Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project (TDF-2) Financial Statements and Independent Auditors' Report Period from 1 January 2018 to 30 November 2018 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Contents Page Project information 1 Statement of management's responsibilities 2 Independent Auditors' Report 3-4 Statement of cash receipts and payments 5 Statement of designated bank account 6 Notes to the financial statements 7-14 Budget and actual payments (Appendix) 15-17 Project information Project Second Trade Development Facility (TDF-2) Funding agencies International Development Association ("IDA") and Multi - Donor Trust Fund ("MDTF") Duration 1 April 2013 to 30 September 2018 (Inclusive of grace period, Maximum up to January 2019) Implementing Agency National Implementation Unit ("NIU") Department of Planning and Cooperation ("DPC") Ministry of Industry and Commerce ("MoIC") Project Director Mr. Phouvieng PHONGSA Deputy Director General NIU Programme Director Registered Office Ministry of Industry and Commerce Phonexay Road, P.O. Box 4107 Vientiane Capital, Lao PDR Auditors KPMG Lao Co., Ltd. 10th Floor, Royal Square Office Building, Samsenthai Road, Nongduong Nua Village, Sikhotabong District, P.O.Box 6978, Vientiane, Lao PDR Tel +856 (21) 454240-7 1 Statement of management's responsibilities It is the responsibility of management to prepare financial statements of Second Trade Development Facility Project ("TDF-2" or "the Project") for the period from 1 January 2018 to 30 November 2018, which are prepared in all material respect in accordance with the accounting policies as described in Note 2 to the financial statements. In preparing these financial statements, management is required to: * Select suitable accounting policies and apply them consistently; * Make judgments and estimates that are reasonable and prudent; and * Maintain financial records and prepare the financial statements based on the accounting policies as described in Note 2 to the financial statements. Project Management of Second Trade Development Facility Project is responsible for keeping proper accounting records, which disclose with reasonable accuracy, at any time, the financial position and performance of the Project. Members of project management have a general responsibility for taking such steps as are reasonably available to them to safeguard the assets of the Project and to prevent and detect fraud and other irregularities. Project Management confirms that the Project has complied with the above requirements in preparing the financial statements. On behalf of the management Phouvieng PHONGSA Lattanaphone Vongsouthi Deputy Director General Director of NIU Division NITU Programme Director Department of Planning and Cooperation Department of Planning and Cooperation Ministry of Industry and Commerce Ministry of Industry and Commerce Date: 15 JAN 2019 Date: 15 JAN 2019 2 KPMG Lao Co.,Ltd. 9i-0 Cih ain o '4ni0 10th Floor, Royal Square Office Building, :qa1 10, e9n91 13102C102 Samsenthai Road, Nongduong Nua Village, -1ut ng%CagjJn, &91j U6oube, Sikhotabong District, P.O.Box 6978, 0nmta c5 Ui. 6978, Vientiane, Lao PDR Tel +856 (21) 454240-7 DaooJ51ai, MZdZ me0 T +n1:+856 (21) 454240-7 Independent Auditors' Report To the Project Management, National Implementation Unit (NIU), Ministry of Industry and Commerce ("MoIC") Opinion We have audited the financial statements of Second Trade Development Facility Project ("TDF-2" or "the Project"), which comprise the statement of cash receipts and payments and the statement of designated bank account for the period from 1 January 2018 to 30 November 2018, and notes, comprising summary of significant accounting policies and other explanatory information. In our opinion, the accompanying financial statements are prepared, in all material respects, in accordance with the accounting policies as described in Note 2 to the financial statements. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project in accordance with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter We draw attention to Note 2 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist the Project management to report to donor. As a result, the financial statements may not be suitable for other purpose. Our report is intended solely for the Project management and donor, and should not be used by parties other than the Project management and donor. Our opinion is not modified in respect of this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation of these financial statements in accordance with the basis of accounting and policies described in Note 2 to the financial statements, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. KPMG Lao Co Ltd a Compan i Icensed oder the Foreign investment Law of Lao PDR, is a mo mboi of I PMG nter.ational, a Sws coope-at-ve 3 Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. T' b KPMG Lao Co., Ltd. Vientiane Capital, Lao PDR Date: 15 JAN 2019 KPMG Lao Co Ltd a Companv licensed under the Foeign Investment Law of Lao PDR, in a numberof IPMG Inter-ational, a Swiss cooperalive 4 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Statement of cash receipts and payments For the period from 1 January 2018 to 30 November 2018 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 Note USD USD Receipts 3 2,684,726 4,113,379 Payments Consultants' services 4 2,499,281 2,553,132 Training and workshops 5 518,558 375,591 Incremental operating costs 6 226,528 232,857 Goods 7 153,721 79,769 Matching grants B 1 Business Assistance Unit 8 - 540,634 Total payments 3,398,088 3,781,983 Movement in fund balance for the period (713,362) 331,396 Fund balance at the beginning of the period 827,249 495,853 Fund balance at the end of the period 113,887 827,249 Represented by: Cash on hand and cash at banks 9 113,887 462,580 Advances 10 - 364,669 113,887 827,249 The accompanying notes form an integral part of these financial statements Phouvieng PHONGSA Lattanaphone Vongsouthi Deputy Director General Director of NIU Division NIU Programme Director Department of Planning and Cooperation Department of Planning and Cooperation Ministry of Industry and Commerce Ministry of Industry and Commerce Date: 15 JAN 2019 Date: 15 JAN 2019 5 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Statement of designed bank account For the period from 1 January 2018 to 30 November 2018 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 Note USD USD Receipts 3 2,684,726 4,113,379 Payments Payments made out of Projects' accounts (3,398,088) (3,781,983) Decrease in advance 364,669 5,957 (Increase) / Decrease of cash at Projects' 9,153 (23,812) accounts (Increase) / Decrease in cash in hand 880 (551) Net (3,023,386) (3,800,389) (Deficit) / Excess of receipts over payments (338,660) 312,990 Fund balance at the beginning of the period 432,694 119,704 Fund balance at the end of the period 94,034 432,694 Represented by: Cash at designate bank account 9 94,034 432,694 The accompanying notes form an integral part of these financial statements Phouvieng PHONGSA Lattanaphone Vongsouthi Deputy Director General Director of NIU Division NIU Programme Director Department of Planning and Cooperation Department of Planning and Cooperation Ministry of Industry and Commerce Ministry of Industry and Commerce Date: 15 JAN 2019 Date: 15 JAN 2019 6 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements For the period from 1 January 2018 to 30 November 2018 These notes form an integral part of, and should be read in conjunction with, the accompanying financial statements. 1. Principal activities The Second Trade Development Facility ("TDF-2" or "the Project") is supported by a multi-donor trust fund ("MDTF") financed by Australia, the European Union, Germany, Ireland and by the International Development Association ("IDA") of the World Bank under Contract No. H8190; it is focusing on improving trade and private sector development in the Lao PDR. The World Bank administers the grant (Grant Contract No. TF14189 dated 28 March 2013), which is implemented by the Ministry of Industry and Commerce ("MoIC") of the Lao PDR. The aim of TDF-2 is to support Lao Government objective to achieve high rates of economic growth that translate into meaningful poverty reduction, as outlined in the 7th National Socio Economic Development plan ("NSEDP"). Its development objective is to support the implementation of the Government's trade and integration priorities outlined in the 2012 Diagnostic Trade Integration Study ("DTIS") Roadmap, and in particular to contribute to improved competitiveness and diversification, focusing outside the natural resource sectors. TDF-2 builds upon the results achieved under TDF- 1, which focused on: * Trade facilitation reforms for non-customs agencies, successfully laying the foundation for a Lao National single Window; * Core support to World Trade Organisation ("WTO") accession negotiation, including technical capacity development for negotiations, legal reform with a priority on sanitary and phytosanitary measures, and accession impact evaluation; * Broader support to trade related research; and * Sector investments in competitive sectors. The operation of TDF-2 is informed primarily by the Government's 2012 DTIS Update, as well as by related analytical work undertaken by the World Bank and development partners, including the 2010 Lao development Report (a County Economic Memorandum), the 2011 Lao Investment Climate Assessment and a series of trade-related analytical products prepared under the Trade Development facility MDTF (Diversification/product Space paper, Gender and trade Work Program, Export Survival Study, ATIGA Tariff Reform Impact Study, Agribusiness Work program, and the trade and transport Facilitation Assessment). TDF-2 thus forms the core element of a second phase Lao trade program, which also includes a complementary IDA Customs and Trade Facilitation project, grants from the Japan Social Development Fund, Trade Facilitation Facility, Gender Action plan and a large trade-related analytical program. The proposed operation is, in turn, closely aligned with the broader aid -for-trade program in the Lao PDR and related projects. The main activities of the Project in the period are set out in the comparison of budget and actual expenditure. As at 30 November 2018, the Project had 27 individual consultants (31 December 2017:22). 7 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements (Continue) For the period from 1 January 2018 to 30 November 2018 2. Summary of significant accounting policies The following significant accounting policies have been adopted by the Project in the preparation of these financial statements: a) Basis of financial statements preparation The financial statements of the Project, which are expressed in United States Dollars ("USD"), have been prepared in accordance with the modified cash basis of accounting. The accounting policies have been applied consistently throughout the period. b) Fixed assets All purchases of fixed assets are recorded as payments in the statement of cash receipts and payments upon acquisition. The Project maintains a Fixed Assets Register ("FAR") for control purposes. c) Cash Cash comprises cash on hand and balances with banks. d) Foreign exchange The Project maintains its accounting records in USD in accordance with the financial agreement. All cash is held in USD. Transactions in currencies other than USD during the period have been translated into USD at rates approximating those ruling at the transaction dates. All exchange differences are recorded in the statement of cash receipts and payments. e) Accounting reporting period The financial accounting year of Government of Lao PDR starts on 1 January and ends on 31 December, which has been effective from the fiscal years beginning on or after 1 January 2017 onwards. f) TDF categories of payments 1) Consultant Services It consists of payment to national and international consultants (individuals or firms). 2) Goods Good consist of payments for purchasing office equipment and firniture, computers and software. 8 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements (Continue) For the period from 1 January 2018 to 30 November 2018 2. Summary of significant accounting policies, (continued) f) TDF categories of payments (continued) 3) Incremental operating costs It covers reasonable payments directly related to the project made by an Implementing Agencies ("IA's"). It includes consumable materials and supplies, communications (postage, telephone and internet), media and printing service, translation and interpretations services, office space rental and utilities, maintenance of office equipment, operation and maintenance, fuel costs, bank charges required for the Project, administrative support staff, and project staff travel, lodging and per diems. It excludes salaries (including bonuses, fees and honoraria or equivalent payments) of civil servants. 4) Training and Workshop Training and Workshop consists of training, workshop, trainers travel and accommodation. 5) Matching grants - Business Assistance Unit This is a 50 % grant payment to support individual firms in building their skills and experience as to become fully internationally competitive. The key activities include: 1. Direct consulting services, advising individual firms on business growth plans; 2. Matching grants to assist individual firms financially in purchasing specialized business development services in support of growth plans; and 3. Rigorous impact evaluation of services provided. g) Receipt recognition Fund receipts from funding agencies are recognised as receipt when cash is credited to the Project's designated account. The funding agencies may make direct payments, at the Project's request, directly to a third party for eligible expenditures. h) Payments recognition Payments incurred in the frame work of the Grant Agreement are recognised on cash basis of accounting, i.e. when the payments are made. (j) Advances Advances, for activities such as workshops, conferences, monitoring trips, are reimbursable to the Project until expensed by the Implementing Agencies ("IA"). Advances are recognized as expenditure after the advance has been liquidated and the expenses reports are approved. Advances are requested by IA from the Project through formal advance request forms. 9 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements (Continue) For the period from 1 January 2018 to 30 November 2018 3. Receipts 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Direct Payment World Bank TDF-MDTF 14189 - 230,536 World Bank TDF-MDTF A3946 195,943 - World Bank TDF-IDA H8190 - 98,801 195,943 329,337 Grant Fund World Bank TDF-MDTF 14189 793,333 2,326,968 World Bank TDF-MDTF A3946 1,644,130 654,818 World Bank TDF-IDA H8190 51,320 802,256 2,488,783 3,784,042 Total 2,684,726 4,113,379 4. Consultants' services 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Component A - Trade Facilitation, Trade Policy and Regulations Al - Trade facilitation support 221,173 179,811 A2 - Non Tariff measures review and rationalization 276,139 208,959 A3 - Trade in services 335,561 430,519 A4 - Trade in goods - 302,771 832,873 1,122,060 Component B - Diversification and Competitiveness B 1 - Business Assistance Unit ("BAU") - 198,064 B2 - Labor standards and manufacturing productivity 280,552 196,409 B3 - Business regulation review and rationalization 537,308 307,071 817,860 701,544 Component C- Mainstreaming Aid-for-Trade Cl - National Implementation Unit, and trade and 180,037 325,446 private sector, development working group C2 - DTIS action matrix/roadmap challenge facility 553,105 176,279 C3 - Research and policy analysis - 43,880 C4 - Public - Private Dialogue 115,406 183,923 848,548 729,528 Total 2,499,281 2,553,132 10 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements (Continue) For the period from 1 January 2018 to 30 November 2018 5. Training and workshops 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Component A - Trade Facilitation, Trade Policy and Regulations Al - Trade facilitation support 86,667 115,076 A2 - Non-tariff measures review and rationalization 32,814 24,920 A3 - Trade in services 107,528 23,499 A4 - Trade in goods - 4,840 227,009 168,335 Component B - Diversification and Competitiveness B3 - Business regulation review and rationalization 77,318 5,390 77,318 5,390 Component C- Mainstreaming Aid-for-Trade Cl - National Implementation Unit, and trade and 62,242 71,863 private sector development working group C2 - DTIS action matrix/roadmap challenge facility 95,650 38,416 C3 - Research and policy analysis - 54,362 C4 - Public - Private Dialogue 56,339 37,225 214,231 201,866 Total 518,558 375,591 11 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements (Continue) For the period from 1 January 2018 to 30 November 2018 6. Incremental operating costs 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Component A - Trade Facilitation, Trade Policy and Regulations Al - Trade facilitation support 67,796 61,700 A2 - Non-tariff measures review and rationalization - 182 A3 - Trade in services 100,043 74,148 A4 - Trade in goods - 10,931 167,839 146,961 Component B - Diversification and Competitiveness B 1 - Business Assistance Unit ("BAU") - 267 B2 - Labor standards and manufacturing productivity - 3,133 B3 - Business regulation review and rationalization 5,459 9,819 5,459 13,219 Component C- Mainstreaming Aid-for-Trade Cl - National Implementation Unit, and trade and 35,894 54,670 private sector development working group C2 - DTIS action matrix/roadmap challenge facility 12,836 5,262 C3 - Research and policy analysis - 6,899 C4 - Public - Private Dialogue 4,500 5,846 53,230 72,677 Total 226,528 232,857 12 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements (Continue) For the period from 1 January 2018 to 30 November 2018 7. Goods 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Component A - Trade Facilitation, Trade Policy and Regulations Al - Trade facilitation support 7,938 18,184 A3 - Trade in services - 52,621 7,938 70,805 Component B - Diversification and Competitiveness B3 - Business regulation review and rationalization 61,285 - 61,285 - Component C- Mainstreaming Aid-for-Trade Cl - National Implementation Unit, and trade and 84,498 6,349 private sector development working group C4 - Public - Private Dialogue - 2,615 84,498 8,964 Total 153,721 79,769 8. Matching grants BI Business Assistance Unit 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Component B - Diversification and Competitiveness B 1 - Business Assistance Unit ("BAU") - 540,634 Total - 540,634 13 Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Notes to the financial statements (Continue) For the period from 1 January 2018 to 30 November 2018 9. Cash on hand and cash at banks 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Cash at designate bank account 94,034 432,694 Cash at Projects' accounts 19,853 29,006 Cash on hand - 880 Total 113,887 462,580 10. Advances 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD International Labour Organization ("ILO") 352,144 Trade facilitation support 9,025 Business regulation review 500 NTU - 3,000 Total - 364,669 11. Commitments The Project has outstanding commitments as follows: 1 January 2018 1 October 2016 to 30 November to 31 December 2018 2017 USD USD Consulting Firm* 5,500 18,700 CF-MPI** 1,645 - Total 7,125 18,700 * The commitments refer to audit fees which has been paid on 10 January 2019, upon finalization and delivery of final report. * * The commitment refer to training activities which has been paid on 10 January 2019, upon actual invoice from Implementation Agencies. 14 а''i � � м rn о й N о °о й � � й д � м М с� � и о � о оо е� � ^ й и [� � о .-i � ��, а� °�° А cv �о о о, о т � т и о� � р '� � о о и � r, � ,� ,� ,� � N м ... е� � ... .. а� 'b Z � � R" д ом '� д � � � о о о о о о о о о о � � � 'b �' ^ о о °о о о °о °о о о о° а, q � 'о `�,° й еи А о о о о о о о о о о � � р; °��� v ° о°о ° о°о и° �°с � ми, г°а� � н s°'. д � .--� .-. ,� ,� vi сч и ш � V ; о о о о р о о о о р Ш у 01 �О N и N И N � О � .�yG' � �, ^ N N ' ' М О ,у 7 'О � ~ ' г' О � 3 � � b U а� �. � с� ^ с� � �о �о т � � о � � й � °O м � N R й � � О ои0� У Gi /1 � 1б а�о А � й � ои, о м � м °и о N � � � А � М v '--1 '-ч � N М '--1 � `.+ � �..i �.�' V � U � � � о i. О� � �Ч � Й r^i оор М д � м д ,.� гn � оо О^ й rn й о а° Е°.-�° А `� о � � о ° о; • о н= о о�v � �" " � � N � н p.i � N Z N � � ,�. °о о° °о °о °о °о °о °о о° °о � �°' '1 о о о о о о о о о о о к А �^о г� до� ° о°о ° ооо� °и ° � гиn г°v о � � ,� -� ,-. и с� .� �n й •к � и у U сб � vi 'О � о О � �О l� ' ' О ' О •? р� R ом д о°`о � о�, � м v' .-. •�, а�о, �� А �л оо �л о с� с-� ^ о и и га о о � � � н i N r и N 'л М [� [� r-+ ,b ti о о .. � N ш н N Z � г., ' с� о � д' LЛ � � b �� ,-ч ,� � � i,^ � о°Oо й м�i г°� й � о й � � N � О � N � �О М 00 � � � � ,� а � � ,.., � и � оо rn о�о ° � м й о о v � Z a�i � � ° � [ .� .-� .-. и й г� ,� ,� �л д о о� � U � а 'о � г., °�, �, � �, „ �+ i-� и .� , > � , е� р.{ �$ о� д л о � о � й м й � й ° N а� i. �� v�± � М� ,� СЧ и а� .--+ �о у и гn о^ � о �' А. ,� >., � � о�� д а� м ао м vi гу о ,� ,� � � � � N и� �°,-,° о й� со�а м�; ом й н о N й � � V � � � s�. � � � N z � ^о U р � � ^� � � � ° еа � � � � у bA � � о a3i л'� � С � �--� a�i � .� �" � � � -b У � � � r„�',, � 1� � ^б � '� rs.c�, � и � ' � й � `° • � о � ру �н' � � 4� у vO С � ' � N ' � ,; ,b � > й � О � о R� h"�Э .� Е'i � � С ь. д С О^' а� О Ч� a�i � � ч-� о а� о a�i А й � а ы•� у Ч�в �Fн� � Сб �Q 'ir � N V � сUб � sY.�. �' � О � ¢ Ч С й.N л О о а� � т. .� а� ,� � � г�' F, .b ' �, ' �, а � � о �, � � � о. л� � н �' А" °� �д ё b о о b -о � � о^, о�• и � � Е �' �, � а� � о г� о � � ° о С . й �. � " ° ,°� � е�"а о � �г, � � � а �, Z 3 Н Н " °о. о � ,� � � ' L с � � � v � � и ¢ о .� cv �> м � о о � д� � � � � д :✓ �АZй Ur� Е'д-'-� v¢¢� ¢¢ Н v аа:�а� � а� �� Н у� о0 �О � ^ N О� +' у 00 \О М м м 00 � � � l� М � � � �О �К � � � � .� � а+ °...i° А � "' � � N Й � р 'гк а� > о и 8 �,bzн►�." -� � ао°м � А � у +, о о о о о о у � � ,� �^ о о о о о о о о о о о о q � О � й bA А О О О О О О Q � Pr � j у О н�7 оо0 ио ооо � Й Й � � д � .у-'., N � И �О у н � U � О О О О � \ � � у � N О е е -" v м � � .., м � .. ,у Э 'С � . � � � .°� � U � � оо и ,� ^ н о� ¢+ у > оо �с м �''� м оо С� r,a G� r� l� М .-ч � � �О � � ^" `� � о м `�° v о о о 'ti ,� га и � � � ° U � � о � � о , о >' ° as., м ° ° °° м м � cv о ,-. .� а� � оно А � N �� ш я,� а� о и .� �о .о i°, о о N � " � а, ,� е� Z и � � � � о о о о о о � �� А о о о о о о о � b и о°о °и о°о °� й й о А г-i .� vi �о й -ц � +' `'' � � у U ОА й ^О � "� М О ' � h � • � � � мо д � °о � й й �. 'у °° S°,-,° А � й о о°м QQ � � Ор ; N ьи�- М �О N N N � � ,.б �, о о .. ,� м y�j р G� н N Z N �" i' � б� " :." р �^ � N � о�о оио Й ~ 0 ^гу � �+ а� .-. U� ,� � Q �n и м и о � О > `�N о'ti и й � � v° N о°�,� � и � N � 7 � � cv ,� и � q � Г�" р �'"~ ёе U О о •О � М ц, � i '�" iв �." о � сб `� 'О •-• ,-• ' � [� оо а� s�. р" е� � °� д �°м � .. ьCб. й й c�v й о � � •L��' � ,� л ,� о ° � °,-,° А Е� й й � °о о � ОО ,� � N и� �°^°, о N н.�и о м и .-, и м �С о .. w � м � U � W � s�' � � ,� �v Z 'ti О'б �" �, Сб еб с�-. � д� V С,'� � .б � ч-� а� ед С� у �, ,i'"., О bA � а� � � � С. � � � � к ° � о >>� �� bд� ш� � w� д л � �,�'+,, � С7 б� "'� �i" � _.�. й aoi ' ь, о . � А и ^. � � � � � � v >> •[ � а � � о и U � Ру � '� ан Я ь. ед а� 'b � � а' �у а+ ^С '�" � А '+" й � b�D � р" соа � Я `� � . > д � о а� о � ��., � � � а� � О д, са Г. р � � :в •� � � г.д С, � О • V � U а О о у� �" •�' а� '" � V � о Е'_' > и cva � .� � ��" �� iн Q" N'С С • 'д ��--� О й и р О �+ .� � С� � Lч О iб о А Е'� й s"� о� д, � а� а Z`� о А к у��>, А" к к � � � � � •� ��� � � � U U А й U� ч`� U с�а U Е-� Е-� �АZй UГт� Н •� Ministry of Industry and Commerce Department of Planning and Cooperation National Implementation Unit Second Trade Development Facility Project Comparison of budget and actual payments (Continued) (Appendix) For the period from 1 January 2018 to 30 November 2018 Analysis of variances between budget and actual payments Despite the complexity of the nature of reform areas supported by the project, the implementation of which involved more than 10 agencies within MoIC and line ministries as well as business membership organizations such as the Lao National Chamber of Commerce and Industry (LNCCI) and the Lao Textile Garment Association at central and provincial level, the project has achieved and exceeded all key project impact and outcome indicators. In overall for the audit period from January to November 2018 the budget utilisation is over the budget by 167,533 mainly due to ILO had cleared advance during the period of $280,533 under Component B. The cumulative budget utilisation up to the project end period is under by $508,689. The cumulative to date expenses for some sub components may over/under the budget line, due to during the implementation period some activities may need to implement or reduce based on the original budget set out by using budget within the component budget line, but the for the total of each component still under the budget. The details of explanation each component see bellows: Component A- Trade Facilitation, Trade Policy and Regulations Overall, there were a number of activities implemented during reporting period for component A. However, $1,235,659 has been disbursed over the reporting period under the budged. The table presented on the previous page shows that, there were variances between actual and budget of $84,958 at the end of November 2018. The variances were caused by delay in some of procurement processes of consultants that currently an available in the market (Web Master Position) and delay of some activities will hold at Sekong province. By the way the cumulative expenses as of the end of the project also under the budgeted amount. Component B - Diversification and Competitiveness During the reporting period, actual expenditure of $961,923 has been recorded against component B which was completed at the end of November 2018 and there were variances between actual and budget of ($259,573) cause of ILO cleared advance outstanding $280,553 during the audit period and international consultant firm under B3 "Business regulation review and rationalization" (DERM) completed all activities. By the way the cumulative expenses as of the end of the project also under the budgeted amount. Component C - Mainstreaming Aid for Trade For the period, total expenditure for component C was $1,200,505. Over the period, almost activities implemented within the subcomponent C 1, C2 and C4 were completed in accordance with planned activities. However, there was a variance of $7,082 for the year. By the way the cumulative expenses as of the end of the project also under the budgeted amount. 17