Climate Adaptation and Mitigation Program for Aral Sea Basin Financed as part of Financing Agreement, grant No. D094-7C dated 1 July 2016 concluded between the Executive Committee of the International Fund for Saving the Aral Sea and the International Development Association Special Purpose Financial Statements for the years ended 31 December 2018 and Independent Auditors' Report BDO Climate Adaptation and Mitigation Program for Aral Sea Basin (CAMP4ASB), grant No. D094-7C Contents Page :esponsibiiity of the Management for Preparation and Approval of the Special purpose FinanciaL i:atem ents for the years ended 31 December 2018 ...................................... .......... ...... 2 -dependent Auditors Report ......................................... ............ .......... .............. .3-5 i:ecial Purpose Financial Statements for the years ended 31 December 2018: 3:atement of Sources and Use of Funds ...................................unds.6................................ 6 -:atement of Expenditure by Components.................... ............... ...........................7-8 '.ates to the Special Purpose Financial Statements ......... ............................I.......... 9-16 JTTACHMENT 1 Reconciliation between the Amounts Confirmed by CAREC and Paid by the World E a n k ....................................7.. .. . .. .. . .. .. . .. .. . .. ..-.-.-. .. ..-..-. . .. .. . .. ..1 'TTACHMENT 2 Reclassification of administrative expenses of CAREC for 2016 -2017 ......... .....18 T7TACHMENT 3 Budget for CAMP4ASB Project Approved by the World Bank : 17 M ay 2 0 18 . .............. ........................... - I ............. ...... .............. ....19 sibility of the Management for Preparation and Approval of the Special purpose Financial :-ents for the years ended 31 December 2018 - wing statement, which should be read in conjunction with the Independent Auditor's made to delineate the responsibilities of the management and the auditor with respect to a purpose financial statements of Central Asia Regional Environmental Centre (CAREC). --ent of the Regional Environmental Centre for Central Asia (hereinafter 'CAREC') is >Le for preparation of the special purpose financial statements by Regional components of Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) (hereinafter financed under the Financing Agreement, (grant No. D094-7C) made between the e Committee of International Fund for Saving the Aral Sea and the International --::nent Association (IDA) dated 1 June 2016 (hereinafter 'Agreement'), and in accordance --erating Agreement for implementation of Regional components of the Project made the Executive Committee of the International Fund for Saving the Aral Sea and the Environmental Centre for Central Asia 'CAREC' dated 25 July 2016, that fairly presents --:eeds and payments under the Project, expenses per components for 2018, financial fz the Project as at 31 December 2018 in accordance with International Public Sector Zi Standards (IPSASs) Financial Reporting under the Cash Basis of Accounting issued by the -nal Federation of Accountants, as well as the World Bank requirements relating to - Zn of the financial statements. i g the financial statements, the Management of CAREC is responsible for: ting and applying appropriate accounting policies; :-,sion of relevant, reliable, comparable and understandable information, including -:- --nting policies; * -,-.sion of additional required disclosures for the years ended 31 December 2016 and 31 ber 2018; nt of CAREC is also responsible for: eaping, introducing and maintaining an effective and reliable internal control system the course of Project implementation; airing an accounting system that allows to demonstrate and explain Project transactions time, ensure compliance of special purpose financial statements with the requirements aenational Financial Reporting Standards (IFRS), as well as compliance with the provisions - Financing Agreement, grant No. D094-7C between the Executive Committee of the --tional Fund for Saving the Aral Sea and the International Development Association; measures within its competence to ensure the safety of Project's assets and -ation that the funds received in accordance with the Financing Agreement, grant No. C between the Executive Committee of the International Fund for Saving the Aral Sea --e International Development Association, which was signed on 1 June 2016, were used tr the purposes of received financing, with due attention to economy and efficiency; -ing and preventing fraud and other irregularities. -:ecial Purpose Financial Statements for the year ended 31 December 2018, have been - the Management of CAREC 28 June 2019: Director of CAREC i udov .:-olic of Kazakhstan 2 ,BDO *DEPENDENT AUDITORS' REPORT To Management of 'Climate Adaptation and Mitigation Program for Aral Sea Basin' Project CAMP4ASB) financed under the Financing Agreement, grant D094-7C :pinion have audited the special purpose financial statements of 'Climate Adaptation and :gation Program for Aral Sea Basin' Project (CAMP4ASB) financed under the Financing -*ement (grant No. D094-7C dated 01 June 2016) made between the Executive Committee of ye International Fund for Saving the Aral Sea and the International Development Association -A) dated 1 June 2016 (hereinafter 'Project') and implemented by the Regional ronmental Centre for Central Asia 'CAREC' (hereinafter - CAREC) in accordance with e rating Agreement for implementation of Regional components of the Project made between - Executive Committee of the International Fund for Saving the Aral Sea and the Regional ronmental Centre for Central Asia 'CAREC' dated 25 July 2016, that includes statement of flows for the year ended 31 December 2018, statement of expenditure by components for year ended 31 December 2018, and also brief description of key accounting policies and er explanatory notes (hereinafter 'financial statements'). Our opinion: 1. The special purpose financial statements in all material respects fairly presents proceeds and cash disbursements of the Project for the years ended 31 December 2018, in accordance with International Public Sector Accounting Standards (IPSASs) Financial Reporting for Cash Accounting issued by the International Accounting Standards Board for Public Sector of the International Federation of Accountants, and also in accordance with the requirements for preparation of the financial statements given in: the Financing Agreement (grant No. D094-7C) made between the Executive Committee of the International Fund for Saving the Aral Sea and the International Development Association, Operating Agreement on implementation of Regional Components of the Project made between the Executive Committee of the International Fund for Saving the Aral Sea and the Regional Environmental Centre for Central Asia 'CAREC' dated 25 July 2016 and Project Operational Manual (for regional components of the Project) dated 2 August 2016; 2. All external funds were used in accordance with the terms of the aforementioned Financing Agreement, with due attention to the principles of economy and efficiency, and only for the purposes for which financing was provided; 3. Alt necessary supporting documents, records and a special account are maintained for all activities of the Project, including expenditures that are maintained under the statements of expenditure (SOE). Statements for the period correspond to the ledgers; 4. A special account is maintained in accordance with provisions of the Financing Agreement, the Operating Agreement and applicable instructions of the World Bank; 5. Goods, works, services were purchased under the terms of Financing Agreement and special provisions of the Procurement Guidelines of the World Bank. 3 : Auditors' Report (continued) an audit in accordance with International Standards on Auditing, we exercise judgement and maintain professional skepticism throughout the audit. We also: qy and assess the risks of material misstatement of financial statements, whether I or error, design and perform audit procedures responsive to those risks and obtain -'ce that is sufficient and appropriate to provide a basis for our opinion. not detecting a material misstatement resulting from fraud is higher than the one -rom error, as fraud may involve cotlusion, forgery, intentional omissions, tations, or the override of internal control. an understanding of the internal control system that is relevant for the audit in esign audit procedures that are appropriate in the circumstances, but not for the -expressing an opinion on the effectiveness of the Company's internal control. ate the appropriateness of accounting policies used and the reasonableness of estimates and related disclosures made by management. M-ate the overall presentation, structure and content of the consolidated financial including the disclosures, and whether the consolidated financial statements -a underlying transactions and events in a manner that achieves fair presentation. rmnicate with those charged with financing the Project, regarding, among other -e planned scope and timing of the audit and significant audit findings, including any deficiencies in the internal control that we identify dunng our audit. : stan LLP :ese for audit activities No. 15003448, :ebruary 19, 2015 by the Financial ommittee of the Ministry of Fi e Direc . maroy -;'blic of Kazakhstan, Nur-Sul 19 Auditor Irma Litvinchik Auditor qualification certificate No. 0000223 issued by the Qualification Commission for the certification of auditors of the Republic of Kazakhstan on 22.12.2014 peublic of Kazakhstan : - street 5 �:: 1 Q,� с; о � �.�; ' �ь � ,� .с' ,д ' � Ф sr � `t rn о+ ; .а . •ы � �� � 4@ �^"� � i СЭ С7 � го r,� r гч ; cr о� ; Ёг � � о о � i _ �� � м , i _. � � �*' � 1 •� ra � i ,.., , I � �S � м � � � �м! � `��' � � м rV �о � � f`+ �. •д I ,� � ео ' св '°'_ м I � � � � � I м г? � t,, i ц О и � . , ! j 1 � С t� i� и ьеS N �( гЧ � �\.~ ц � . {3 с6 � �i? 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С С7 � �- � � � � - °° ° � � � а� � ' _ v��' �о'' �й i и� � � 3 гSS ✓ 'у � ; С ;�.У L1� � п Q��� � � � � � ,� � �' _ � '�J '�� '' � � eL? `� � V ° _ ' � � ал � [�wu о tj t'�.� '� с] ` � •�' �р с � 'rг `, г �� р +х�' а и � с �, ..� I �- N го � � - � � � � � � м р � � � � Q �� �_� �. м 4� i а � � r � € - � � � � � �. ,� с � д � �; _ -_ д и � Е � 3 о., а с г3 �'�г � �- го с�❑; а�� с°-�, � � � � �н• У] V и ь� ..SС � ,о � С'. ; � ..� ь '� ++ С -_ й 4]. '� О � � s_ � <ц ,� � � �.._ � {3 а- s1г � � _ � г i ;°��� �° � �N ; _.imate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under e Financing Agreement, grant D094-7C -TES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December (USD) GENERAL INFORMATION 1. CAMP4ASB Project -ancing agreement, grant No. D094 - 7C (hereinafter the 'Agreement') made between the Executive -.mittee of the International Fund for Saving the Ara1, Sea (the 'Recipient') and the International . elopment Association acting as a donor (hereinafter the 'Association') was signed on 1 July 2016 :-Oject start date). According to the terms of Agreement, the International Development Association -ides grant equivalent to 10,700 (ten million seven hundred thousand) of Special Drawing Rights -'R) or equivalent to USD 15,000 (fifteen million) (hereinafter the 'Grant') for implementation of imate Adaptation and Mitigation Program for Aral Sea Basin' (CAMP4ASB) (hereinafter the 'Project'). -nditions of the Agreement provide for the financing of expenses without VAT. -cording to the letter of the World Bank dated February 13, 2019, amendments and additions were -ade to the Agreement, according to which 100% financing of Project expenses, including VAT, is -Dvided. Recipient, through Operating Agreement concluded with the Regional Environmental Centre of tra( Asia CAREC commits the Regional Coordination Unit (RCU), established under CAREC to be --sponsible for day-to-day management and implementation of Component 1 and Subcomponent 3.1 of -e Project, in full compliance with the Operating agreement and the Project Operational Manual. "Ithdrawal of cash under the Grant is carried out in US dollars, and payments are made in US dollars -d Kazakhstani terge. _ ,osing date of the Project is 30 April 2021. - 'ie Institution Regional Environmental Centre for Central Asia (CAREC) is a legal entity operating under -7e laws of the Republic of Kazakhstan, and is an independent, non-profit and non-political entity of .7ternational character that seeks to promote cooperation in solving environmental problems in Central '.sia at national and regional levels. accordance with the Charter, the Founders of CAREC are: " Republic of Kazakhstan; " Republic of Kyrgyzstan; " Republic of Tajikistan; " Turkmenistan; " Republic of Uzbekistan-, " Commission of the European Communities; " UNDP. 2. Objectives of the Project --)e objective of the Project is to enhance regionally coordinated access to improved climate change -nowiedge services for key stakeholders (e.g. policy makers, communities and civil society) in the - articipating Central A5ian countries, as well as to increase investment and capacity-building that, -ombined, will address the climate issues common to these countries. -he Project consists of the following components: Component I Regional Services in the field of Climate Knowledge Develop a unified, regional analytical platform for climate resilient and low emissions development in -entral Asia through: (a) establishment of the regional information platform for Central Asia through provision of technical assistance, goods (including software and equipment), consulting services and training and carrying out of minor civil works-, 9 ..mate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under -= Financing Agreement, grant D094-7C %ES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December (U5D) GENERAL INFORMATION (continued) (b) upgrading of climate-related monitoring systems for Participating Countries; (c) development of methodologies, approaches and tools to support climate- related decision making; (d) development of knowledge products, such as specialized analytical work, made available via, inter alia, web portals, mobile apps, publications; (e) capacity building through regional training, e-learning events, internships and study tours; (f) development of a mechanism to assess the results and lessons of climate investments implemented under Subcomponent 2.1 below, including through establishment of a pool of experts to evaluate the Sub-projects accomplished under Subcomponent 2.1; (g) design and implementation of a communications and public engagement strategy, including through climate knowledge fora and networks, to support knowledge dissemination, public outreach and coalition building. -Donent 2: Regional Climate Investment Funds - nponent 2. 1: Investment Financing -ease productivity and address climate change by promoting the adoption of climate-resilient and ;ation measures in rural production, land management and other areas through establishing and ting credit line facilities for the provision of financing, through Subsidiary Loans, to PFIs, through oans to Sub-borrowers to carry out the Sub-Projects, for scaling up suitable practices and - -ologies to improve climate resilience, risk reduction and mitigation and economic and social -imponent 2.2: Capacity Building and Community Support Support awareness raising, participatory planning and implementation support of climate -slment plans at the community- level through community level participatory appraisals and --,unity action plans, identification and design of appropriate investment plans, and building of the ical and organizational capacities of communities to implement their investments. Support Facilitating Organizations to provide technical advisory services to potential iciaries under Subcomponent 2.1. Provide capacity building of the PFIs through technical assistance in the area of assessment of -te investment proposals. -ponent 3: Regional and National Coordination --Dmponent 3.1: Regional Coordination ide project management support to the Regional Coordination Unit (RCU) for implementation of - onent 1, including procurement, disbursements, financial management, monitoring and - .-ation of Project performance, as well as Incremental Operating Costs. component 3.2: National Coordination -ade project management support to the National Coordination Units for implementation of _p-onent 2, including procurement, disbursements, financial management, monitoring and .ation of Project performance, safeguards oversight as well as incremental Operating Costs. EC is responsible for the implementation of Component 1 and Subcomponent 3.1, which serves as dination and support of the Project at regional level. 10 mate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under Financing Agreement, grant D094-7C ES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December (USD) GENERAL INFORMATION (continued) - crinent 2 and Subcomponent 3.2. implemented by the Participating Countries of the Project (.in -uar, Tajikistan and Uzbekistan), which carry out activities on climate investments and capacity --ng in their countries. Project Implementation :xecutive Committee of International Fund for Saving the Aral Sea ('Recipient') is responsible for ng out Component 1 and Subcomponent 3.1 of the Project in accordance with the requirements, organizational arrangements and operational procedures set forth in the Project Operational _a and the Environmental Management Framework (EMF). Recipient insures implementation the Project through an operating agreement with CAREC -ating Agreement') on terms and conditions satisfactory to the International Development :ation, which shall include, inter alia, the pertinent obligations set forth in the Agreement as table to CAREC, including: CAREC is accountable to the Recipient in implementation of the operational management and implementation of Component 1 of the Project. CAREC creates a Regional Coordination Group ('RCU') for the entire Project period, which is responsible for daily management and implementation of Component 1 of the Project, including coordination with each National Coordination Unit, at the level of broader project activities and in ful compliance with Operational Management of the Project, Operating Agreement and Anti-corruption Guidance. i) CAREC ensures that its Chief Accountant is generally responsible for financial management and disbursement functions, with the support of a financial management consultant. v) CAREC shall: (a) sign the contract for installation and adaptation of the accounting software acceptable to the Association for project accounting, budgeting and reporting of the Project; and (b) make provisions for adequate training on the new accounting system for the effective use by its accounting staff. CAREC undertakes that RCU shall be located and maintained in Almaty city, the Republic of Kazakhstan, for the life of the Project, all in accordance with the Project Operational Manual and the Operating Agreement. Categories of Expenditures Financing Agreement provides the following categories of expenditures: civil contracts, goods, -consulting services, consulting services, additional operating costs and training on the Project. KEY ACCOUNTING POLICIES Preparation and Presentation of the Financial Statements special purpose financial statements have been prepared in accordance with IPSAS Financial ting for Cash Accounting issued by the IASB for Public Sector of International Federation of ntants, and also in accordance with the requirements for preparation of the financial statements -n in: the Financing Agreement (grant No. D094-7C) made between the Executive Committee of the -:ernational Fund for Saving the Aral Sea and the International Development Association, Operating -2reement on implementation of Regional Components of the Project made between the Executive :nrmmittee of the International Fund for Saving the Aral Sea and the Regional Environmental Centre for entral Asia 'CAREC' dated 25 July 2016 and Project Operational Manual (for regional components of --e Project) dated 2 August 2016. 11 'Climate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under the Financing Agreement, grant D094-7C NOTES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December 2018 (USD) 2. KEY ACCOUNTING POLICIES (continued) 'ccounting policies set out further have been applied consistently for reporting periods presented in tnese financial statements. 2.2. Cash Flow of the Grant -inancial statements of the project: comprise the Sources and uses of funds statement for the year ended 31 December 2018, and statements of expenditure by components for the year ended 31 ecember 2018 (statement of cash flows) were prepared using the direct method, which discloses -formation on the main types of gross cash proceeds and payments. 2.3. Statements Presentation Currency hese financial statements are presented in US dollars (hereinafter 'USD'). moreign currency transactions are translated to the presentation currency at exchange rates at the transaction dates. ayment for goods and services rendered to Suppliers and Contractors shall be made in KZT and tanslated into the reporting currency of USD at exchange rate of Citibank Kazakhstan JSC at the date - conversion. -ayroll expenses of the Project staff and remuneration of national experts and consultants are charged 1 USD and paid in KZT at rate of the National Bank of Republic of Kazakhstan on the day of payment. 2.4. Taxes _AREC - as indicated in Section 1.1 of the Statements - an independent, non-commercial and non- z7litical entity of international character (legal form - Institution). According to the Charter, CAREC is tended to promote cooperation in solving environmental problems in Central Asia at the national and egional levels between non-governmental agencies, local government authorities, and any other iterested parties in order to develop free exchange of information, provide assistance to non- :overnmental environmental entities and other interested parties, increase public participation in the 7ecision-making process. Eased on the Agreement "On operating conditions of the Regional Environmental Centre for Central *sia", ratified by the Law of the Republic of Kazakhstan No. 69-11 dated 5 July 2000, paragraph 4, zrticle 7: The Centre for activities carried out within the framework of this Agreement and the 27 arter shall be exempt from all taxes, fees and other mandatory payments to the budget established y the legislation of the Republic of Kazakhstan; customs duties and restrictions on import and export respect of items imported and exported by the Centre for official use and in respect of its cbbtitons. AREC is not a VAT payer, the allocation of VAT on a separate line is not provided by the accounting there is no dedicated account for VAT). connection with the above, all expenses under the Project presented in financial statements of the roject are VAT inclusive. 2.5. Budget nitial expense budget of the CAMP4ASB Project was drawn up and approved by the World Bank on 07 September 2016 in total amount of expenses of USD 15 000 thousand, including for Component 1 - in the amount of USD 12,487 thousand and for Component 3, subcomponent 3.1 - in the amount of USD 2,513 thousand, which were distributed for the entire period of the Agreement (five years). Under Component 1, Administrative Expenses were set at 7%, or USD 874,090, agreed with the World Bank as non-audited expenses 12 -ate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under 7inancing Agreement, grant D094-7C E5 TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December (USD) KEY ACCOUNTING POLICIES (continued) quentLy, the World Bank informed that administrative expenses for the Project in the form of 7% .t be covered by the bank, work was carried out to revise budget for the entire period of the t implementation, as well as reclassification of these expenses (Note 7). ..pdated expense budget for. the Project expenses was agreed and approved by the World Bank in '018 (Attachment 2 to the Statements). CONSOLIDATED STATEMENTS OF EXPENDITURE (SOE) Phlicati Date of cash Amount of Approval date Data according Comments On No. receipt proceed of expenditure to SOE 5 08.01.2018 267,796 - - (2017 rOA) 6 03.03.2018 432,204 27.02.2018 430,714 SOE 06, 06a 7 30.07.2018 389,623 11.07,2018 389,623 SE 07 8 11.12.2018 328,423 30.11 2018 328,423 SOE 08 1,418,046 1,148,759 .ariance between applications in 2018 in the amount of USD 1,418,046 and actual expenditure -:ed in statement of expenditure (SOE) submitted to the World Bank in amount of USD 1,148,759 as a result of receiving funds under the Consolidated Statement of Expenditure (SE 05) for 2017 znuary 2018. CASH -:,ding to the terms of the Operating Agreement, CAREC opened a Special Account for financing the e:t implementation in Citibank Kazakhstan JSC: KZ7083201DO500032151, in USD. balances as at December 31 and the movement of funds of the Project on a special account for ,ear ended December 31, 2018 are as follows: 2018 2017 ance as of January 01 2,004 46,838 -.enishment Grant No. D094-7C 1,418,046 1,115,970 1,418,046 1,115,970 ENSES aid expenses 1,221,078 967,402 i:nnistrative expenses of CAREC - 193,402 amount of expenses (income) from changes in foreign -ency exchange rates -(1,086) 1,219,992 1,160,804 ance on December 31 200,058 2,004 u.ding denominated: 5 dollars 200,058 2,004 13 imate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under *e Financing Agreement, grant D094-7C **OTES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December 18 (USD) STATEMENT OF FINANCIAL POSITION -tement of financial position discloses assets, liabilities and net assets of the Project as at 31 ..e:ember 2016 and as at 31 December 2017 and 31 December 2018. This statement has been prepared an accrual basis. Item 31.12.2018 31.12.2017 SSETS ash 200,058 2,004 :vances paid* 58,523 27,884 Dtal assets 258,581 29,888 -ABILITIES - Icounts payabLe- 5 537 otal liabilities 5537 NET ASSETS -come (on an accrual basis) P-'ant No. D094-7C __2 806,293 1,388247 otal income 2,806,293 1,388,247 Expenses (cumulative) omponent 1. Regional Climate Knowledge Services 1,316,676 606,173 .,Jbcomponent 3. 1: RegionaL Coordination 1,237,659 758,186 otal Project expenses 2,554,336 1,358,359 *er amount of expenses (income) from changes in reign currency exchange rates (1,086) - tal net assets 253,044 29,888 Advances paid are represented by advances paid to the Suppliers for supply of inventory, works and :es under Component 1 of the Project in the amount of USD 58,523. Acounts payable are represented by expenses on advance reports for December 2018: for the work services performed under Component 1 of the Project in the amount of USD 2,847, as welt as for Property, Plant and Equipment) and services purchased under Component 3.1 of the Project in the nt of USD 2,690. PROJECT EXPENSES Project expenses financed by the Grant for 2017 and 2018. 2017 Cumulative at 31 Categories of expenditures 2017 December - -_ _ _2017 * s under civiL contracts, goods, non-consulting services, s.ting services, additional operating costs and training on the 427,028 626,449 ect under implementation of Component 1 :s, non-consulting services, consulting services, additional ating costs and training on the Project under impLementation 540,374 759,794 7xcomponent 3.1 -TAL 967,402 1,386,243 14 nate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under Financing Agreement, grant D094-7C ES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December (USD) PROJECT EXPENSES (continued) m:rninistrative expenses of CAREC for 2016-2107 (non-audited) were reclassified and recorded in ative expenses as of 31.12.2017 (Note 7), 2018 Cumulative at 31 Categories of expenditures 2018 December 2018 under civil contracts, goods, non-consulting services, ting services, additional operating costs and training on the t under implementation of Component 1 745903 1,372,352 non-consulting services, consulting services, additional -ing costs and training on the Project under implementation Jcomponent 3.1 opnn 3.1____ _ 475,175 1,234,969 -AL 1,221,078 2,607,321 Implementation of expense budget of the Project for 2017 and 2018 is as follows: * 2017 Categories of expenditures Cumulative at 31 Expense Budget December 2017* budget implementation s under civil contracts, goods, non-consulting :es, consulting services, additional operating 626449 410,467 1526% and training on the Project under mentation of Component 1 :s. non-consulting services, consulting services, -nal operating costs and training on the Project 759,794 658,110 115 5% implementation of Subcomponent 3.1 AL 1,386,243 1,068,577 129.7% * 2018 Categories of expenditures Cumulative at 31 Expense Budget December 2018 budget implementation -5 under civil contracts, goods, non-consulting -7ces, consulting services, additional operating : and training on the Project under -n eentation of Component 1 1,372,352 4,499,767 30% :, non-consulting services, consulting services, -::,onal operating costs and training on the Project 'mplementation of Subcomponent 3.161,234,969 1,197,525 103% -AL 2,607,321 5 ,6 9 7 ,2 92 46% - deviations between budget and actual Project expenses were due to the revised budget in -:ct of circumstances set out in section 2.5 of the Statements and reclassification of -- strative expenses (Note 7). 15 - imate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under -e Financing Agreement, grant D094-7C .STES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December (USD) ADMINISTRATIVE EXPENSES OF CAREC :ministrative expenses at 7%, or USD 874,090 were provided initially upon concluding the Financing - reement, grant No. D094-7C and budgeting for the Project CAMP4ASB in total amount of expenses for mponent 1 USD 12,487,000. The mentioned administrative expenses were agreed with the World nk as non-audited expenses (section 2.5 of the Statements). -e World Bank approved and paid requested grant amounts for the Project from the beginning of the -,ject to December 2017. e to the fact that the World Bank subsequently informed that administrative expenses of the Project the form of 7% cannot be covered by the World Bank, in 2018 CAREC administrative expenses in the :_ount of USD 74,979 were reclassified for 2016 and USD 193,402 for 2017, which were previously elected in a separate line in the Project statement of sources and use of funds. -ese expenses are recorded in the cumulative expenses of the project as of December 31, 2017 by hmponents (Attachment 2). PROPERTY, PLANT AND EQUIPMENT (PPE) AND INTANGIBLE ASSETS - and intangible assets of the Project are as follows: Balance on Balance on Name 31.12.2017 Proceed Disposal 31.12.2018 ifice equipment 21,010 3,033 - 24,043 llfice furniture 376 682 - 1,058 C Accounting - 229 229 otal 21,386 3,944 - 25,330 SUBSEQUENT EVENTS :etween the reporting period and the date of approval of these financial statements there were no -:hier events that could affect these financial statements. 0. LITIGATIONS .ring the Project implementation period and at the date of approval of the financial statements, -AREC had no legal claims against third parties or organizations, or from third parties or -ganizations. 1. DATE OF ISSUE -ese financial statements were approved for issue by the Executive Director of the Regional vironmental Centre for Central Asia CAREC on 28 June 2019. -afar Mahmudv :,ecutive Director :egional Environmental Centre -r Central Asia CAREC 28 June 2019 16 imate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under he Financing Agreement, grant D094-7C OTES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December 018 (USD) Attachment 1. Reconciliation between the Amounts Confirmed by CAREC and Paid by the World Bank for 2018 Application Data of Data of the Categories of expenditures for Deviations witdraal CAREC World Bank Dvain withdrawal :onstruction works, goods, non- 05 267,796 267,796 :onsuLting services, consulting 06 432,204 432,204 ;ervices, additional operating costs 07 389,623 389,623 'nd training on the Project 08 328,423 328,423 Total 1,418,046 1,418,046 17 Climate Adaptation and Mitigation Program for Aral Sea Basin' Project (CAMP4ASB) financed under -e Financing Agreement, grant D094-7C ,DTES TO THE FINANCIAL STATEMENTS for the years ended 31 December 2016 and 31 December 0 18 ____ __ __ ___ ___ ___ ___ ___ ____ __ ___ ___ ___(USD) Attachment 2. Reclassification of CAREC administrative expenses for 2016-2017 Project's cost US dollars 2016-2017 Reclassificatio 2016 -2017 before n of after reclassification administrative reclassificati eXpenses ____on Iroject expenses expnse o Component 1 Regional Climate Knowledge Services DOcomponent 1.1 Creating an Information 104491 15785 120,276 atform for Central Asia -bcomponent 1.2 Target Modernization of Climate 8 3,284 3,291 Dserving Systems -bcomponent 1.3 Development of methodologies, 146,787 18,474 165,262 Bproaches and toots to facilitate decision making -bcomponent 1.4 Information Product evelopment 17,003 16,763 33,766 >bcomponent 1.5 Capacity Building 17,860 1,913 19,773 Ibcomponent 1.6 Implementing a climate 22,172 4,674 26,846 .estment assessment mechanism _bcomponent 1.7 Educational Outreach 143,514 113,722 257,235 Total for component 1 451,835 174,614 626,449 Component 3: Subcomponent 3.1: Regional Coordination 666,027 93,767 759,794 otal for component 3 666,027 93,767 759,794 atal Project expenses 1,117,862 268,381 1,386,243 - REC Administrative expenses for 2016-2017 268,381 (268,3811 otal Project expenses 1,386,243 - 1,386,243 18 _…,{, .曰d白..........曰.