○州 屆＿江＿〕土一日 露、、―）粚．k、」激斗1＿『！一、－ 蘿哥一，j一’一，．縴、！州）瀆7 了江―- 一膩卹啊權瞋平謎下響鴛開開緬闕陶釅闕開爾爾釅爾荊勵夔 Supremie Audit Office Government of Islanfic Republic of Afighanist 11 Auditor's Report To, Date: II Septenfl-)cr- 2018 Nlinister of Financc, Covernment of Eslanik Republic of Afghanistan Kabul Independent Auditors' Report on the Financial Statements l . Wc luive auditc(1 Ilie accornpanying statements of Cash Reccipts and flavnients ftlie Stýiteiiieiits") of the Af-liamstan First Pulille Private Partnership Pro' 1-marinli, World Bank- PrOJect ID number PISS768 financed under Gran( ',,umKr TE- 014,845 (liet-cliiýtl'tcr retåred to as Ilie -Pro,jcct-) for Ilie vear endecl 30 Qaws of Solar Year 1390 (21 December 2016 to 21 December 2017), arld a SLIIYMMFV Of SHMifi1CMIt 'ICCOLilltill. policies atid other explanatory notes f'ot-l-nliiý) part oftlic Fitiancial St t ments. The Ministry of Finance's Responsibilib. for the Financial Statements an(1 Colupliancc ivith Grant A<,)[-eeillellt E]c Ministry o[- Enancc (the -%-finistry-) 's responsible f-or preparat on and i'ý i presentation of Ilie Vinancial Statemerits in accordancc with International Public Sector Standard -Financial Reporting under flie Cash Busis of Accouriting.- TbiS responsi -m i , i i i l -- il flity includes desionjno, lt-nplei-neiitiiiý, and maintaining internal control relevalit to the iii-ellýlt-,ltl(ýll und filir presentation of tlic financial statements which are frec from muterial, ks-lietlici- duc to fraud or curor; arid applying, appropråte accolintilig policics, avid making accounting estimates fliat are reasonuffic in the circumstanccs. Iii a(I(flti( -yn to tlie J')i- the preparation and preseritation oC Ilie linancial statemerits deseribed above- the Ministry is also responsible for ensuring tlial Ilie ,ictivltlcs, financial transactions al-id infOrmation i-etleetc(1 in tlie financial statements are in compliancc with Ilie Grant Agreement TF-O I 4ýý45 dated Junc 9 2013 und December 11) -)()16 entered into hetween Ilie Iskume Republic of Atighamstan and the International Pagc I ö13 . ........ .... Development Association acting as administrator of want funds for the provision of iSD 3.200000 funding to the Project. Auditor's Responsibility 4. Our responsibNiility is to express an opinion on these Financial Statements based on our audit. We have conducted audit of the financial statements, project operations and related internal controls in accordance with International Standards of Supreme A udit 1nstiotutons (ISSA]s-). Those Standards require that SAO comply with ethical regulations and plan and perfRim the audit to obtain reasonable assurance of the financial statenents being ee [urm material misstatement. Those standards require that SAO express iis opinion on whether the financial statements present fairly. in all material respeets, the cash receipts and payments of the project. 5. In addition to the responsibility to express an opinion on the financial statements deseribed above, our responsibility ineludes expressing an opinion on whether the activities, financial transaetions and information refleeted in the financial statements are, in all material respects, in compliance with the Project's Grant Agreement. This responsibility Mludes perloming procedres to ohtain audit evidence about whether all payments and reccipts are in compliance with the terns and conditions of Grant Agreement. 6. An audit invoves perirming proced ures to obtain reasonable and appropriate audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, inluding the assessnient of the risk of material misstatement of the financial statements. whetlher due to fraud or error. In making the risk assessnments, internal controls relevant to the entity's preparation and presentation of financial statements are considered in order to design audit procedures that are appropriate in the ciirumstances, but not for the purposes of expressing an opinion on the effeetiveness of internal controls. An audit also includes evaluating tie appropriateness of acCownting policies used, the reasonableness of aceounti ng estimates made by management, as vel1 as eviluating the presentation of tie linancial statements. 7. We believe that the audit evidence we have obtained is reasonabl and appropriate to prov ide a basis for our opinion. Opinion 8. In our opinion the Financial Statements present fairly, in all matem1.s pþeets, cash« receipts and payments of the Afghanistan First Publie Private PaLrtnership, t bearing World Bank Project ID number Pl 58768 tinanced under Grant N umber I- 014845 6or the year ended 30 Qaws of Solar Year 1396 (21 December 2016 to 21 December 2017) in accordance with International Public Sector Accounting Standard inancial Reporting under the Cash Basis of Accounting.- 9. In our opinion. in all material respeets, the activities, financial transactions and infornmation reflected in the financial statements are in complianec with tie terms and conditions oF Projct's Grant Agreement. Page 2 of 3 10. klana gement 1Letter. attached to this Audit Report, liihilights areas of improvement in ia]cial moanacement including compliance with fnancial covenants of the Grant Agreements and ef results of its operations for the 30 Qaws of Solar Ycar 1396 (21 December 2016 to 21 December 2017). These observations and recommendations lage heen comuniieated to and diseussed with the Project and are intended to improve interal controls and result in other operating efficiencies of the Project. Dr. Nlohan ad Sharif Sharifi Aulditt l of1 A fghan 1,11is tan1 uu it OfCI-ce Afhnstan 14' IPag-c3 (1t3 Jg Islamic Republic of Afghanistan Public-Private Partnerships and Public Investment Advisory Project World Bank Reference: Project ID P158768; Grant ID 14845 Financial Statements for the year ended 30th Qaws 1396 (21st December, 2017) Public-Private Partnerships and Public Investment Advisorv Project World Bank Reference: Project I) P158768, Grant I) 14845 STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 30 QAWS 1396 (21 DECEMBER 2017) 1396 1395 Receipts/ Receipts/ Payments Payments Controlled Controlled Cumulative by entity by entity To Date USD USD USD RECEIPTS initial Advance - - 600,000 Replenishments 644 522 242.123 2.609,877 TOTAL RECEIPTS 644,522 242,123 3,209,877 PAYMENTS Disbursement Category: Goods, Non-Consulting Services, Consultants Services, Training. Workshops and Incremental Operating Costs (Part A) - - 750,988 Goods, Non-Consulting Services, Consutants Services. Training, Workshops and Incremental Operating Costs (Part B) 562.205 225,901 1-877,882 Refund to Donor 498265 498,265 Bank Charges 75 100 500 TOTAL PAYMENTS 1,060,545 226,001 3,127,635 Increase/(Decrease) in Cash & Cash Equivalents (416,023) 16,122 82,242 Cash and Cash Equivalaents at the beginning of the year 498,265 482,143 Increase)(Decrease) in Cash & Cash Equivalent (416,023) 16.1227 Cash and Cash Equivalents at the end of the year 82,242 49265 The accompanying notes form an inte9 part of this financial statement. *7 Khalid Payenda Deputy Minister jIa al Ministry of Finance IstA{I( put Afghanistan Dated: September 4, 2018 IPublic-P"rivate Partnerships and I1)1blic 1investment Advisory Project World Bank Reference: Piroject I) P158768; (,rant I) 14845 SIGNIFICANT ACCOUNTING POLICIES & NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 QAWS 1396 (21 DECEMBER 2017) 1) LEGAL STATUS AND ACTIVITY a) The Public-Private Partnerships and Public Investment Advisory Project for Afghanistan is set up to develop a pipeline of feasible private and publicly funded projects. b) The project has three components: (1) Strengthening institutional and technical capacity component will strengthen the capacity of relevant institutions and support development of a Public Investment Management - Public-Private Partnerships framework- (2) Infrastructure project preparation facility component will support establishment and operation of an Infrastructure Project Preparation Facility, including development of its governance structure, institutional roles and responsibilities; and (3) Project management component will support the operation of the Project Management Unit to carry out its monitoring, management, and implementation obligations under the project until it is mainstreamed into the Afghan civil service. c) An earlier grant bearing reference number 14845 from the Afghanistan Reconstruction Trust Fund in the amount of USS 2,700,000 under the erstwhile Project P145443 - Afghanistan Resource Corridor Project was restructured to be fund the objectives of the project. The amount of the grant was also increased to US$ 3,200,000. d) The significant terms and conditions that determine or affect the availability of the funding assistance are primarily the presentation of eligible expenditures to donor within the period as per and in accordance with the financing agreement. e) These financia statements have been prepared in accordance with the requirement of the development grant agreement signed between the government of the Islami' Republic of Afghanistan and the International Development Association (acting as Arministrator of the Afghanistan Reconstruction Trust Fund) 2) SIGNIFICANT ACCOUNTING POLICIES a) Basis of Preparation The financial statements are prepared under the historical cost oktsron and in accoroance with Cash Basis IPSAS - Financial Reporting under tne Basis of Accounting issued by International Federation of Accountants (IFAC) b) Reporting Entity These financial statements are for the Project referred to in para 1(a) which is funded by the grant(s) as specified in para 1(c) and encompass the operations of the project to the extent funded by those grant(s) c) Receipts These represent grants and aid received and taxes collected but not transferred to the government:s revenue account during the period. d) Payments Payments made from Special Account are recognised in the financial statements based on the date the cheque is issued and direct payments by World Bank are recognised on the date on which the withdrawal application for the payment is submitted to the World I'ublic-Private Partnerships and Public Investment Advisory Project World Bank Reference: Project I1)11158768; Grant I) 14845 Bank However. cheques or withdrawal applications that were ultimately rejected by the bank or the World Bank are reversed in the reporting period 3) NOTES TO THE FINANCIAL STATEMENTS a) Initial Advance Initial advance represents the advance given by the World Bank into the designated bank account of the project. b) Reporting Currency The reporting currency is US Dollars- Since US Dollars is the principal 4isbursement currency of the donor, the financial statements are not prepared in the At thani which is the currency of Afghanistan. c) Currency Translations Transactions in currencies other than the reporting currency are translate t'o US Dollar at the rate of exchange at which the transaction is actually executed. d) Bank Charges The Ministry of Finance has negotiated with Da Afghanistan Bank that bank charges :ill not be charged on the transactions in the US Dollar Special bank account of the gart. Bank Charges may be levied by intermediary banks on deposits into the Special Account and balances returned to the World Bank. e) Comparison of Budget and Actual Amounts The Project, being the reporting entity for the purpose of these financial statements, in its capacity as such does not make its annual approved budget publicly available nor is its budget explicitly available publicly in the compiled approved budget in a manner purposeful to the context of these financial statements. Thus, the requirement of presenting a comparison of budget and actual amounts is not considered contextually applicable. f) Authorisation Date These Financial Statements are authorised by the Deputy Minister for Finance, Ministry of Finance or any official acting on his behalf who has been so authorised to act on the date endorsed on the Statement of Cash Receipts and Payments, g) Appendices The accompanying appendices provide additional information and analysis and form an integral part of these notes. except as indicated otherwise. h) Others These Financial Statements are originally prepared in English and then translated into Dan In the event of any inconsistency between the English and Dan versions, the English version shall be considered to be correct. Public-Private Partnerships and Public Investment Advisory Project World Bank Reference: Project ID P158768; Grant ID 14845 APPENDIX Al SUMMARY OF WITHDRAWAL APPLICATIONS FOR THE YEAR ENDED 30 QAWS 1396 (21 DECEMBER 2017) Description Application Number Initial Advance Amount USD USD DA-C 22 100,099 DA-C 21 68,795 Refunds Application Ran :RN000000310100 (299,875) Refunds Application Ran :RN000000321716 (198,190) DA-C 20 475,628 Public-Private Partnerships and Public Investment Advisory Project World Bank Reference: Project ID P158768; Grant ID 14845 APPENDIX A2 US Dollar SPECIAL ACCOUNT SUMMARY FOR THE YEAR ENDED 30 QAWS 1396 (21 DECEMBER 2017) Depository Bank: Da Afghanistan Bank Address: Kabul SA # 27607 SA # 27489 SA # 27490 USD USD USD Opening Balance as per Bank Statement 211,157 287,108 Add: Receipts from Donor 644,522 Credit against incorrect debit in prior year 12,866 Receipt from A/c 27489 25,733 644,522 12,866 25,733 Less: Payment for project expenditures 562.205 Transfer to A/c 27490 25,733 Debit against amount incorrectly charge to other account in prior year 12,866 Refund to Donor 198,290 299,975 Bank Charges 75 562,280 224,023 312,841 Closing Balance as per B.S 30 QAWS 1396 (21 DECEMBER 2017) 82,242 - Public-Private Partnerships and Public Investment Advisory Project World Bank Reference: Project ID P158768; Grant I) 14845 APPENDIX A3 US Dollar BANK RECONCILIATION FOR THE YEAR ENDED 30 QAWS 1396 (21 DECEMBER 2017) Account No: Depository Bank: Da Afghanistan Bank (DAB) Address: Kabul USD Ciosing Balance as per bank statement - 30 QAWS 1396 (21 DECEMBER 2017) Alc No. 27607 82,242 Closing balance as per financial statements - 30 QAWS 1396 (21 DECEMBER 2017) 82,242 . . ........ ................ Public-Private Partnerships and Public Investment Advisory Project World Bank Reference: Project I) P158768; Grant ID 14845 Appendix A4 STATEMENT OF ESTIMATED GRANT AMOUNT FOR THE YEAR ENDED 30 QAWS 1396 (21 DECEMBER 2017) (Merofaridnd Statenent - rot an rnlegfal part of the Fjarncia Sttentns) Amount In currency of commitment Amount of Grant USD 3,200000 Amrnount Cancelled USD 112,711 Amount disbursed by World Bank untill the end of 1396' USD 2,711,811 Undisbursed Balance USD 375,478 In reporting currency Amount disbursed by World Bank untill the end of 13961 USD 2,711,811 Equivalent US Dollars for undisbursed amount USD 375,478 Total estimated amount of Grant Funds available USD 3,087,289 Cumulative payments for Expenditure as per the Statement of Cash Receipts & Payments USD 2,629,370 1. Actual amounts of total disbursement made by the World Bank since the beginning of the project as available from Client Connection in currency of commitment. - - -- ------