$cran GRouP TSIAR.F!NANS, LLC I Uzbekistan, Tashkent, 100077, 2a, Chust street I Tel/Fax : (998-71 ) 262-50-70 i 262-0847 i 262-08 4,1 I E-mail : reception@ciar,uz; reception(@ciarorouo.net www.ciar,uz ( LAND ADMINISTRATION AND GEOSPATTAL SYSTEM MODERNIZATION PROJECT" GRANT NSTF OA4O11 INDEPENDENT AUDITOR'S REPORT ON THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM 26 APRIL 2017 I TO 31 DECEMBER 2018 lndependent Member of GENEVA GRoUP INTERNATIoNAL > $clenGRouP TSIAR.FINANS, LLC 2 CONTENT CONTENT ....................... 2 INOEPENDENT AUDITOR'S REPORT............. ................... 3 STATEMENT OF SOURCES AND USES OF FUNOS............,..... .....5 STATEMENT OF USES OF FUNDS ON EXPENDITURE TYPES AND COMPONENTS...... .........6 STATEMENT OF FINANCIAL POSITION .......... .,,..7 E USD GRANT ACCOUNT STATEMENT ..... ............... 8 EURO TRANSIT ACCOUNT STATEMENT...... O UZS TRANSIT ACCOUNT STATEMENT.................. 10 soE WTTHDRAWAL SCHEDULE.. ............................ 11 NOTES TO PROJECT SPECIAL PURPOSE FINANCIAL STATEMENTS... .................... 12 DESCRIpIoN oF THE pRoJEcr 12 2. GorNG coNcERN L AccouNTtNG po1tcy..................... 4. PRESENTED FINANCIAL STATEMENTS. ,,..'',,. IJ F r 5. CnsH eruo cnss ...14 t b DIREcT PAYMENTS ,,. 15 7. I 8. RECoNctLlATtoN oF WoRLD BANK FtNANCiNG FRo[,] TRUST FUND....................... ,,15 I t $crencRouP TSIAR.FINANS, LLC INDEPENDENT AUDITOR'S REPORT Addressee: Management of the State committee of Republic of Uzbekistan for Land Geodesy, Cartography Resources, and State Cadastre we have.audited the accompanying Special Purpose Financial Statements of the (Land Administration and Geospatial system Modernizati;n Project) (hereinafter- project) under - Resources, Geodesy, cartography and slate cadastre (hereinafter state committee on Land -.Gosromremg-oderk"Jastrl tinancea uy lnternational Bank for Reconstruciion and Development) lntern-ational Development Association (hereinafler the.world Bank) from grant funds pro_vided by the Ministry of srrategy iin;;;; ;iGilpuulic of Korea - under the Korea-worrd Bank cro.p pj$:r.tjc Facirity singre-Don6i "nd Trust Fund o"r"ir"tt"i- Trust Fund) according to-the Grant Agreement No.TFoA4ott aateo io Airit 2o1t period from 26 April 2017 to 31 December 2018. ltrereinattei -'Crant ljieementl, tor tne special Purpose Financial statements include statement of sources and uses of Funds, statement of uses of Expenditure Types and components, statement oi rinanclat po"irion, l'nd:.9n Transit Accounts statements, soE withdrawar sinedute, Notes c-r",it-,qctirnt - statement, to Financiar statements. special Purpose Financial statements by the management of Goskomzemgeodezkadastr based on the cash flow basis in accordance with Prepareg internationit proticseiior nccounting standards (hereinafter - lpsAS) issued by the lnternational Public sector Accounting standaras Board of the lnternational Federation of Accountants. Management,s Responsibility The management of Goskomzemgeodezkadastr is responsible for preparation and fair presentation of these special purpose financial statements based on the cash flow basis in accordance with tpSAS. This responsibility.includes designing, implementing and maintaining internat coniroire-tJr"niio tt'"'pr"prration and fair pre-sentation of the special purpose financi-al statements thlt are free from material mlsit"tlm"nt, *netne, dle to fraud or error;selecting and applying appropriate accounting po["i".; that are reasonable in the circumstances. r"r,inj estimates "nJ """Jr"tirg Auditor's Responsibitity our.responsibility is to express an opinion on these financial statements based on our audit. we conducted our audit in accordance with lnternational. standards on Auditing 1rse1. rnose iiano"ro. r"qiiiiiji"t we compty with ethical requirements and plan and perform the audit to o-bLin reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the -i""rroi^g financial statements. The procedures selected oepend on tne auditors the risks of material misstatement.of the financiai statementi, wrrether iuogment, th";*"ssmenl of dui to rraro or erti. rn .aking those risk assessments the auditor considers internal control relevint to ttre preparation anJ tlii-presentation ot tne Project' financial statements in order to design audit proceduies that aie appropriaG i^ it'" lir"rr.tances, but not for the purpose of expressing an opinionLn the effectiveness of the project,s internal control. An audit also includes evaluating the apPropriateness of accounting policies used and the reasonablenei; of accounting estimates made by the Project's management, as wett as evatuating the overal pr";;;i;ii;;;i the financiat statements. we believe that the audit evidence we have obtained is sufficient and appropriate provide to a basis for our audit opinion. TSIAR.FINANS, LLC $crenGRouP Opinion ln our opinion, the above-stated Special Purpose Financial Statements give a true and fair view of the sources and uses of funds of the "Land Administration and Geospatial System Modernization" Prolect for the period from 26 Aptll 2017 to 31 December 2018 and complies with conditions of the Grant Agreement and IPSAS, Moreover, (a) with respect to SOEs, adequate supporting documentation has been maintained to suppo( claims to the World Bank for reimbursement of expenditures incurred under the Grant No. TF0A401 1; and (b) the expenditures comply with objectives stipulated in the Grant Agreement No. TF0A401 1. ln our opinion, the Grant and Transit Accounts on Grant No. TF0A4011 for the period from 26 April 2017 lo 31 December 2018 give a true and fair view of the financial position of the Grant and Transit Accounts of the Project as at 31 December 2018 and of the cash flows for the for the year then ended and complies with the World Bank's guidelines. Emphasis of Matter Without modifying our opinion, we draw your attention to the Note 2 "Going concern" of the Special Purpose Project Financial Statements, which disclose that the closing date of the Grant is December 31,2019. Basis of Accounting Without modifying our opinion, we draw attention to Note 3 to the Special Purpose Financial Statements, which describes the basis of accounting. The Special Purpose Financial Statements are prepared to assist the Project to comply with the financial reporting provisions on the requirements conditions of the Grant Agreements and IPSAS. As a result, the Special Purpose Financial Statements may not be suitable for another purpose. Other Matter Financial Audit reports and opinions, as ruled by the requirements set by the World Bank, shall be uploaded, published and publicly accessible on the World Bank's website. Auditors: / lc 7s -/!/r/,2-,rzzzlt( TSIAR.FINANS LLC 2a, Chust Street, Tashkent, 100077, Republic of Uzbekistan 16 August 2019 (Land Administration and Geospatial System Modernization,, Project, Grant Agreement No. TF0A40'l l STATEMENT OF SOURCES AND USES OF FUNDS for the period from 26 April 2017 to 3'l December 2018 (USD) Actual Budget Variance Year to Date Cumulative Year to Date Cumulative Year to Date Cumulative Opening Cash Balance USD Grant Account 0 UZS Transit Account 0 EURO Transit Account 0 Total 0 Adct: Fina ncino Crrit n"""rit n"pil"i.nr""i 31 000 31 000 Direcl Payments 214 308 214 308 Total financino 245 308 245 308 't 557 000 't 311 692 Less.' Uses of Funds Goods 0 0 0 100 000 0 100 000 l"i.rit""i" ."*"". 214 308 214 308 820 612 I 182 302 606 304 967 994 lncremental Operating Costs I 128 1 128 7 040 32 000 5 912 30 872 Tra in ing 14 129 14 129 15 000 15 000 871 871 Contingency 0 0 0 227 698 0 227 698 +_!al 229 564 229 564 842 652 r 557 000 613 087 't 327 436 Cto:in9 C€sh Balance USD Grant Account 15 728 15 728 UZS Transit Account '15 15 EURO Transit Account 0 0 Total 15 743 15 743 Signed by management on 14 August 2019 Vice-chairman of GKZGDK Chief Accountant of GKZGDK Project Finance Specialist "Statement of Sources and Uses of Funds" to be read in conjunction with Notes (pages from 12 to 15) thereto {nrminn an iht6^r.l tha O.^ia^r .^^^i-l ai^-^^i-l -}^.^6^^r^ (Land Administration and Geospatial System Modernization, Proiect, Grant Agreement No. TF0A4011 STATEMENT OF USES OF FUNDS ON EXPENDITURE TYPES AND COMPONENTS for the period from 26 April 2017 to 31 December 2018 (usD) Actual Budget Variance Year to Year to Year to Cumulative Cumulative Cumulative Date Date Date Comoonent t: Technical Assistance for the establishment of an lnteorated 214 308 214 308 820 6't2 1 172 302 606 304 957 994 lnformation Svstem for Real Propertv Reoistration and Cadastre (llSRPRc) Component 2: lnstitutional 15 257 't5 257 22 040 157 000 6 783 '141743 Strenothenino Fumiture and eouioment for the Trainina 0 0 0 100 000 100 000 Centre Audit of TA Proiect 0 0 0 10 000 10 000 Proiect Manaaement 15 257 15 2s7 22 040 47 000 6 783 3',1 743 Continqencv 0 0 0 227 698 0 227 698 Total 229 564 229 564 842 652 I 557 000 613 087 1 327 436 Signed by management on 14 August 2019 Vice-chairman of GKZGDK Chief Accountant of GKZGDK Project Finance Specialist "Statement of Uses of Funds on Expenditure Types and Componenrs" to be read in conjunction with Notes /naocq frnm 12 to 15\ therpt.t f^rmin.t .n iniF.!12l nari nf thF PrniFal snceial finan.ial sl2tFmFntq I (Land Administration and Geospatial System ModernizationD Project, Grant Agreement No. TF0A4011 I STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31,2018 (USD) I I Assets As at 31/12/2018 t Cash and cash equivalents, including: 15 743 I USD Grant Account UZS Transit Account 15 728 15 I EURO Transit Account 0 t Total Usea of Funds, including: 229 564 Project Costs 229 564 t Total assets 0 245 308 t Fundinq: Funds of Trust Fund 245 308 l. Total fundinq 245 308 I L L l. t Signed by management on 14 August 2019 Ivlamatov A. llyosov Vice-chairman of GKZGDK Chief Accountant of GKZGDK Project Finance Specialist " Slatement of Financial Position" lo be read in conjunction with Notes (pages from 12 to 15) thereto forming an I (Land Administration and Geospatial System ModernizationD Project, Grant Agreement No. TF0A4011 I USD Grant Account Statement for the period from 26 April 2017 lo 31 December 2018 I Account No. Depository Bank 2269 6840 9043 9697 9002 "ASAKA' Bank, City branch I Address 73, A. Kahhar str., Tashkent, Republic of Uzbekistan Credit Grant No. TFOA4o11 Currency USD I USD I Opening Cash Balance 0 I Cash inflo\iv: Grant financing Total cash inflow: 31 000 31 000 T i Cash outflow: Converted into UZS Converted into EURO 4 500 I 472 I Expenses on related categories Total cash outflow: 1 300 15 272 I Balance as at 31 December 2018 15 728 I t i t ! t Signed by management on '14 August 2019 tr -"^1,.-.- @rg MZmatov A. Sobitov F. Vice-chairman of GKZGDK Chief Accountant of GKzGDK Project Finance Specialist I " USD Grant Account Statement' to be read in conjunction with Notes (pages from 12 to 1 5) thereto forming an <\.^^:^l .i ^ ^.^:.1 l I No. SLAGSMP/CS/1 dated '11 May 2018 for consultant's services. 7. Taxes Services and goods acquired from Grant funds are exempted from all taxes and levies based on Tax Code of the Republic of Uzbekistan. 8. Reconciliation of World Bank financing from Trust Fund Reconciliation between Client Connection data and Project data as of December 31, 2018 is stated below: Funds of Trust Fund