l .. 88688 r ARMENIAN SOCIAL INVESTMENT FUND r ARMENIAN SOCIAL INVESTMENT FUND III PROJECT ( IDA Credit 4238-AM IDA Credit 4548-AM (Additional financing) ffiRD Credit 7847-AM (Second additional financing) [ IDA Credit 5071-AM (Third additional financing) f. l SPECIAL PURPOSE FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT For the year ended 31 December 2013 L c [ [ [ l YEREVAN May 2014 u [ ( ) r CONTENT r Page THE BOARD OF THE ASIF ....................................................................................................................... 3 r INDEPENDENT AUDITOR'S REPORT :.......................................... ....................................................... 4 STATEMENT OF CASH RECEIPTS AND PAYMENTS ......................................................................... 6 STATEMENT OF USES OF FUNDS BY PROJECT ACTIVITY ............................................................. 7 I SUMMARY OF SUMMARY REPORTS AND SOEs ............................................................................... 8 STATEMENT OF DESIGNATED ACCOUNT .......................................................................................... 9 l NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS ................................................... II ANNEX I. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE PROJECT AND DISBURSED BY THE WORLD BANK ......................................................................................... 24 l [ [ u lr111enian 'irJ< ra/ Jnve,·fmenl Fund Ill l'roie< 1 Proj,•cr Special l'urp01e Fimmcial Statement\' For !he year ~·nded 31 /)ecemher 20/J ]/.J.j [ l r THE BOARD OF THE ASIF ( The Chairman Hovik Abrahamyan Prime Minister of the Republic of Armenia l Members I Armen Gevorgyan Deputy Prime minister of the Republic of Armenia, Minister of Territorial Administration [ Gagik Khachatryan Minister of Finance of the Republic of Armenia Narek Sargsyan Minister of Urban Development ofthe Republic of Armenia Artem Asatryan Minister of Labor and Social Affairs ofthe Republic of Armenia Armen Ashotyan Minister of Education and Science of the Republic of Armenia Taron Margaryan Mayor of Yerevan General Director of representation in Armenia of charitable Jirayr Markosyan organisation "Aznavour pour 1' Armenia" Ara Vardanyan Executive Director of All-Armenian Fund Levon Karaqashyan Representative of organization "Knights ofVardan" l Arpi Vardanyan Director of AGBU Armenia representation [ Ashot Kirakosyan Executive director of Armenian Social Investment Fund [ l L [ -lr1•teman Sch·ta/ lnves/melll Fund Ill f'roje,/ Pmjt't.'l Special !'urpo.1e Filial/cia/ Statements For !he Y<'ill" mdcui 3 I /)eccmber 20 IJ .1/l..J L I r. "UOU-Ufif'.l}.f1S" Un}£! r "80S-AUDIT" LTD r INDEPENDENT AUDITOR'S REPORT N 32 [ On the special purpose financial statements ofArmenian Social Investment Fund III Project for the year ended 31 December 2013 [ To the Management of the Armenian Social Investment Fund (the ASIF) We have audited the accompanying special purpose financial statements of the Armenian Social Investment Fund III Project (the Project), the statement of cash receipts and payments, the statement of uses offunds by project activity, the summary of summary reports and SOEs, t he statement of designated account for the year then ended 31 December 2013, and a I - summary of significant accounting-policies and other explanatory notes. Management's Responsibility for the Financial Statements The ASIF management is responsible for the preparation and fair presentation of these special purpose financial statements in accordance with International Public Sector Accounting Standards (IPSAS): Financial Reporting Under the Cash Basis of Accounting, issued by the International Federation of Accountants (IFAC), and Financial Management Manual for World Bank Financed Investment Operations, and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatements, whether due to fraud or error. c Auditor's Responsibility Our responsibility is to express an opinion on these special purpose financial statements based on our audit'. We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the special purpose financial statements are free from material misstatement. An audit involves performing procedures to obtain reasonable audit evidence about the amounts and disclosures in the special purpose financial statements. The procedures selected [ depend on the auditor's judgment ·including the assessment of the risk of material misstatement of the special purpose financial statements, whether due to fraud or error. In making those assessments, the auditor considers internal control relevant to the entity's [ preparation and fair presentation of the special purpose financial statement 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 entity's internal control. An audit also [ includes the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the special purpose financial statements. l2rmm 1nrnJ.wp P~qGbu UuwGu~ Uung~wgLj_wo UG11wli =!=!; p. bfll..wO 0037, U.StJqflWOJwO 38/55; "'bn.' (+37410) 2011 51; :bwpu· (+37410) 20 11 50; www.sosaudit.am; tL-Ltmum· info@sosaudit.am An Associate of the Crowe Horwath Business Alliance 38/55A.Tigranyan, 0037 Yerevan, RA; Tel.: (+37410) 20 11 51; Fax: (+37410) 20 11 50; www.sosaudit.am; E-mail: info@sosaudit.am r I r "U OU -Ufii'-L1P.S" U till! "SOS-AUDIT" LTD We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. · Opinion · [ In our opinion, 1. the special purpose financial statements present fairly in all material respects cash receipts and payments, designated accountsmovements and its balances of the Project for the year ended 31 December 2013 in accordance with International Public Sector Accounting Standards (IPSAS): Financial Reporting Under the Cash Basis of Accounting, and Financial Management Manual for World Bank Financed Investment Operations; 2. funds have been used in all material respects in accordance with the conditions of the Credit Agreements IDA 4238-AM, 4548-AM (additional financing) and 5071-AM (third additional financing) between the Republic of Armenia and International Development Association, and IBRD 7847-AM (second additional financing) between the Republic of Armenia and International Bank of Reconstruction and Development, with due attention to economy and efficiency, and only for the purpose for which they were provided; 3. supporting documents, records and accounts have been maintained to support claims for reimbursement of expenditures incurred. The expenditures included in the withdrawal applications and reimbursed against are eligible for financing under the IDA Credit Agreement 5071-AM (third additional financing), and IBRD Credit Agreement 7847-AM (second additional financing). Emphasis of matters Without qualifying our opinion we draw your attention to Note 9 of these special purpose financial statements which disclosed that financing under IDA 4238-AM, IDA 4548-AM and IBRD 7847-AM Credit Agreements were completed as at reporting date. [ SOS-Audit LLC 7 May 2014 [ Gnel Khachatryan, FCCA Auditor l- • r-i r-- ~ L_ j r-1 -- ;. ~ - - - STATEMENT OF CASH RECEIPTS AND PAYMENTS Armenian Social Investment Fund Ill Project IDA Credits 4238-AM, 4548-AM (additional financing) and 5071-AM (third additional financing) IBRD Credit 7847-AM (second additional financing) For the year ended 31 December 2013 lnUSD Actual Planned Variance Description Reporting vear Cumulative Reporting year Cumulative Reporting year Cumulative ~pening Cash Balance 1,307,104 - ~ources of Funds IDA 4238-AM - 24,711,159 IDA 4548-AM - additional financing - 7,988,525 lBRD 7847-AM- second additional financing - 7,000,000 IDA 5071-AM -third additional financing 5,056,585 7,172,088 RA Government (1,401) 6,230,802 . RA Government -additional financing (298) 1,335,722 RA Government - second additional financing - 1,378,821 RA Government - third additional financing 1,693,045 2,419,820 Community contribution 275,127 4,050,518 Sponsors 62,720 373,198 Reimbursement of PPF - 1,909,171 Total 7,085,778 64,569,824 Adjustments 39,153 (61,461) ' Uses of Funds I. Works 5.495,258 39,854,055 6,730,923 41,089,720 1,235,665 1,235,665 2. Goods 822,802 6,216,370 589,077 5,982,645 (233,725) (233,725) ; 3. Consultants' services and training 253,734 3,151,045 730,500 3,627,811 476,766 476,766 4. Operating costs 633,015 4,575,864 718,500 4,661 ,349 85,485 85,485 5. Reimbursement of PPF ~ -....---:~ - 1,628,213 - 1,628,213 - - 6. Works, Goods, Consultants' services and training -IB!3D~Zt\~~=;t,.-~ 75,350 7,913,440 - 7,838,090 (75,350) (75,350) 7. Front-end fee //5.' ~;-. .. ~-!. o· !/, .._'? ~ ....~ .,.----.._., (~ c,.>.\.-\ 7,280,159 63,356,487 8,769,000 64,845,328 1,488,841 . 1,488 841 !closing Cash Balance k~k!"'.._._. /~ /"-,"" '(Y~':\.J,J5J,876 1,151,876 - - . ·- .....- ....... "' - - .. , "--" - .. - - -;~ oft~e\~~~:r\i~;i;l-~u! Ji\fl]i );· ts~ _ ;g~--c.~'hi statemen) ./~ -~ accompanymg notes form an integral part ~ ... ~ ' \ ~ ~.\~,t_) ' · :; t'::::!: :-.!. ....-~<::} {j ~~I~ \?{1-1-~,> ~: '"'~' ~ ~n!lllCial D~rector . Ashot ~arakosyan D1rector • , '? , Q~:~;~~·· \.\::J>./, 'lr, * <-''h~"{\t,._·· """'·· Levon ~u~yan. and Admomstratove . l'roJ<< r ·'r•euall'ttrt•os\ I wu:t, _ :,rf 'lmemc:llr' Jhr tht \.tart Jtd:: ,I 3 i I''\ ,•m. ', ,. .!fJi3 •.; ti ·_ (_j r-1 - ('--:l Lj L:l :--"j r-"j rJ _, - - j STATEMENT OF USES OF FUNDS BY PROJECT ACTIVITY Armenian Social Investment Fund Ill Project IDA Credits 4238-AM, 4548-AM (additional financing), and 507 l-AM (third additional financing) IBRD Credit 7847-AM (second additional financing) For the year ended 31 December 2013 lnUSD Actual Planned Variance Project Activities Reporting year Cumulative Reporting year Cumulative Reporting year Cumulative 1. Community Investments 6,617,418 57,916,450 7,875,388 59,174,420 1,257,970 1,257,970 Works 5,563,901 48,197,356 6,730,923 49,364,378 1,167,022 1,167,022 School furniture 805,152 6,454,560 589,077 6,238,485 (216,075) (216,075) Support to MP/vehicles - 156,175 - 156,175 - - CB&TA 248,365 3,108,359 555,388 3.415.382 307,023 307,023 2. Local level institutional strengthening, monitoring and evaluation - 171,902 150,000 321,902 150,000 150,000 Training in management - 171,902 150,000 321,902 150,000 150,000 3. Project Management 662,741 5,250,635 743,612 5,331,506 80,871 80,871 CB&TA toASIF 5,370 61,872 - 56.502 (5,370) (5,370) Special studies - 199,627 - 199.627 - - GA&M 657.371 4,989,136 743,612 5,075,377 86,241 86,241 Front-end fee - 17,500 - 17,500 - - Total Project Expenditures 7,280,159 63,356,487 8,769,000 64,845,328 1,488,841 " 1,488,841 Armenian Social!m·•·::/m,·J;/ Fu11d Ill Proje(:! /'roj,•cf SpN:ial Purpuse !- iJmf/c:ial Slalemert/s fhr !Itt.' )/tYJr endc.·J 3i I Jeo.:e111/Jt'r 2013 7,'2.f [ SUMMARY OF SUMMARY REPORTS AND SOEs Armenian Social Investment Fund JJJ Project r. JBRD Credit 7847-AM (second additional financing) For the year ended 31 December 2013 lnUSD ( E'9J_enditure category Application Works, Goods, Consulting services number* and training 1 30 42,069.30 31 63,859.10 105,928.40 (*)For the period from 01.01.2013 to 28.02.2013 ( Armenian Social Investment fund Ill Project IDA Credit 50 71 -AM (third additional financing) For the year ended 31 December 2013 JnUSD Expenditure category Application Works, Goods, Consulting Operating costs Total number services and training 1 2 7 393,950.68 41,980.33 435,931.01 8 180,902.63 23,062.63 203,965.26 9 170,986.96 23 ,344.52 194,331.48 10 212,366.70 24,752.61 237,119.31 II 220,700.00 21,581.12 242,281.12 12 414,137.39 23,430.68 437,568.07 13 333,585.13 33,132.48 366,717.61 14 572,753.26 24,001.59 596,754.85 15 500,847.63 24,665.22 525,512.85 16 515,279.04 25,795.12 541,074.16 17 436,603.15 25,581.17 462,184.32 18 590,979.45 22,165.98 613,145.43 4,543,092.02 313,493.45 4,856,585.47 l [ l Armenian Sodal/m•es/menl Fund Ill f'rc.~jeCI [ Pmjecf Speciall'urpose Fimzncial Statement.\ fi;r th~;.· year ended 31 December 20 IJ l r. STATEMENT OF DESIGNATED ACCOUNT Armenian Socia/ Investment Fund Ill Project IDA Credits 4238-AM, 4548-AM (additional financing) and 5071-AM (third additional financing) IBRD Credit 7847-AM (second additional financing) For the year ended 31 December 2013 lnUSD Designated IDA Credit IDA credit IBRD Credit IDA Credit Account 4238-AM 4548-AM 7847-AM 5071-AM Currency USD USD USD USD Account number 900000907031 900000907056 900000907072 900000907015 I Bank Location Central Treasury Meliq Adamyan Street I, Yerevan, Republic of Armenia, 00 I 0 r IDA IDA Credit Credit IBRD Credit IDA credit 4238-AM 4548-AM 7847-AM 5071-AM Total 1. Opening balance as at 01.01.2013 63,176 362,224 425,400 2. Add: opening discrepancy* (8,735) (169) 613 1,845 (6,446) 3. IDA advance/replenishment 5,056,585 5,056,585 4. Less: Refund to IDA from DA 5. Amount advanced to DA (8,735) (169) _ ____::6.:::.c3,'-'-7.:::.:89;_ __..::;5.!..:,4..::2.:::.:0,~65=-4.:_ 5,475,539 6. DA closing balance as at 31.12.2013 173,626 173,626 7. Add: Amount of eligible expenditures paid 63,859 5,246,563 5,310,422 c 8. Less: interest earned (if credited to DA) 9. Total advance accounted [ for 63,859 5,420,189 5,484,048 I 0. Discrepancy (5)-(9) * (8,735) (169) (70) 465 (8,509) [ [ Ar11wnia.'1 SrJ< wllnwstmenl Fund IIi l'roje, 1 L !'rr!ir.'c'f S(WC wll'uq•o.\·e Flml/lcial Stmemcll/< J<•r rht· yc11r mded 3 I /)ecember 2(JJ 3 [ r l r STATEMENT OF DESIGNATED ACCOUNT (Continued) r * Discrepancy consists of as follows: In USD ( IDA Credit IDA credit IBRD C•·edit IDA credit 4238-AM 4548-AM 7847-AM 5071-AM Total r Opening discrepancy Balance at current account Balance at cash desk (a) 963 (a) (a) (b) 1,559 2,522 16 16 Refund to IDA from current account (5,722) (5,722) r FX revaluation gain/(loss) (3,976) (169) 613 270 (3,262} Total opening discrepancy (8,735) ____j169) 613 1,845 (6,446} Closing discrepancy Balance at current account 131 131 Balance at cash desk 66 66 Refund to IDA from current account (5,722) (5,722) Transfer to interest account (c) 963 963 FX revaluation gain/(loss) (3,976) (169) (70) 268 {3,947} Total closing discrepancy {8,735} {169} {70} 465 {8,509) (a) As at 31.12.2013 financing under IDA 4238-AM, IDA 4548-AM and IBRD 7847-AM credit agreement were completed (Note 9). (b) Financing under IDA 5071-AM credit agreement will be completed on 31 March 2015. (c) Current account balance in the amount of 963 USD that was generated from interest accrued has been transferred from IDA 4238-AM into IDA 5071-AM interest account on 08.01.2013. [ l [ lmwman ~·rh ia/ flll'eSI!IIC:l/1 rzmd /J/ f'roi<'er }(J/3 r l f The Project is implemented by the Armenian Social Investment Fund, established by a Decree ofthe Government of the Republic of Armenia, the sole founder, as an autonomous non-profit agency. 1.3. Budget [ As at 31 December 2013 updated budget of Project financing is 68,4 70,609 USD. Budget disclosure by expenditures category is presented in next page (in USD). For budget formation l the following matters were taken into consideration: (a) Credit IDA 4238-AM and IDA 4548-AM budgets in SDR were updated on 31 January [ 2011. (b) Budget USD equivalents for Credits IDA 4238-AM, IDA 4548-AM and IDA 5071- AM, with underling currency of SDR, are calculated based on cumulative funds received in USD plus, if any, USD equivalent of undisbursed funds in SDR as at [ reporting date. There were no undisbursed funds under Credits IDA 4238-AM, IDA 4548-AM and IBRD 7847-AM as at 31 December 2013. SDRIUSD rate as at 31.12.2013 is set at 1.54000 (31.12.2012: 1.53692). (c) Budget of financing from Sponsors and Communities are equal to the amounts received as at reporting date. [ L -lrmenianSocial/nve,,·rmenr Fund Ill f'roiecf 0 Prof•'•'' Speciall'urpose Fimurcial Starenumts for th,• yeur ,•nded 31 December 2013 IF.N [ r---'l c:::J c= r-: - r:-J t:"J L'1 c---J - l""1 .....--... ___, --, • I IBRD IDA third additionai5071-AM IDA4238-AM IDA additional 4548-AM 7847-AM Sl!btotal IDA and Updated Updated IBRD Initial Initial Updated Initial Initial Updated Category/ Financing (a) (a) Initial Updated Initial USD USD USD USD equivalent USD USD SDR SDR SDR SDR equivalent equivalent equivalent equivalent equivalent (b) (b) (b) USD SDR USD Works 11,194,000 11,361,032 16,564,213 17,604,524 4,820,000 4;912,000 7,415,385 7,551,972 - 6,022,000 9,331,140 9,221,029 34,377,525 Goods 265,000 410,000 403,057 4,571,243 2,366,000 2,516,380 3,500,000 3,866,133 200,000 200,000 307 692 302,053 - Consultant Services and training 1,386,000 1,222,732 2,050,000 1,901,368 180,000 88,000 276,923 135,557 - 353,000 550,860 539,877 2,576,802 Operating Costs 940,000 940,000 1,391,000 1,450,578 - - - - 440,000 460,000 708,000 703,561 2,594,139 Refund of project Preparation 0 0 0 1,288,959 Advance 1,014,000 859,856 1,500,000 1,288,959 - - - - - Works, goods, consultant's services, 0 0 0 6,542,500 including training for the project - - - - - - - - 6,542,500 Front-end fee - - - - - - - - 17,500 0 0 0 I7,5oo 1 Total Amount 16,900,000 · 16,900,000 25,00S,2I3 26,III,562 5,200,000 5,200,000 8,000,000 7,989,582 7,000,000 7,100,000 11,000,000 10,867,523 si,968,668 1 Commu- Sponsors RA Government cofinancin1 nity co- co- Category/ Financing financing financ:int:: IDA IDA WRD IDA5071- (c) (c) 4238-AM 4548-AM 7847-AM AM Subtotal Total USD liSD USD USD USD USD USD USD Works 3,235,799 1,140,828 - 1,920,960 3,750,134 279,345 10,327,066 44,704,591 Goods - 987,179 86 785 - 49,500 - 1,123,464 5,694,707 Consultant Services and training 578,205 78,107 - 221,540 - - 877,852 3,454,654 Operating Costs 1,391,000 - 440,000 708,000 - - 2,539,000 5,133,I39 Refund of project Preparation Advance 480,000 - - - - - 480,000 1,768,959 Works, goods, consultant's services, including training for the project - - 794,706 - 265,997 93,856 1,154,559 7,697,059 Front-end fee - - - - - - - I7,500 I Total Amount 6,672,183 1,305,720_ - _1,234,7~ 2,900,000 -4,016,131 373,201 16,501,94J- 68,47Q,§02.J Armenian Soc:iallm·c·~fm<'ill hmd 11/l'row< 1 Pl'f?iecr Speci.lll'urp,J.\e Finanr:ial SI,I!c/11• •·I' iiir tile vear ended J I [ lt't ember .:!0 13 13:24 l 1.4. Financing percentage [ Armenian Social Investment Fund III Project is financed from the following sources: International Development Association (IDA Credit 4238-AM), International Development Association (IDA Credit 4548-AM (additional financing)), International Bank of Reconstruction and Development (IBRD Credit 7847-AM, (second additional financing)), [ International Development Association (IDA Credit 5071-AM (third additional financing)), Government of the Republic of Armenia, Government of the Republic of Armenia (additional financing), I Government of the Republic of Armenia (second additional financing), Government of the Republic of Armenia (third additional financing), Communities, I Sponsors. Credit financing rates for expenditure categories of the Project are as follows: [ IDA Credit IDA Credit IBRD Credit IDA Credit c Works Goods 4238-AM 78% 78% 4548-AM 78% 78% 7847-AM - - 5071-AM 78% 78% Consultant Services and training 78% 78% - 78% Operating Costs 50% - 50% 50% Works, Goods, Consultants' services and training - - 85% - 1.5. Project Implementati01r The Project is implemented by the Armenian Social Investment Fund (the ASIF). The ASIF has been established by a Decree N 162 dated 11.04.2000 of the Government of the Republic of Armenia, the sole founder, as an autonomous non-profit agency to assist in the [ rehabilitation of small-scale infrastructure through community initiated and demand-based activities. The Board, chaired by the Prime-Minister of the Republic of Armenia, is a supreme governing body of the AS IF. The ASIF registered address is: 31 Ulnetsy Street, Yerevan, 0037, Republic of Armenia. l [ r Armeniun So•ial lnvesunenl Fund Ill l'rojeCI L Project Special Purpose fi'illwtcial Sraremenrs for rhe Y<'c1r t'nded 31 f)ecemht'r 2013 14,2-1 r 2. Summary of significant accounting policies 2.1 Preparation and presentation offinancial statements The special purpose financial statements are prepared in accordance with the International Public Sector Accounting Standard (IPSAS): Financial Reporting Under the Cash Basis of Accounting, developed by the International Federation of Accountants (IFA C) and presented [ in accordance with Financial Management Manual for World Bank Financed Investment Operations: RM 3 -Financial Reporting and Auditing (March 201 0). [ The special purpose project financial statements consist of: Statement of cash receipts and payments, Statement of uses of funds by project activity, ( Summary of summary reports and SOEs, Statement of Designated account, Notes to the special purpose financial statements, including summary of significant I accounting policies and other explanatory notes. The principal accounting policies applied in the preparation ofthese 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 The special purpose financial statements are prepared and presented using the cash basis of accounting. Cash basis means a basis of accounting under which transactions and other events are recognized only when cash or its equivalent is received or paid. Financial statements prepared under the cash basis provide information about the sources of cash raised during the period, the purpose for which cash was used and the cash balances at the reporting date. 2.3 Reporting currency c The Project financial statements are presented in United States Dollars (USD). 2.4 Foreign currency transactions Foreign currency is a currency other than the reporting currency of the Project. Project accounts are maintained in USD and Armenian Drams (AMD). [ Transactions in foreign currencies are translated to presentation currency at exchange rates at the dates of the transactions. Settlement rate of foreign currency over functional currency established by the Central Bank of the Republic of Arn1enia (the CBA) is taken as the [ exchange rate. Transactions denominated in AMD are translated into USD as follows: [ Contributions of the Republic of Armenia expressed in AMD are presented in USD at the official exchange rate defined by the CBA at the date of transfer. c Payments to contractors and suppliers expressed in AMD are presented in USD at the exchange rates defined by the CBA at the date of payment. lrmenitln Social lnvesunent l'und Ill l'roj,•, 1 [ •cr Special l'urpo.,,: f<'il/(lllt:ial Sratemcnt' l'roj•. jiw the Y<'clr t'llded 31 l)ecemh,•r 20 I 3 The exchange rate defined by the CBA as at 31 December 2012 is: USD I = 403.58 AMD. The exchange rate defined by the CBA as at 31 December 2013 is: USD I = 405.12 AMD. 2.5 Budgeting Annual budgets for funding and expenditures are based on approved budget (as updated) of the project agreement (Note 1.3.). [ Expenditure budget is created based on actual accumulated expenditures for the last period plus the updated procurement plans for the period. Financing budget per fund source is created based on actual accumulated expenditures for the last period per funding source plus the share of funding for the coming period budgeted [ expenditures. l 2.6 Taxes All applicable taxes are paid in accordance with tax regulations ofthe Republic of Armenia. [ [ [ [ Armeni<' Filtallcial Srmemems jhr tht' yt'or ended 31 /)ecemher 2013 17-':'4 Q l 5. Funds Funding including PPF is as follows: Cumulative as at 31.12.2013 Cumulative as at 31.12.2012 Funding PPF for PPF for ASIF III ASIFIII Total ASIF III ASIF III Total r IDA 4238-AM IDA 4548-AM- additional financing USD 24,711,159 1,400,404 .126,111,563 7,988,525 USD - USD 7,988,525 USD 24,711,159 7,988,525 USD 1,400,404 - USD 26,111,563 7,988,525 I lBRD 7847-AM- second additional financing IDA 5071-AM- third 7,000,000 - 7,000,000 7,000,000 - 7,000,000 additional financing 7,172,088 - 7,172,088 2,115,503 - 2,115,503 ( Government of RA Government ofRA- 6,230,802 317,615 6,548,417 6,232,203 317,615 6,549,818 additional financing 1,335,722 - 1,335,722 1,336,020 - 1,336,020 Government ofRA- I second additional financing 1,378,821 - 1,378,821 1,378,821 - 1,378,821 r Government ofRA- third additional financing 2,419,820 - 2,419,820 726,775 - 726,775 Community Contributions 4,050,518 191,152 4,241,670 3,775,391 191,152 3,966,543 Sj)onsors Contributions 373,198 - 373,198 310,478 - 310,478 Total Funds 62,660,653 1,909,171 64,569,824 55,574,875 1,909,171 57,484,046 c [ [ l [ Ar111eni.m Soda/ 1nvewnen/ Fund 111 !'r(Jj<'< 1 f'rojt'ct Speciall'urpose Fliwncial Swwment\ for th,• y,•ar t'nded 31 December 201 J f ,...-- -· r:--1 c-1 LJ ~ ~ ~ - rJ ~ ~ S.l.Disbursement procedures Financing, including PPF, from WB was provided through the following disbursement procedures: Disbursement procedure For the year 2013 Cumulative as at 31.12.2013 IBRD IBRD IDA Credit IDA Credit Credit Credit 7847-AM, 5071-AM, IDA Credit 7847-AM, IDA Credit 4548-AM, 2ad 3rd 4548-AM, 2 ad 5071-AM, 3nl IDA Credit additional additional additional IDA Credit additional additional additional 4238-AM financing financin~ financin~ Total 4238-AM financin~ financin~ financin~ Total Advances/ (advance repayments) - - (105,928) 200,000 94,072 - (1,057) - 1,000,000 998,943 SOE procedure - - 58,063 1,820,010 -1,878,073 18,798,783 7,912,086 3,571,596 2,433,931 32,716,396 Summary Sheet - - 47,865 3,036,575 3,084,440 7,312,780 77,496 3,428,404 3,738,157 14,556,837 _Total - - - J 5,056,585 5,056,585 26,111,563 7,988,525 7,000,000 7,172,088 48,272,176 rund 11/l'rojen Arm,:lliOil S<>c:iuiii/Vl'SIIJI('nt h·. :iect Sp..:cial PwpMe Financial SWI<'II!ems !;Jr!ite yeur ended]! /)(~(·etnber 2013 /')24 r:J ~ L. ; c-1 C"'"-: ,_....., ~ l1 --- r-i - :-:::) :---:1 --- 6. Cumulative Project Expenditures a) Project expenditures under the main categories of expenditures are presented at the Statement of cash receipts and payments. b) Project expenditures under the main project heading are presented at the Statement of uses of funds by project activity. c) Project expenditures summarized based on funding sources are as follows: Year 2013 USD RA Govern- RA ment RA Category Govern- RA second Government ment Government additional third Sponsors IDA IDA IBRD IDA cofin a- additional cofinan- additional Community cofinan- 4238-AM 4548-AM 7847-AM 5071-AM ncing cofinancing cing co financing cofinancing cing Total I. Works - - - 4,192,976 5,932 - - 765,732 472,356 58,262 5,495,258 2. Goods - - - 542,590 - - - 280,212 - - 822,802 3. Consultants' services and training - - - 194,624 1,150 - - 54,894 - 3,066 253,734 4. Operating costs - - - 316,373 - - - 316,373 269 - 633,015 6. Works, Goods, Consultants' services and training -IBRD 7847-AM - - 63,859 - - - 2,457 - 9,034 - 75,350 Total - - 63,859 5,246,563 7,082 - 2,457 1,417,211 481,659 61,328 7,280,159 i A 1'1/ICI/iall Sociui 111~\'Siiih'/11 h!lld Ill l'rojeCI p,·,)jec:l Sp..·;,:ia/ PwiX•se Fincm<'ial .'i!meutems 1~·),. the year ended 3 i I )er.:·c·u;her 2013 ];J.}-4 L l -- r:--J t::::j r-'j -- _.... ~ - Cumulative as at 31.12.2013 USD RA Govern- ment RA Category RA second Government RA Govern men additional third Sponsors IDA IDA IBRD IDA Government t additional cofin an- additional ·Community cofinan- 4238-AM 4548-AM 7847-AM 5071-AM cofinancin~ cofinancin~ cin~ cofinancin~ cofmancin~ cin~ Total 1. Works 18,525,112 7,551,158 - 5,636,081 3,379,563 1,208,670 - 1,025,060 3,457,159 266,303 41,049,106 2. Goods 3,949,245 302,053 - 581,440 1,113,823 85,194 - 291,170 - - 6,322,925 3. Consultants' services and training 1,918,900 135,557 - 385,662 569,466 46,873 - 108,776 - 8,718 3,173,952 4. Operating costs 1,688,466 - 439,999 394,814 1,519,505 - 439,993 394,815 1,972 - 4,879,564 6. Works, Goods, Consultants' services and training -IBRD 7847-AM - - 6,542,501 - - - 917,273 - 361,134 92,532 7,913,440 7. Front-end-fee - - 17,500 - - - - - - - 17,500 Total 26,081,723 7,988,768 7,000,000 6,997,9~1__ _6,58~,357 1,340,737 __L357 ,26§_ 1,819,821 3,820,265_ 367,553 63,356,487 Armc'lliall Social litvestme/11 J·u11d 1//l'roF·u Pruject Special PttJJhl!ie l;irwncial S!atentems tiJr 1he year ended 31 Oe,YIIlber 21) 13 l/. _.,..; l r 7. Adjustments USD 31.12.2013 31.12.2012 Currency revaluation gain/{loss) (101,493) (104,465) Exchange gains/(loss) (7,023) (7,035) I Interest accrued in bank accounts- payable to RA Government Other pavables/(advances) Total 47,498 (443) 11,330 (444) (61,461) (100,614) [ 8. Project budget management r Cumulative as at 31.12.2013 Budget Implementation Uses of Funds USD USD 0 /o I. Works 39,854,055 44,704,591 89% 2. Goods 6,216,370 5,694,707 109% 3. Consultants' services and training 3,151,045 3,454,654 91% 4. Operating costs 4,575,864 5,133,139 89% 5. Refunding ofPPF 1,628,213 1,768,959 92% 6. Works, Goods, Consultants' services and training -IBRD 7847-AM 7,913,440 7,697,059 103% 7. Front-end fee 17,500 i 17,500 100% Total 63,356,487 68,470,609 93% 9. Funds closing 9.1. IDA 4238-AM and IDA 4548-AM (additional financing), The financing under the IDA 4238-AM (Closing date: 31.03.2012) and IDA 4548-AM (Closing date: 30.06.2011) credits were completed as at reporting date. Regarding to those credits: • No financing received during the reporting year ending 31.12.2013; • No expenditures incurred during the year ended 31.12.2013; • No withdrawal applications were submitted during the year ended 31.12.2013; • There are no cash balances as at 31.12.20 13; r • There are no receivable or payable amounts; • We are not aware about any pending or existing litigations. l 9.2. ffiRD 7847-AM (second additional financing) The expenditures Closing date is 31 October 2012 and Grace period for submitting [ withdrawal applications is 28 February 2013. As at date of signing these special purpose financial statements, regarding to IBRP Credit 7847-AM: c • No expenditures were incurred after 31 October 2012: o The payments made during the reporting year in the total amount of USD 75,350 related to the expenditures incurred before the Closing date; Armenian Social Investment Fund Ill /'r(Jjec f Projecr Special l'urpose Finc111cial Staremenrs for the Y•'Gr ended 31 {)eceml::er 2013 f l [ • No withdrawal applications were submitted after 28 February 20 13: • No cash balance existed at the Designated Account as at 28.02.2013 and after then; • There are no advances or payables outstanding as at reporting date; • We are not aware about any pending or existing litigations. I 10. Events after the reporting date 10.1 Reimbursement of expenditures The Project expenditures for the December 2013 registered at the application #20 of IDA 5071-AM in the total amount of USD 825.7.9.5.68 was submitted to WB on 22 January 2014 and documented on 23 January 2014. r I 11. Litigations There are no pending litigations related to the Project as at reporting date and as at approval [ date of these special purpose financial statements. [ [ [ ·lrmenian S(}( tal inves1men1 Fund Ill Proie< I !'rojeer Special l'ur{lose Fim111cial ,'l'taremen/,1 for th,• yt'ar ended 3 I necem/:>,,r 20 I3 c \ l. ANNEX 1. RECONCILIATION BETWEEN THE AMOUNTS SUBMITTED BY THE PROJECT AND DISBURSED BY THE WORLD BANK Armenian Social Investment Fund /II Project IDA Credit 507 l-AM (third additional financing) For the year ended 3 I December 2013 In USD Expenditure Category Appl. AS IF WB Difference r Advances (Recovery) I. Works, Goods, Consulting services, 19 7 200,000.00 200,000.00 393,950.68 200,000.00 201!t_OOO.OO 393,950.68 - including training 8 180,902.63 180,902.63 - I 9 10 170,986.96 212,366.70 170,986.96 212,366.70 - - 11 220,700.00 220,700.00 - [ 12 13 414,137.39 333,585.13 414,137.39 333,585.13 - - 14 572,753.26 572,753.26 - - [ IS 16 500,847.63 515,279.04 500,847.63 515,279.04 - 17 436,603.15 436,603.15 - 18 590,979.45 590,979.45 - 4 543,092.02 4~543,092.02 2. Operational costs 7 41,980.33 41,980.33 - 8 23,062.63 23,062.63 - 9 23,344.52 23,344.52 - 10 24,752.61 24,752.61 - II 21,581.12 21,581.12 - 12 23,430.68 23,430.68 - 13 33,132.48 33,132.48 - 14 24,001.59 24,001.59 - 15 24,665.22 24,665.22 - 16 25,795.12 25,795.12 - 17 25,581.17 25,581.17 - 18 22,165.98 22,165.98 - 313,493.45 313,493.45 Total 5_,_056~85.47 5,056,585.4 7 Armenian Social Investment Fund /II Project JBRD Credit 7847-AM (second additional financing) For the period 01.01.2013-28.02.2013 JnUSD Expenditure Category Appl. AS IF WB Difference Advances (recovery) 30 ( 42,069 .30) 31 (63,859.10) ( 105,928.40) 1. Works, Goods, Consulting services 30 42,069.30 42,069.30 - - l and training 31 63,859.10 105,928.40 105 928.40 63,859.10 10~28.40 - .c -lrmenian So, iallnveSI!nelll Fund ill Proiec 1 Projea Specmll'urpo.l·c! Fi/1(11/cial Statements (or the .war e11ded 3 I December 20 I3