DABG AUDJT CO.,LTD 110719 • AUDIT REPORT Financial Statement for the period from 31December2014 through 31 December 2015 • • • IMPROVING PRIMARY EDUCATION OUTCOMES • FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT I I \ I I I \ '" ) I Ulaanbaatar 2016 I • 1 I I Content P81!e I I FINANCIAL STATEMENT Auditor's reoort on financial statement 3-4 Audited financial statement 5 2 SOURCES AND USES OF FUNDS I Auditor's opinion on sources and uses of funds 6 Audited sources and uses of funds statement 7 I 3 STATEMENT OF EXPENDITURES Auditor's reporton Statement of Expenditure 8 Audited Summarv of Aoolications for Withdrawal 9 Audited Comprehensive Statement of Expenditure 10 I 4 DESIGNATED ACCOUNT STATEMENT Auditor's reoort 11 Audited Designated Account Statement 12 I 5 NOTES TO THE AUDITED REPORTS 13-19 6 LETTER TO THE MANAGEMENT OF THE PROJECT 20-21 7 RESPONSE ON THE LETTER TO THE MANAGEMENT 22 I I I • • • • • • • • Chingcltei dishict, 1'1 khoroo, agency building Phone: 9999-6217, #1, 9191-0954 E-mail: dabg.auditra1ynhoo.rorn MONTSAl\1E Ulaanbaatar l • Central post office-13 POB:2622 • • UNQUALIFIED AUDITOR'S REPORT • IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT • I "SAVE THE CHILDREN" NON-GOVERNMENTAL ORGANIZATION TO: MR. MITSUAKI TOYODA COUNTRY DIRECTOR • I We have audited the accompanying Financial Statement of the Improving Primary Education Outcomes for The MostVulnerable Children in Rural Mongolia Project, Grant No. TF012100, which is being implementedwith the support from Japan Social Development Fund, Trust Fund of the World Bank, for the period ending 31 December 2015. Management's Responsibility for the Financial Statements I Management is responsible for the preparation and fair presentation of these financial statements in I compliance with International Public Sector Accounting Standard, Grant Agreement, World Bank's Manual and other relevant instructions and procedures. I I This responsibility includes: selecting and applying appropriate accounting policies; designing, implementing and maintaining internal control relevant to the preparation and fair presentation of I financial statements that are free from material misstatement, whether due to fraud or error; and making accounting estimates that are reasonable in the circumstances. I I Auditor's Responsibility I Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require I that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. I I An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the I assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. I In making those risk assessments, the auditor considers internal control relevant to the entity's I preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the I effectiveness of the entity's internal control. J I I An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall I presentation of the financial statements. I We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis I for our audit opinion. I Opinion In our opinion, the Financial statements give a true and fair view of the financial position of Improving Primary Education Outcomes for The Most Vulnerable Children In Rural Mongolia Project as of December 31, 2015, and of its financial performance and its cash flows for the year then I ended in accordance with International Accounting Standards, Grant Agreement, World Bank's Manual and o her relevant instructions and procedures. I I I I I I I I I I I I I I I I 4 Japan Social Development Fund -TFOl2100 "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST I VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT-130760 I AUDITED BALANCE SHEET (as of31 December 2015) I (USD) 2014/12/31 2015112/31 I ASSET I. Cash I 1.1 Small fund / MNT/ 1.2 Designated account /U SD/ 76,973.61 198,325.80 Total cash 76,973.61 198,325.80 2. NON-CURRENT ASSET 2.1 Goods 361,485.87 539,811.65 2.2 Consultant'sservices 189,437.60 236,936.30 I 2.3 Training 427,663.63 808,016.25 2.4 Civilworks 27,202.46 27,202.46 2.5 Community Block Grants 34,664.64 72,488.49 2.6 Operating costs 82,169.62 121,232.81 I 2.7 Non-financed funds 42.90 290.65 Total I, 122,666. 72 1,805,978.61 I TOTAL ASSET l,199,640.33 2,004,304.41 I LIABILITIES AND SOURCES I. Sources I I . I Grant Fund from Japan Social Development Fund 1.2 "Save the Children" Non-governmental l, 197,043.33 2,000,579.00 Organization Fund I Total sources I,197,043.43 :Z.000,579.00 2. Bank net interest income I 2.1 Designated account net interest income 2,597.00 3,725.41 Total net Interest income 2,597.00 3,725.41 I TOTAL LIABILITIES AND SOURCES I, 199,640.33 2,004,304.41 I I . r-:--- M:= r~ . • j ~ !.;:iJ 1c:.: t~ • I Mitsuaki Toyoda CountryDirector § P.~ 1 !-: I I I .~ l.1 Gereltuya Ts . Project Manager • 1. _ L.t:Sc:.:. Bulgan B. Finance Manager • s I Chingeltei dishic:t, 1'1 khoroo, MONTSAME :agency building #1, Ulaanbaatar Phone: 9999-6217, 9191-0954 I E-mail: dabg.audit ii' yahoo.l"orn Centnd post office-13 POB:2622 I UNQUALIFIED AUDITOR'S REPORT IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST I VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT "SAVE THE CHILDREN" NON-GOVERNMENTAL ORGANIZATION TO: MR. MITSUAKI TOYODA COUNTRY DIRECTOR I We have audited the accompanying Sources and Uses of Funds Statement of the Improving Primary Education Outcomes for The MostVulnerable Children In Rural Mongolia Project, Grant I No.TFO 12100, which is being implementedwith the support from Japan Social Development Fund, Trust Fund of the World Bank, for the period ending 31 December 2015. Management's Responsibility for the Financial Statements I Management is responsible for the preparation and fair presentation of the Sources and Uses of Funds I Statement in compliance with Grant Agreement, World Bank's Manual and other relevant instructions and procedures. I This responsibility includes: selecting and applying appropriate accounting policies; designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the Sources and Uses of Funds Statement that are free from material misstatement, whether due to fraud I or error; and making accounting estimates that are reasonable in the circumstances. I Auditor's Responsibility I Our responsibility is to express an opinion on the Sources and Uses of Funds Statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. ~ Sources and Uses of Funds Statement was examined according to planned procedures. We have I evaluated the reasonableness of accounting estimates made by management, appropriateness of • I accounting policies, as well as adhered internal control. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. I Opinion In our opinion, the Sources and Uses of Funds Statementgives a true and fair view ofthe financial position of Improving Primary Education Outcomes for The Most Vulnerable Children In Rural I Mongolia Project as of December 31, 2015, in accordance with International Accounting Standards, ("t;'; !ee~ment,World Bank's Manual and other relevant instructions and procedures. I Wl oq ~.uo :r. o., LTD fd,6.05!30 i~ - \e)j_~_ 6 "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT-130760 I AUDITED SOURCES AND USES OF FUNDS (as al 31 December 2015) I (USO) I Accumulated as Accumulated as 2015 I SOURCES OF FUNDS of 31.12.2014 of 31.12.2015 Beginning balance of monetary asset Grant Fund from Japan Social Development Fund 1,197,043.33 803,535.67 2,000,579.00 "Save the Children" Non-governmental Organization Fund Non-financed source I Total sources 1,197,043.33 803,535.67 2,000,579.00 Bank net interest income 2,597.00 l,128.41 3.725.4 1 I Total other sources 2,597.00 1,128.41 3,725.41 • TOTAL SOURCES OF FUNDS USES OF FUNDS Goods l,199,640.33 361,485.87 804,664.08 178,325.78 2,004,304.41 539,811.65 Consultants' services 189,437.60 47,498.70 236,936.30 Training 427,663.63 380,352.62 808.016.25 Civil works 27,202.46 27,202.46 Community Block Grants 34,664.64 37,823.85 72,488.49 • Operating costs Amount withdrawn and not yet claimed 82,169.62 42.90 39,063.19 247.75 121,232.81 290.65 • Total disbursement I, 122,666. 72 683,311.89 ] ,805,978.61 Financing balance 76,973.61 121,352.19 198,325.80 • Designated account Operating account TOTAL CASH AND CASH EQUIVALENTS 76,973.61 76,973.61 121 ,352.19 121,352.19 198,325.80 198,325.80 • • r- --'- -- . ·" , . 1 '• . n... L [' ' I (/ ftt.:-Mits aki Toyoda Country Director ~ I' w;; f t: Gereltuya Ts. Project Manager .: I I .'J I • • • 1 <- ',, ~ I I • Bulgan B . Finance Manager • 1 Chingellei dishict, I" khoroo, MONTSAME I ngency building #1, Ulaanba.1tar Phone: 9999-6217, 9191-0954 I • E-mail: dahg.auditl(i·yahoo.com l • Centt·al post office-13 POB: 2622 I UNQUALIFIED AUDITOR•s REPORT • • IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT • "SA VE THE CHILDREN" NON-GOVERNMENTAL ORGANIZATION TO: MR. MITSUAKI TOYODA COUNTRY DIRECTOR We have audited the accompanying Statement of Expenditures the Improving Primary Education • Outcomes for The MostVulnerable Children In Rural Mongolia Project, Grant No.TFOl2100, which is being implementedwith the support from Japan Social Development Fund, Trust Fund of the World Bank for the period ending 31 December 2015. Management•s Responsibility for the Financial Statements • Management is responsible for the preparation and fair presentation of the Statement of Expenditures in compliance with Grant Agreement, World Bank's Manual and other relevant instructions and • procedures. This responsibility includes: selecting and applying appropriate accounting policies; designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the • Statement of Expenditures that are free from material misstatement, whether due to fraud or error; and making accounting estimates that are reasonable in the circumstances. • Auditor's Responsibility • Our responsibility is to express an opinion on the Statement of Expenditures based on our audit. We • conducted our audit in accordance with International Standards on Auditing. Statement of Expenditures was examined according to planned procedures. We have evaluated the reasonableness of accounting estimates made by management, appropriateness of accounting policies, • as well as adhered internal control. • We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion • In our opinion, the Statementof Expenditures gives a true and fair view ofthe financial position of Improving Primary Education Outcomes for The Most Vulnerable Children In Rural Mongolia Project as of December 31, 20 I 5, in accordance with International Accounting Standards, Grant • gr~_emenl~orld DABGAU k's Manual and other relevant instructions and procedures. ~016.0~.30 1,~~ 8 ~ I Japan Social Development Fund -TF012100 "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST I VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT-130760 I AUDITED SUMMARY OF APPLICATION FOR WITHDRAWAL (as at 31 December 2015) I USO) Number Note Claimed Financing I Date Amount Date Amount I Total as of I'' January of2015: I, 122,666.72 I, 197,043.33 I Note I 2 3 4 WA-7 -J 22-Jan-15 26-Jan-15 173,000.00 WA-8 -J 19-Apr-15 162,933.14 22-Apr-15 162,000.00 WA-9 -J 23-Jun-15 165,529.84 24-Jun-15 165,800.00 I WA-10 -J 22-Sep-15 164,398.23 24-Sep-15 164,295.67 WA-II -J 22-Dec-15 138,762.94 23-Dec-15 138,440.00 I WA-12 -J 18-Jan-16 51,439.99 19-Jan-16 Total of2015 6832064.14 803,535.67 I Total as of31 December 2015 1,805,730.86 2,000,579.00 • • Notes: ( 1) These applications for withdrawalsdisburscd in reporting year and linanccd by World bank. • (2) These applications for withdrawal were not trnnsforred to Designated account, but paid directly from World bank. (3) These applications for withdrawal disbursed in previous year and received financing from World bank in reporting year. (4) These applications for withdrawal disbursed in reporting year, but not claimed from World bank. • • ./Jt/h Mi.Jft: Gereltuya Ts. • (/ Country Director Project Manager • Bulgan B. Finance Manager • 9 • • • 0. • l:J .. • •••• Japan Social Development Fund -TF012100 "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT-130760 AUDITED COMPREHENSIVE STATEMENT OF EXPENDITURE (for the year ended 31 December 2015) ! i I Expenditure Total I ! Difference I l WA# I Doc# Goods I Consultant's services ! I Training J j Civil works j j Community Block Grants Operating costs /USD/ Financing I DA documentation 24 22,240.74 I 3,228.43 I 26,525.45 1 - ! 1,329.24 3,467.21 56,791.07 ' 56,791.07 . . W A-8 I DA documentation 25 4,840.71 7,720.54 I 34,141.86 I -I 2,864.08 2,861.40 52,428.59 52,428.59 -I DA documentation 26 I 11,344.38 3,009.88 32.388.55 t -I 3,858.61 3,112.06 53,713.48 53,713.48 - I r W A- 9 t DA documentat~on 27 16,570.11 2,684.68 . 52,344.91 I -1 9,028.81 3,054. 14 83,682.65 83,682.65 -I i DA documentation 28 17,461.90 I 2,145.58 l 57,694.73 I - 1.138.41 3,406.51 81,847.19 81,847.19 I • I I DA documentation 29 22,686.34 4,550.68 • 31 ,006.05 I -I 3,375.58 3,446.32 65,064.97 65,064.97 =1 ' W A-10 I DA documentation 30 1 48,178.59 . 2,140.09 9,078.23 I - I 5,411.81 3,200.92 68,009.64 68,009.64 I I I DA documentation 31 6,707.00 2,118.42 f 19,220.79 - l - 3,277.41 31,323.62 31,323.62 - j I DA documentation 32 1,408.82 i 2,457.92 i 39.380.37 ! -I 528.43 3,416.96 . 47,192.50 47,192.50 I - I I WA-II DA documentation 33 I0,840.65 2,099.29 I 31,039.12 ! -I 2,754.92 3,094.67 49,828.65 49,828.65 -I WA-12 DA documentation 34 DA documentation 35 12,484.87 3,561.67 2.105.63 13,237.56 I l 19,327.05 I 28.205.51 I -I -I 4.458.86 3,075.04 3,365.38 3,360.21 41,741.79 51,439.99 41,741.79 51,439.99 - =-1 I ! Total I 118,325.18 47,498.70 I 380,352.62 -I 37,823.85 39,063.19 683,064.14 683,064.14 -i 7/rJ- /J(}t ~ki Toyoda /Zf_ Gereltuya Ts. d (/ Country Director Project Manager I~ Bulgan B. Finance Manager 10 • • I Chingeltei dist1ict, 1'1 khoroo, agency building Phone: 9999-6217, #1, 9191-0954 MONTSAME Ulaanbaatar I dit o., E-mnil: dnbg.audit'li" ynhoo.com Centrnl post office-13 POB:2622 • I UNQUALIFIED AUDITOR'S REPORT IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST I VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT "SAVE THE CHILDREN° NON-GOVERNMENTAL ORGANIZATION TO: MR. MITSUAKI TOYODA COUNTRY DIRECTOR We have audited the accompanying Statement of Designated Account for the Improving Primary Education Outcomes for The MostVulnerable Children In Rural Mongolia Project, Grant No.TFO 12100, which is being implementedwith the support from Japan Social Development Fund, Trust Fund of the World Bank, for the period ending 31 December 2015. I Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the Statement of Designated Account in compliance with Grant Agreement, World Bank's Manual and other relevant instructions I and procedures. This responsibility includes: selecting and applying appropriate accounting policies; designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the I Statement of Designated Account that are free from material misstatement, whether due to fraud or error; and making accounting estimates that are reasonable in the circumstances. • Auditor's Responsibility • Our responsibility is to express an opinion on theStatement of Designated Account based on our audit. We conducted our audit in accordance with International Standards on Auditing. I Statement of Designated Account was examined according to planned procedures. We have evaluated the reasonableness of accounting estimates made by management, appropriateness of accounting policies, as well as adhered internal control. • We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. • Opinion • In our opinion, the Statement of Designated Account gives a true and fair view of the financial position of Improving Primary Education Outcomes for The Most Vulnerable Children In Rural Mongolia Project as of December 31, 2015, in accordance with International Accounting Standards, Gr ;t Agree~ment, World Bank's Manual and other relevant instructions and procedures. • d~~G AU i r 2qt1 .OS.30 IT ., LTD II Japan Social Development Fund -TF012IOO "IMPROVING PRIMARY EDUCATION OUTCOMES FOR THE MOST VULNERABLE CHILDREN IN RURAL MONGOLIA PROJECT-130760 I I AUDITED STATEMENT OF DESIGNATED ACCOUNT (as at 31 December 2015) I USD PART A- ACCOUNT TRANSACTIONS 2014/12/31 2015112/31 Beginning balance 164,802. 73 76,973.61 Add: Advance received from Japan Social Development Fund Funds received from Japan Social Development fund on that year 534,900.00 803,535.67 • Net interest of account balance Deduct: 1,055.27 1, 128.41 • Goods 209,189.45 178,325.78 Consultants' services 72,699.38 47,498.70 Training 275,589.39 380,352.62 Civil works Community Block Gr.ints 33,904.83 37,823.85 Operating costs 32,358.44 39,063 . 19 Amount withdrawn and not yet claimed 42.90 247.75 Ending balance 76,973.61 198,325.80 PART B-ACCOUNT RECONCILIATION Designated account balance as or year ending 76,973.61 198,325.80 Add: Amount withdrawn and not yet claimed Non-financed sources 171,923.58 51,730.64 Paid for bank service Deduct: • Net interest paid for account balance Non-financed sources Total advance recorded in designated account 2,597.00 246,300.19 3,725.41 246,331.03 • - - • • • A ~ • ~ Q {! f'.J SC JAPA N ~Ii f ~lil -rn ..:5'""""2SC...~'J r:; n'l -ern~~ne1 ~\!i: ') , ;r ,: .I-' ~ w It M1tsuak1 ~oyoda ~ 1 ~ ;,y•,·;:P:.::;1 LJ 2·' ~ Gereltuya Ts. Coun.t ry Director :. I :) 1 l ["•" 'j ..... ,. r ••' ' '' ~-. " I' .. r. Project Manager :~ h (. ·:, g1 I. ~ _ _; · L7~ ;..r;-.:::;-._--., ~..::s:.::J ~'Y • .i:' ....... ;,,. Bulgan B. • Finance Manager 12 0 NOTE I. PROJECT INTRODUCTION I • Project name: Improving primary education outcomes for the most vulnerable children in rural Mongolia I Project address: 1 Chingeltei district, Khoroo I, 4 " Floor, • I Grant number: Arizona Centre Japan Social Development Fund Grant -TFOl2100 Implementing agency "Save the Children" Non-governmental I organization Contract approval date 2012.02.15 Duration of the project 2012.06.21-2017.06.21 Project total cost 2,637,579USD Objective: The project aims to improve quality, performance, and access to preschool and primary school education for 7500 children aged between 5-10 in 30 soums of the Arkhangai, Uvurkhangai, I Dornod, Sukhbaatar provinces. I The development objective of the project is to improve the education outcomes of some 7,500 most vulnerable children (aged 5-10) in four educationally under performing and under served I rural aimags (Dornod, Sukhbaatar, Arkhangai and Uvurkhangai) of Mongolia. The project is comprised of three main components: I. Strengthening school preparation programs for new school entrants in remote communities I (home-based curriculum development; capacity building and technical support; and community mobilization); I • Training modules and materials on school readiness developed for parents, I school administrators, kindergarten/primary teachers, and dormitory staff; • Learning resource materials on school preparation produced for I0,000 I children/families; • 30 Toy and Equipment Libraries setup at 30 target kindergartens/schools; • 40 soum governors and local government officials trainedon school readiness/preparation; I • 30 community education councils formed at soum level and conduct regular operations; • Capacity of at least2 l 0 kindergarten/primary/dormitory teachers on school preparation built through training; • Up to 30 CECs provided with community block grants to promote the program delivery and reach; and • At least 3,600 parents/caregivers contacted to share knowled geand skills on caring • 2. for 5-6 year old children's psychosocial and development needs. Introducing extracurricular after-school programs specifically targeting lower-primary age children living away from home (development of after-school programs; capacity building and technical support; program delivery support; and community participation); and 13 • A school guidance manual on after-school programs developed and 30 soum schools (5 teachers per school, including primary and dormitory teachers and school social workers) I receive relevant training; • At least 60 target children regularly attend and benefit from the after-school programs per I school each year during the second year to the fourth year; I • At least 5 community members are identified, trained and act as after school program facilitators at each school; • 500 copies of an"After-School Program Best Practices Manual" developed and circulated to all schools in Mongolia; I • Up to 30 CEC sprovided with community block grants to promote the program delivery and reach; and I • 30school dormitories supported with basic equipment and renovation. 3. Piloting compensatory distance education programs for lower-primary age children in rural communities (program curriculum and learning resource material development; parents' education; capacity building and technical support; and program delivery support). • Alternative lower-primary, home-learning education curricula (gradesl-3)and their I corresponding teaching and learning materials (including a series ofself-learning videoprograms) developed and piloted; I • At least 1,000 teaching and learning resource materials developed, produced, and disseminated; • Training for at least 140 teachers,community volunteers and mentor parents trained on individual teaching/coaching/monitoring techniques and program delivery; • At least 300 children enrolled in the alternative lower-primary education equivalency I programs; • Capacity of 34soum/aimag school sorenlightenment centers to deliver program activities I improved (e.g., setting up of resource libraries); • • Up to 30 CEC-sprovided with community block grants to promote the program delivery and reach; and • Project-produced teaching and learning resource materials uploaded onto NFDE's web site for wider circulation and use. I New approaches and innovations • • • A School Readiness Toy and Equipment library will be established in each of the 30 soums. Community Education Councils will be established in each of the 30 soums. • • • A small sized, results based community block grant scheme will be introduced on a pilot basis. Alternative lower-primary, home-learning education curricula (gradesl-3) and corres ponding teaching and learning materials will be developed and piloted, including a series • of self-learning video programs for parents of children in Grade 1-3 . • • 14 • I Project source of funds: Component I Component name Strengthening school preparation programs for new school entrants (5 to 6 /thousand USO/ Bud2et 731.7 years of a~e) in the community I 2 Introducing extracurricular after-school programs in schools for 623.9 • I 3 4 vulnerable children (6 to IOycars ofage)living away from parents/home riloting compensatory education programs for lower-primary out-of- school children (6 to 9 years of aJ.?e) in rural communities Project management., monitoring and evaluation, and knowledge dissemination 573.3 528.7 I Total Proiect bude:et 2,457.6 I /thousand USO/ Ex penditure catffory Amount Financine:nercentae:e Total Consultants' services, training, 2,165.6 IOO% 2,165.6 goods, civil works Community Block Grants 117.0 IOO% 117.0 • • Operating Costs Total amount 175.0 2,457.6 IOO" 100% Ai 175.0 2,457.6 NOTE 2. ACCOUNTING POLICY The Recipient shall provide the World Bank with the following financial reports, which are prepared in accordance with the guidelines by the World Bank. I. Balance sheet • I Financial reporting 2. Statement on Use of Funds by disbursement categories 3. Statement on Use of Funds by project activity or • components 4. Designated account statement, Designated account reconciliation statement 5. Statement of Ex~enditures • • 2 Basis of presentation Received fundsand uses of the Project's financial statements are prepared on the cash basis of accounting. Project accounting should be in accordancewith the Financial Management Manual aooroved b~ World Bank. Reporting currency will be USO. MNT incurred costs shall be converted to USD by TDB exchange rate of first day of • • 3 Reporting measurement each month. USD incurred costs shall be converted to MNT by TDB exchange rate of that ~al . Balance as of 31 December 2014 should be considered as • 4 -·5 Presentation of the report Monitoring organization beginning balance and account balance should be presented by cumulative amount as of 31 December 2015 in Project financial statements. World Bank Registration Information "Sun Systems" accounting software is used to keep record 6 ~>-'stem and report. Income is recognized when cash is received. Income 7 Income consists of World Bank's financing and bank account - interest earnings. 8 Expenditure Disbursement is recognized as expenditure when the money -- 15 II II II is paid according to the purpose. Project's Designated Account in USO should be opened in a II commercial bank according to World Bank's approval. The 9 Designated account ceiling of the Designated Account is as follows: II ____ I. GrantTFO 12100-250,000 --......... ------ Procurement guidelines of World Bank should be adhered to ·- II in the procurement of goods, works and services. Following methods should be used according to procurement plan of II IO Procurement of goods, works reporting period. and services I. National Competitive Bidding ~50,000< 200,000 II 2. Shopping <50,000 3. Direct Contracting-al I contracts regardless of I1 contract value Should adhere to Consultant selection guidelines of World II Bank. Following methods should be used according to procurement plan of reporting period. II I. Quality-cost based selection ~100,000 2. Less-cost selection- Assignment meeting Procurement of consultants' II 11 services requirement of Para 3.6 of Consulting guideline. 3. Consultant's Qualification Selection- Assignment II meeting the requirement of Para. 3.7 of Consultant guideline II 4 . Individual Consultant Selection -Assignment meeting the requirement of Para. 5.1and5.3 II NOTES 4. FINANCIAL STATEMENT INDICATORS (USO) 11 A. Cash and cash equivalents I1 Designated account: II ,.------------·---- - --·-------- ---- -------..-··------- Account Bank name Account name 2014.12.31 2015.12.31 II number - Trade and Development Designated account 452566696 76,973.61 198,325.80 Bank /USO/ - Amount 76,973.61 198,325.80 Total - 76.973.61 -__!2~,325.80 ----------------------------------~· The project does not have small fund and sub-account. Expenditures occurred in rural areas and by cash are disbursed from non-governmental organization's general account and are replenished from designated account at the end of every month. t6 (I D • • •••• •• • •••••• D.Procu rement Procuremcnl ;:::: :-;B ln::: k-::- Re -- · ....- - - - - - - . - , - - - - -\.:iew ~ Conln1cl num~r Contractor !!_!tlhod l Prior /Posl . Budget Performance Ptrformancc . I. I Goods: SCJ-01/15 · Sodnress - Post $ 1,368.00 I $ 1,368.00 1 2015.01.06 ..2015.01.12 - Finalizcl -1 Comoanson ~ I Ekimto - s 12,194.oo I s 1 I 2 -- 3 SCJ-02115 SCJ-03/ 15 Bayartsetseg.M Comparison ComD11nson Post Post $ 2 ,194.oo 624.00 $ 624.00 2015.01.08 I 2015.02.08 I 2015.01.08 I 2015.0tJ 6 Finalized Finalized .! I 4 SCJ-05/ 15 I GL studio ComoarisonPost $ 1,025.00 $ 1,025.00 2015.01.09 i 2015.01.31 Finalized - Post - -1 -5 6 :Jj_ __ SCJ-13/15 SCJ-14/15 SCJ-18/15 . Batzori.& foundation Batzorig foundation S~e11_~pess ~ - m (!!nson Companson Com~rison Post Post - $ I $ $ 2,084.00 . $ 2,084.00 3,888.00 $ 3,888.00 2,325.57 s 2,325.57 2015.01.16 2015.01.31 2015.01.16 2015.01.31 2015.ot.26 I 2015.02.02 Finalized Finalized Finalize~i 9 I SCJ-21115 Khanburged Khaan Companson Post $ 818.60 I $ 818.60 2015.02.03 2015.02.IO Finalized ,..!![l SCJ-34/15 ! HSN Co.ltd C~a rison Post s 2,053.00 $ 2,053.00 2015.02.21 I 2015.04.10 Finalized 12 . SCJ-42115 Ma~icCrown Comoarison Post s 4,243.00 $ 4,243.00 2015.03.17 2015.03.30 Finalized ·.J.U SCJ-45115 I Tsasanchimeg Co'!!e!!rison Post - · Post s 754.95 $ 754.95 2015.03.25 I 2015.04.30 Finalized 14 SCJ-46/15 Anarmaa Comoanson $ 754.95 $ 754.95 2015.03.25 2015.04.03 Finalized I iliJ_ SCJ-47/ 15 I Enkhbat.E Co~rison Post - 1 Post s 626.66 $ 626.66 2015.04.0I I 2015.04.15 Finalized - 17 SCJ-58/15 Uchral.N Com_patiSon $ 626.66 $ 626.66 2015.04.17 2015.04.25 FinaliZcd ; 18 I 2015.04.17 I 2015.04.25 SCJ-59/15 Sambuudanzan.G Companson Post _..!_ S 307.00 $ 307.00 - $ 4,322.76 s 4,322.76 Finalized 20 J r-21 SCJ-62115 SCJ-63115 Olikhon in Dornod I Selcl!llc...E"CSS Companson Companson Post Post - $ 3,153.00 $ 3,153.00 2015.04.21 2015.05.08 Finalized 2015.04.16 _[ 2015.04.25_-I __ Finalized 22 SCJ-71115 Batzorig san - I Comparrson Post s 2,992.00 s 2,992.00 2015-06-09 2015-06-15 Finalized ;-23 SCJ-72/15 ! HSN Co.ltd Co~rison Post $ 2,583.44 $ 2,583.44 2015-06-09 I 2015.09.30 Finalized - I 26 SCJ-82/15 I Guchu: ur Trade Post $ 5 368.00 s 5,368.00 2015-07-02 I 2015-07- IO Finalized r27 SCJ-83/15 I Guchu "!_Ir_ Trade t =nson nson Post - $ 27,122.00 $ 27, 122.00 2015-07-02 ! 2015-07-10 Finalized - 28 SCJ-84/15 • Tsegts U j in Co.Ltd Comp nson Posl - $ 554.00 $ 554.00 2015-07-02 2015-07-10 Finalized . - 2015-07-09 f 26is-01-15 ~ 29 30 SCJ-93/15 SCJ-101115 1 Toyhmd - Saranzul Unieress Comoanson Comoarison Post Posl - - $ 9,083.00 $ 9,083.00 $ 1,304.00 $ 1,304.00 2015-07-23 I 2015-08-IO Finalized Finalized ..}.!.. SCJ-102115 . Altankhunda~a.Kh Comoarison Post $ 352.00 $ 352.00 20 15-09-08 ! 2015-09-15 Finalized 33 ' SCJ-139115 Best color international Comoanson Post $ 285.40 $ 285.40 2015-10-09 2015-11-01 Finalized 34 I SCJ-140/15 Best color international Comparison Post $ 679.00 s 679.00 2015-10-09 I 2015-11-01 Finalized - 35 SCJ-146115 Undrakh.D I Comoanson Post s 118.00 $ 118.00 2015-10-26 I 2015-10-28 Finalized 36 SCJ-150115 I Batsuuri.S Comoarison Post $ 3,743.00 $ 3,743.00 2015.11-03 I 2015-11-20 Finalized 37 SCJ-170115 I Selengc press I Comparison_ _ . Posl I s 1,934.68 $ 1,934.68 2015-12-02 2015-12-15 Finalized - ..1!.... SCJ-27115 - Khishigbuy! n = I Comparison Post s 630.67 $ 630.67 2015.02.13 ! 2015.03.15 Finalized ,__ Total 97.918.33 97,918.33 l - J - 18 I I I E.Operatlng Costs -- # -- Expenditure - - - Accumulated as - Accumulated as of 2015 I of 3I.12.2014 31.12.2015 I Project staff salary 39,171.68 20,625.19 59,796.87 I 2 Office rent 35,347.86 13, 124.15 48,472.01 3 Recruitment 4,088.21 179.69 4,267.90 4 Communication 2,828.09 1,261.19 4,089.28 5 .__ Stationery 118.27 213.64 331.91 I 6 Other support costs 615.51 3,659.33 4,274.84 -· Total amount -----· 82!169.62 39,063.19 121,232.81 ~- F.Dcsignated account interest earnings -- • ------·- · ----·-.....-·· ·- Grant number Accumulated as of Accumulated as Added Deducted 31.12.2014 of31.12.2015 I - TFOl2100 ----- - - - · · -- - 2?~2J~C!Q__ 1,328. 14 199.73 - · -~------- 3,725.41 Total 2,597.00 1,328.14 199.73 3,725.41 • • • 19