SUSTAINABLE RURAL WATER SUPPLY AND SANITATION DEVELOPMENT PROJECT (SRWSSDP) IDA CREDIT NUMBER 5907-KG IDA GRANT NUMBER Dl 38-KG ADDITIONAL FINANCING FOR SRWSSDP IDA CREDIT NUMBER 6088-KG IDA GRANT NUMBER D204-KG IMPLEMENTED BY COMMUNITY DEVELOPMENT AND INVESTMENT AGENCY SPECIAL PURPOSE FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT For the year ended 31 December 2018 BISHKEK May 2019 SUSTAINABLE RURAL WATER SUPPLY AND SANITATION DEVELOPMENT PROJECT IDA CREDIT NUMBER 5907-KG IDA GRANT NUMBER D138-KG ADDITIONAL FINANCING FOR SUSTAINABLE RURAL WATER SUPPLY AND SANITATION DEVELOPMENT PROJECT IDA CREDIT NUMBER 6088-KG IDA GRANT NUMBER D204-KG TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS 3 INDEPENDENT AUDITOR'S REPORT 4-5 SPECIAL PURPOSE FINANCIAL STATEMENTS For the year ended 31 December 2018: Statement of cash receipts and payments 6 Statement of expenditures per components 7 Notes to the special purpose financial statements 8-18 ANNEX 1. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE ARIS AND DISBURSED BY THE WORLD BANK 19 2 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND PRESENTATION OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS The management of the Community Development and Investment Agency ("ARIS") is responsible for the preparation of the special purpose financial statements of "Sustainable Rural Water Supply and Sanitation Development Project" ("Project") financed by Financing Agreements IDA Credit Number 5907-KG and IDA Grant Number D1 38-KG dated 26 October 2016 and Financing Agreement IDA Credit Number 6088-KG and IDA Grant Number D204-KG dated 13 November 2017 that present fairly the Project's cash receipts and payments, and expenditures per components for the year ended 31 December 2018, in accordance with the International Public Sector Accounting Standard: Financial Reporting under the Cash Basis of Accounting, ("IPSAS-Cash Basis") issued by the International Public Sector Accounting Standards Board ("IPSASB") within the International Federation of Accountants ("IFAC") and the Financial Management Manual for World Bank Financed Investment Operations (WB Guidelines). In preparing the special purpose financial statements, ARIS's management is responsible for: * Properly selecting and applying accounting policies; * Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; * Providing additional required disclosures for the year ended 31 December 2018. ARIS's Management is also responsible for: * Designing, implementing and maintaining an effective and sound system of internal controls, throughout the Project; * Maintaining adequate accounting records that are sufficient to show and explain the Project's transactions, and which enable them to ensure that the special purpose financial statements of the Project comply with IPSAS - Cash Basis and the WB Guidelines; * Taking such steps that are reasonably available to them to safeguard the assets of the Project and to affirm that funds received have been used in accordance with the Financing Agreement IDA Credit Number 5907-KG and IDA Grant Number D138-KG dated 26 October 2016 and Financing Agreement IDA Credit Number 6088-KG and IDA Grant Number D204-KG dated 13 November 2017, and World Bank related guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; and * Preventing and detecting fraud and other errors. The special purpose financial statements for the year ended 31 December 2018 were authorized for issue on 27 May 2019 by the ARIS's Management. On beha ofthe A anagement: Bekzhan Supanaliev Ulanbek Zaynalov Executive Director Financial Manager 3 INDEPENDENT AUDITOR'S REPORT To the management of the Community Development and Investment Agency Opinion We have audited the special purpose financial statements of "Sustainable Rural Water Supply and Sanitation Development Project" ("Project") financed by Financing Agreement IDA Credit Number 5907-KG and IDA Grant Number D138-KG dated 26 October 2016 ("Financing Agreement") and Financing Agreement IDA Credit Number 6088-KG and IDA Grant Number D204-KG dated 13 November 2017 ("Additional Financing Agreement"), and implemented by Community Development and Investment Agency ("ARIS"), which comprise the statement of cash receipts and payments and the statement of expenditures per components for the year ended 31 December 2018, and notes to the special purpose financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the cash flows for the year ended 31 December 2018 in accordance with International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting, (IPSAS-Cash Basis). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) as issued by International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project and of the ARIS in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled out other ethical requirements in accordance with IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter- Cash Basis of Accounting We draw attention to Note 2 to the financial statements, which describes that financial statements are prepared in accordance with cash basis framework, as a result, they may not be suitable for another purposes. Our opinion is not modified in respect of this matter. Responsibilities of the Management for the Financial Statements Management of the ARIS is responsible for the preparation and fair presentation of the special purpose financial statements in accordance with IPSAS-Cash Basis issued by the International Public Sector Accounting Standards Board (IPSASB) of the IFAC and Financial Management Manual for World Bank Financed Investment Operations ("WB Guidelines"), and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility for the Audit of the Special Purpose Financial Statements Our objectives are to obtain reasonable assurance about whether the special purpose financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is high level of assurance, but is not a guaranty that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements arise from fraud and 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 special purpose financial statements. BD mi 1a is isC eaiOber of BDO renwtiana Lmlid. a JK lirmted by gu i'at drat fo: m par: of the intir t 800 ecc of independe t Cbr Enn'; As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the special purpose 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 internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Evaluate the overall presentation, structure and content of the special purpose financial statements, including the disclosures, and whether the special purpose financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 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. Report on Other Legal Requirements To comply with the terms of the Financing Agreement and Additional Financing Agreement, the ARIS management shall insure that: 1. funds have been used in accordance with the conditions of the Financing Agreement and Additional Financing Agreement concluded between the International Development Association (IDA) and the Kyrgyz Republic, and WB Guidelines, with due attention to economy and efficiency, and only for the purposes for which the financing was provided; 2. supporting documents, records and accounts have been maintained to support claims for reimbursement of expenditures incurred. Expenditures included in the withdrawal applications and reimbursed against are eligible for financing under the Financing Agreement and Additional Financing Agreement; Interim Unaudited Financial Statements (IFSs) issued by ARIS during the Reporting year are in agreement with the underlying books of account; 3. The Designated accounts used has been maintained in accordance with the provision of the Financing Agreement and Additional Financing Agreement, and World Bank related guidelines; 4. Goods and Services financed have been procured in accordance with the Financing Agreement, Additional Financing Agreement and World Bank related guidelines. In our opinion, the ARIS management has complied with the above requirements for the year ended 31 December 2018. 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General information 1. 1. The Project The Financing Agreement IDA Credit Number 5907-KG and IDA Grant D138-KG was concluded on 26 October 2016 between the Kyrgyz Republic and the International Development Association (IDA), according to which IDA provided financing to the Kyrgyz Republic in the amount of 9,300,000 Special Drawing Rights (SDR) and 7,600,000 SDR, respectively. The Financing Agreement became effective on 3 February 2017. The Financing Agreement IDA Credit Number 6088-KG and IDA Grant Number D204-KG dated 13 November 2017 between the Kyrgyz Republic and the International Development Association (IDA), according to which IDA provided financing to the Kyrgyz Republic in the amount of 14,500,000 Special Drawing Rights (SDR) and 11,900,000 SDR, respectively. The Financing Agreement became effective on 7 September 2018. The financing was provided for the implementation of "Sustainable Rural Water Supply and Sanitation Development Project" (the Project). The payment currency of IDA Credit Number 5907-KG, IDA Grant D138-KG, IDA Credit Number 6088-KG and IDA Grant Number D204-KG is United States dollars (USD). The Closing date of both IDA Credit 5907-KG and IDA Grant D1 38-KG is set 30 June 2022. The Grace Period for submitting withdrawal application for expenditures incurred before the Closing date is four months following the Closing date: 31 October 2022, The Ctosing date of both IDA Credit 6088-KG and IDA Grant D204-KG is set 30 June 2025. The Grace Period for submitting withdrawal application for expenditures incurred before the Closing date is four months following the Closing date: 31 October 2025. 1.2. The Project objectives The objective of this project are: (i) to improve access and quaLity of water supply and sanitation services in the Participating Rural Communities; and (ii) to strengthen capacity of the Recipient's institutions in the water suppty and sanitation sector. The Project consists of the foLLowing parts: Part 1 : Water supply investment Rehabilitation of existing and/or construction of new water supply systems in the Participating Rural Communities, including preparation of designs and on-site construction supervision. Part 2: Sanitation Development (a) Retroffiting of existing indoor sanitary facilities and construction of new sanitary facilities in schools, pre-schOO15, and other social institutions; (b) Development of standard designs; (c) Provision of strategic technical, policy and capacity support for improved sanitation; (d) Carrying out needs assessment for selected Sanitary Epidemiological Surveillance (SES) units; (e) Development and imptementation of communication strategy and water, sanitation and hygiene educational campaigns; (f) Preparation of national strategy for rural sanitation; (g) Provision of ResuLts-based Incentives to eligible beneficiaries as Sub-grants to upgrade their household sanitation facilities to a hygienic level. Part 3: Institutional Strengthening Part 4: Project Management l !:,-,,;-，긔 · Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D1 38-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 1.4. Project Implementation The Project is implemented by Community Development and Investment Agency (ARIS). The ARIS was established on 15 October 2003 according to the Kyrgyz President's Decree for operating control over the Projects financed by the World Bank. ARIS is an independent legal entity, and it is registered in the tegat organizational form envisaged by the tegislation of the Kyrgyz Republic for non-for- profit organizations. Co-founders of ARIS are Administration of the President of the Kyrgyz Republic, association of legal entities "Association of local self-government bodies of vitlages and communities of the Kyrgyz Republic" and "Counterpart-Sheriktesh" public association. The work of ARIS is supervised by the Supervisory Board, which is the superior steering body of ARIS. The ARIS address is: 102 Bokonbayeva Street, Bi5hkek, the Kyrgyz Repubtic, 720040. 10 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D 138-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 2. Summary of significant accounting policies 2.1. Preparation and presentation of financial statements The special purpose financial statements are prepared in accordance with the International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting (IPSAS-Cash Basis), issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC), and presented in accordance with Financial Management Manual for World Bank Financed Investment Operations (March 2010): RM 3 - Financial Reporting and Auditing. The principal accounting policies applied in the preparation of these special purpose financial statements are set out below. These policies have been consistently applied to all the periods presented. 2.2 Cash basis of accounting Project financing is recognised as a source of project funds when the cash is received. Project expenditures are recognised as a use of project funds when the payments are made. 2.3 Reporting currency The reporting currency of these special purpose financial statements is United States doLLars (USD). The cofinancing received and expenditures made in local currency, Kyrgyz Som (KGS), are translated into USD based at the exchange rate prevailing at the date of the transaction as issued by the CJSC "Kyrgyz Investment Credit Bank" ("KICB"). The exchange rate defined by the KICB is as follows: 31 December 2017: USD 1 = 68.70 KGS. 31 December 2018: USD 1 = 69.75 KGS. 2.4. Taxes The taxes are paid in accordance with the tax regulation of the Kyrgyz Republic. 2.5. Budget Expenditure budget is created based on actual accumulated expenditures for the last period plus the updated procurement plans for the Reporting year. 11 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D1 38-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 3. Summary of Summary Reports and SOEs 3.1. IDA Credit Number 5907-KG Withdrawal Withdrawal Disbursement categories Total application No application (1) Works for the Project value date 2 28-Jun-2018 382,604.76 382,604.76 13-Sep-2018 874,342.38 874,342.38 4 28-Sep-2018 463,866.05 463,866.05 Total 1,720,813.19 1,720,813.19 3.2. IDA Grant Number D138-KG Disbursement categories Wpplicthrw Woapiat l (1) Works for the (2) Goods, non-consulting application No application Prjc,evcs,cnutns Total value date Project services, consultants' oa services, Training and Operating costs for the Project 5 02-Feb-2018 625,694.80 57,228.52 682,923.32 6 02-Apr-2018 422,495.68 268,932.72 691,428.40 7 04-May-2018 469,594.40 79,863.99 549,458.39 8 28-Jun-2018 611,589.31 248,977.39 860,566.70 9_ 24-Sep-2018 - 370,244.96 370,244.96 Total 2,129,374.19 1,025,247.58 3,154,621.77 3.3. IDA Credit Number 6088-KG There were no SOEs or Summary of Summary reports submitted to WB during the year ended 31 December 2018 related to IDA Credit Number 6088-KG. 3,4. IDA Grant Number D204-KG There were no SOEs or Summary of Summary reports submitted to WB during the year ended 31 December 2018 related to IDA Grant Number D204-KG. 12 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D138-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 4. Statement of Designated Accounts 4.1. Financing Agreement IDA Credit IDA Grant Number 5907-KG Number D138-KG Bank account number 1280016035865054 1280016035864246 Bank CJSC "Kyrgyz Investment and Credit Bank" Bank location Erkindik 21, Bishkek, Kyrgyz Republic Account currency USD USD IDA Credit IDA Grant Number Number 5907-KG D1 38-KG Total For the year ended 31 Dec 2018 USD USD USD 1. Opening balance as at 01.01.2018 317,077 317,077 2. Add: opening discrepancy 3. IDA advance/replenishment 2,720,813 3,154,622 5,875,435 4. Less: Refund to IDA from DA - - - 5. Present outstanding amount advanced to DA 2,720,813 3,471,699 6,192,512 6. DA closing balance as at 31.12.2018 142,660 666,000 808,660 7. Add: Amount of eligible expenditures paid 2,578,153 2,805,699 5,383,852 8. Less: interest earned (if credited to DA) - - 9. Total advance accounted for 2,720,813 3,471,699 6,192,512 10. Closing discrepancy (5)-(9) 4.2. Additional Financing Agreement IDA Credit IDA Grant Number 6088-KG Number D204-KG Bank account number 1299003250022910 1299003250022809 Bank "RSK Bank" OJSC Bank location 80/1 Moskovskaya Street, Bishkek, Kyrgyz Republic Account currency USD USD The Designated accounts of IDA Credit Number 6088-KG and IDA Grant Number D2014-KG were opened in 2019. There were no disbursements related to those in year ended 31 December 2018. 13 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D138-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 5. Statement of Financial Position The Statement of Financial Position discloses assets, liabilities and net assets of the Project as at reporting date. It is prepared in accrual basis that is transactions are recognized when they occur (and not only when cash is received or paid). Note 31 Dec 2018 31 Dec 2017 USD USD ASSETS Cash 6 824,794 324,842 Prepayments (a) - 660,191 Other receivables (c) - 2,920 Total assets 824,794 987,953 LIABILITIES Payables (b) 507,128 325,709 Total liabilities 507,128 325,709 NET ASSETS Cumulative income IDA Credit Number 5907-KG 2,720,813 - IDA Grant Number D138-KG 5,917,893 2,763,271 IDA Credit Number 6088-KG IDA Grant Number D204-KG Government cofinancing 1,623,383 250,862 Other income 28,958 16,280 10,291,047 3,030,413 Cumulative expenses Project expenses 9,972,725 2,367,950 Other expenditures 656 219 9,973,381 2,368,169 Total net assets 317,666 662,244 (a) Prepayments consist of advances for construction works up to 20% of the contract amount, based on bank guaranties. As of 31 Dec 2018 all prepayments were settled. (b) Payable consists of warranty amounts of 5% withhold from contractors' invoices for construction works. (c) Amount from interest account was transferred in Dec 2017 for another Project implemented by the ARIS, and was returned on February 2018. 14 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D1 38-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 6. Cash Underlying 31 Dec 2018 31 Dec 2017 Currency USD USD IDA Credit Number 5907-KG Designated Account USD 142,660 - 142,660 - IDA Grant D138-KG Designated Account USD 666,000 317,077 666,000 317,077 IDA Credit Number 6088-KG Designated Account USD - - IDA Grant Number H204-KG Designated Account USD Other Interest account USD 13,906 7,765 Tender account KGS 2,228 - 16,134 7,765 824,794 324,842 The bank accounts of IDA Credit Number 5907-KG and IDA Grant D1 38-KG are held at CJSC "Kyrgyz investment and Credit Bank" (Bishkek, Kyrgyz Republic). The bank accounts of IDA Credit Number 6088-KG and IDA Grant Number H204-KG were opened in year 2019 at OJSC "RSK Bank" (Bishkek, Kyrgyz Republic). 15 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D1 38-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 7. Project Expenditures 7.1. Project expenditure financing per funds USD For the year ended 31 Dec 2018 Category I Credit aDA Grant IDA Credit IDA Grant Government1 nD138-KG D204-KG cofinancing Inc (3)~~ SN-rat mne Par 2 g 5907-KG 6088-KG 2,578,153 ~~~ 1,503,6913251 5,5,5 (1) Works for the Project2,715 15069 42) Goods, non-consulting services, consuitants' services, - 1,302,020 - 6,791 1,308,811 Training and Operating costs for the Project (3) Sub-grants under Part 2 (g). othProject 13251 Total 2,578,153 2,805,699 1,372,521 6 763,164 USD Cumulative as at 31 Dec 2018 Category IDA Credit IDA Grant IDA Credit IDA Grant Government Other Total Number D138-KG 6088-KG D204-KG cofinancing income 5907-KG 6088-KG (1) Works for the Project 2,578,153 3,366,438 - 1,623,383 7,567,974 (2) Goods, non-consAlting services, consultants' services, - 1,885,456 12 1 897623 Training and Operating costs 12,167 for the Project (3) Sub-grants under Part 2 (g) _ . - of the Project Total 2,578,153 5,251,894 1,623,383 12,167 9,465,597 7.2. Project expenditure budget execution Cumulative Expenditures as at 31 Dec 2018 Total budget Implementation Sub-Category USD USD % (1) Works for the Project 7,567,974 48,584,825 16% (2) Goods, non-consulting services, consultants' services, 1,897,623 22,672,970 8% Training and Operating costs for the Project (3) Sub-grants under Part 2 (g) of the Project - 1,015,277 - Total 9,465,597 72,273,072 13% 16 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D1 38-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 8. Financing 8.1. IDA Credit Number 5907-KG Reporting Cumulative as year at 31 Dec 2018 USD USD Advance/ (advance recovery) 1,000,000 1,000,000 SOE and Summary Report 1,720,813 1,720,813 Total 2,720,813 2,720,813 Total financing budget 12,964,924 Percentage of finance provided as at 31 Dec 2018 21% 8.2. IDA Grant Number D138-KG Reporting Cumulative as year at 31 Dec 2018 USD USD Advance/ (advance recovery) - 1,000,000 SOE and Summary Report 3,154,622 4,917,893 Total 3,154,622 5,917,893 Total financing budget 10,655,177 Percentage of finance provided as at 31 Dec 2018 56% 8,3. IDA Credit Number 6088-KG There were no disbursements under IDA Credit Number 6088-KG during year ended 31 December 2018. 8.4. IDA Grant Number D204-KG There were no disbursements under IDA Grant Number D204-KG during year ended 31 December 2018. 8.5, Government cofinancing Reporting Cumnuiative as year at 31 Dec 2018 USD USD In-cash 1,372,521 1,623,383 Total 1,372,521 1,623,383 Total financing budget 11,936,115 Percentage of finance provided as at 31 Dec 2018 14% 17 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number Dl 38-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG Notes to the special purpose financial statements For the year ended 31 December 2018 (Amounts are shown in US dollars) 9. Other income Reporting Cumulative as year at 31 Dec 2018 USD USD Interest accrued 1,758 12,865 Tender fees 10,920 16,093 Total 12,678 28,958 10. Schedule of Fixed assets The schedule of fixed assets procured and received by ARIS for the Project implementation is follows: 1 January Additions Deductions 31 December 2018 2018 Computers and equipment 30,391 22,884 - 53,275 Vehicle 25,914 - - 25,914 Furniture 538 - 538 56,843 22,884 _______79,727 11. Event after reporting date 11.1. IDA Credit Number 5907-KG The application N 5 in the total amount of 986,429 USD, that consists expenditures relating to the reporting year in the amount of 857,340 was submitted to WB on 5 March 2019 and was approved on 7 March 2019. 11.2. IDA Grant Number D138-KG The application N 10 in the total amount of 508,350 USD, that consists expenditures relating to the reporting year in the amount of 334,000 USD was submitted to WB on 15 April 2019 and was approved on 29 April 2019. 12. Litigations There are no pending litigations related to the Project as at reporting date and as at approval date of these financial statements. 18 Sustainable Rural Water Supply and Sanitation Development Project IDA Credit Number 5907-KG IDA Grant Number D138-KG IDA Credit Number 6088-KG IDA Grant Number D204-KG ANNEX 1. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE ARIS AND DISBURSED BY THE WORLD BANK For the year ended 31 December 2018 (Amounts are shown in US dollars) A. IDA Credit Number 5907-KG Expenditure Category Appi. ARIS WB Difference 1 1,000,000.00 1,000,000.00 - fAdvance! (recovery) 0 1,000,000.00 1,000,000.00 2 382,604.76 382,604.76 3 874,342.38 874,342.38 (1) Works for the Project 4 463,866.05 463,866.05 1,720,813.19 1,720,813.19 Total 2,720,813.19 2,720,813.19 B. IDA Grant Number D1 38-KG Expenditure Category AppI. ARIS WB Difference 5 625,694.80 625,694.80 6 422,495.68 422,495.68 (1) Works for the Project 7 469,594.40 469,594.40 8 611,589.31 611,589.31 2,129,374.19 2,129,374.19 5 57,228.52 5 7,228.52 6 268,932.72 268,932.72 (2) Goods, non-consuting services, consutants' 7 79,863.99 79,863.99 services, Training and Operating costs for the24 Project824,739 287.9 9 370,244.96 370,244,96 1,025,247.58 1,025,247-58 Total 3,154,621.77 3,154,621.77 C. IDA Credit Number 6088-KG There were no disbursements submitted by the ARIS or disbursed by the WB under IDA Credit Number 6088-KG during year ended 31 December 2018. D. IDA Grant Number D204-KG There were no disbursements submitted by the AR15 or disbursed by the WB under IDA Grant Number D204-KG during year ended 31 December 2018. 19