and methodologies for the selection and prioritization of e-government services; (b) the design and implementation of a communication strategy; and (c) the carrying out of a pilot of selected e-government services (including business process reengineering and software development). 3. Strengthening of the Recipient’s human resource management system through, inter alia: (a) the development and operationalization of the civil service registry system; (b) the development of an automated and integrated performance appraisal system; (c) the development and implementation of a training program on human resources business process and IT system management; and (d) the development of preliminary business process for a recruitment and selection module. 8 Part 5. Project management Strengthening the Recipient’s capacity through the provision of support for the implementation, monitoring and evaluation of the Project, including: (i) the carrying out of the Project audits; (ii) the carrying out of periodic user surveys (including dissemination of the results) to assess the impact of the reforms supported by the Project; and (iii) the carrying out of a communication campaign on the Project activities. Project management The Project is implemented by Administrative Procurement Support Team (the “APST”) under the Ministry of Finance of the Republic of Tajikistan. Grant and Financing Agreements were signed on February 17, 2016 and became effective on May 10, 2016. The closing date of the Project is June 30, 2021. 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the “IPSAS”) “Financial Reporting under the Cash Basis of Accounting” issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Under the cash basis system income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. The Project’s approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. These project financial statements consist of: • Summary of funds received and expenditures paid; • Summary of expenditures paid by project components; • Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The project financial statements prepared under the cash basis provide information on the sources of funds, the purpose of uses of funds, and cash balances at the reporting date. The measurement focus in the project financial statements is balances of cash and changes therein. Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the National Bank of Tajikistan (the “NBT”) on a date of operation. Funds received are translated into US dollars at official exchange rate of Special Drawing Rights (the “SDR”) at the date of funds receipt. All payments made in local currency are translated into US dollars at the official exchange rate defined by the NBT, at the date of transaction. 9 Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in the summary of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Balances of advances paid to employees at the end of the period are also part of closing cash position. Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan and relevant legislation of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by advance, direct payments and reimbursement. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2018 and 2017 comprise: Source of financing Currency December 31, December 31, 2018 2017 Designated account Grant No. TF0A1735 USD 345,731 521,911 Designated account Grant No. D055-TJ USD 852,416 976,763 1,198,147 1,498,674 5. FUNDS RECEIVED The funds received are presented by the following financing methods and sources of financing: For the year For the year Cumulative ended ended December 31, December 31, 2018 2017 Grant No. TF0A1735 Reimbursement 559,456 1,150,536 1,709,992 Direct payment 450,059 - 450,059 Advances - - 650,000 1,009,515 1,150,536 2,810,051 10 For the year For the year Cumulative ended ended December 31, December 31, 2018 2017 Grant No. D055-TJ Reimbursement 640,317 627,529 1,267,846 Advances - - 1,000,000 640,317 627,529 2,267,846 1,649,832 1,778,065 5,077,897 6. PROJECT EXPENSES The Project expenses on major categories are presented in the summary of funds received and expenditures paid. The Project expenses by components are presented in the summary of expenditures paid by project components. Breakdown of the Project expenses by nature and by sources of financing is presented as follows: Goods, non-consulting services, consultants’ services and training under Part 1.1 (a), (b), (c), and (d); 1.2 (a) and (b); 1.3; 3.1; 3.2; 4.1; 4.3 (c) and (d) Grant No. TF A01735 For the year For the year Cumulative ended ended December 31, December 31, 2018 2017 Consultants’ services 778,330 264,282 1,072,831 Payroll and related taxes 238,250 208,119 548,882 Goods 133,877 565,646 699,523 Business trips 33,999 39,844 74,673 Bank charges 8,176 7,788 16,421 Training 8,172 - 54,848 Advertising 1,687 625 3,028 Non-consulting services - 3,212 3,212 Translation services - 1,407 1,407 Web-site design - 873 873 Other 1,904 2,974 7,330 1,204,395 1,094,770 2,483,028 Goods, non-consulting services, consultants’ services, training and incremental operating costs for the following Parts of the Project: 1.1 (e), 1.2 (с) and (d), 2, 4.2, 4.3 (a) and (b), and 5 Grant No. D055-TJ For the year For the year Cumulative ended ended December 31, December 31, 2018 2017 Consultants' services 301,191 191,759 522,239 Goods 257,455 256,177 513,632 Payroll and related taxes 170,957 78,675 269,638 Training 5,623 25,620 33,183 Business trips 3,651 46,507 50,158 Bank charges 2,944 611 3,736 Translation services 1,904 - 1,904 Other 3,361 3 3,364 747,086 599,352 1,397,854 11 7. FINANCIAL POSITION Financial position as at December 31, 2018 and 2017 comprises: December 31, December 31, 2018 2017 ASSETS AND EXPENDITURES Cash and cash equivalents 1,198,147 1,498,674 Cumulative project expenses 3,880,882 1,929,401 TOTAL ASSETS AND EXPENDITURES 5,079,029 3,428,075 FINANCING Funds received 5,077,897 3,428,065 Foreign exchange gain 10 10 Other income 1,122 - TOTAL FINANCING 5,079,029 3,428,075 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the period from for the year ended December 31, 2018 comprise: Sources of Application Value Date Direct Goods, non- Total financing Payments consulting services, consultants’ services, training and incremental operating costs Grant No.TF0A1735 1 February 15, 2018 - 319,579 319,579 2 April 4, 2018 73,903 - 73,903 3 August 8, 2018 - 239,877 239,877 4 August 15, 2018 74,287 - 74,287 5 September 12, 2018 73,903 - 73,903 6 December 17, 2018 129,428 - 129,428 7 December 21, 2018 98,538 - 98,538 450,059 559,456 1,009,515 Grant No. D055-TJ 1 May 22, 2018 - 234,940 234,940 2 November 13, 2018 - 405,377 405,377 - 640,317 640,317 450,059 1,199,773 1,649,832 12 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated account for the year ended December 31, 2018 comprise: Source of financing Grant No. TF A01735 Grant No. D055-TJ Bank National Bank of Republic of National Bank of Republic of Tajikistan Tajikistan Currency US dollars US dollars Bank account 22696840800098 22696840500097 Bank’s location 107A Rudaki ave., Dushanbe, 107A Rudaki ave., Dushanbe, the Republic of Tajikistan the Republic of Tajikistan Total Balance as at January 1, 2018 521,911 976,763 1,498,674 Replenishment of account 559,456 640,317 1,199,773 Total funds received to the designated account 559,456 640,317 1,199,773 Expenses paid 194,183 138,563 332,746 Transfers between accounts 541,453 626,101 1,167,554 Balance as at December 31, 2018 345,731 852,416 1,198,147 10. UNDRAWN FUNDS As at December 31, 2018 undrawn funds are presented as follows: Grant Grant No. TF0A1735 No. D055-TJ in USD in SDR Approved financing amount 9,770,000 3,200,000 Disbursed from the period from June 8, 2012 to December 31, 2018 2,810,051 1,623,675 Undrawn financing amount 6,959,949 1,576,325 Financing received as at December 31, 2017 1,800,536 1,165,105 Disbursed in 2018 1,009,515 458,570 Financing received as at December 31, 2018 2,810,051 1,623,675 11. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. Contract value of obligations valid as at December 31, 2018 was as follows: Counterparty Contract No. Currency Contract Paid up to Remaining value December 31, amount to be 2018 paid Rajesh Kumar PFMMP/IC-31/2017 USD 100,000 2,500 97,500 13 12. LEGAL CASES There were no any legal cases related to the Project. 13. EVENTS AFTER THE REPORTING DATE During 2019 until the date of issue of these project financial statements the World Bank provided financing to the Project as follows: Financing method Application Value date Grant Grant No. TF0A1735 No. D055-TJ Reimbursement 12 January 17, 2019 314,420 - Reimbursement 6 April 17, 2019 - 462,099 314,420 462,099 As at the date of issue of the project financial statements no other significant events or transactions occurred, except for events or transactions described above. 14