MINISTRY OF HEALTH Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Financial Statements For year ended 31 December 2018 and Report of the Independent Auditors Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Contents Page 1. Statement by the Project management 1 2. Report of the independent auditors 2 3. Statement of financial position 5 4. Statement of sources of funds and expenditures 6 5. Statement of designated accounts 8 6. Notes to the financial statements 10 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Statement of financial position as at 31 December 2018 As at As at Note 31 December 2018 31 December 2017 US$ US$ Current assets Cash and bank balances 3 16,510,744 5,601,065 Advances 4 766,348 667,318 Amounts due from financiers 5 2,029,148 2,830,328 Total assets 19,306,240 9,098,711 Liabilities Amounts due to RGC and financiers 5 (2,029,148) (2,830,328) Net assets 17,277,092 6,268,383 Fund balance at end of the year/period 17,277,092 6,268,383 The accompanying notes form an integral part of these financial statements. 5 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Statement of sources of funds and expenditures for year ended 31 December 2018 Cumulative Period from period from Year ended 31 December 2018 1 July 2016 to 1 July 2016 to Note IDA MDTF PHRD RGC Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Receipts International Development Association ("IDA") 6 4,984,769 - - - 4,984,769 4,473,761 9,458,530 Multi-Donor Trust Fund 6 - 11,148,316 - - 11,148,316 4,609,374 15,757,690 PHRD 6 - - 241,475 - 241,475 - 241,475 Counterpart fund 6 - - - 27,113,541 27,113,541 23,972,663 51,086,204 Other income 7 - - - 3,780 3,780 - 3,780 4,984,769 11,148,316 241,475 27,117,321 43,491,881 33,055,798 76,547,679 Expenditure by categories Service delivery grants 9 819,735 1,366,224 - 14,442,815 16,628,774 11,192,901 27,821,675 Health equity fund grants ("HEF") 10 2,250,000 3,750,000 - 7,867,233 13,867,233 12,979,317 26,846,550 Eligible expenditure programs 11 435,867 726,446 - - 1,162,313 2,037,687 3,200,000 Goods, works, consultant operating costs and training 12 253,816 420,024 27,867 123,145 824,852 577,510 1,402,362 3,759,418 6,262,694 27,867 22,433,193 32,483,172 26,787,415 59,270,587 6 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Statement of sources of funds and expenditures (continued) for year ended 31 December 2018 Cumulative Period from period from Year ended 31 December 2018 1 July 2016 to 1 July 2016 to Note IDA MDTF PHRD RGC Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Excess of sources of funds over expenditures 1,225,351 4,885,622 213,608 4,684,128 11,008,709 6,268,383 17,277,092 Fund balance at beginning of the year/period 1,152,632 (922,312) (300) 6,038,363 6,268,383 - 6,268,383 Fund balance at end of the year/period 2,377,983 3,963,310 213,308 10,722,491 17,277,092 6,268,383 23,545,475 Expenditures by components 8 Strengthening Health Services Delivery 819,735 1,366,224 - 14,442,815 16,628,774 11,192,901 27,821,675 Improving Financial Protection and Equity (''HEF'') 2,250,000 3,750,000 - 7,867,233 13,867,233 12,979,317 26,846,550 Ensuring Sustainable and Responsive Health System 689,683 1,146,470 27,867 123,145 1,987,165 2,615,197 4,602,362 3,759,418 6,262,694 27,867 22,433,193 32,483,172 26,787,415 59,270,587 The accompanying notes form an integral part of these financial statements. 7 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Statement of designated accounts for year ended 31 December 2018 Cumulative Period from period from Year ended 31 December 2018 1 July 2016 to 1 July 2016 to IDA MDTF PHRD Total 31 December 2017 31 December 2018 Note US$ US$ US$ US$ US$ US$ Receipts 6 International Development Association ("IDA") 4,548,902 - - 4,548,902 3,709,628 8,258,530 Multi-Donor Trust Fund - 10,421,870 - 10,421,870 3,335,820 13,757,690 PHRD - - 241,475 241,475 - 241,475 4,548,902 10,421,870 241,475 15,212,247 7,045,448 22,257,695 Expenditure by categories Service delivery grants 9 819,735 1,366,224 - 2,185,959 423,680 2,609,639 Health equity fund grants ("HEF") 10 2,250,000 3,750,000 - 6,000,000 5,814,238 11,814,238 Eligible expenditure programs 11 - - - - - - Goods, works, consultant operating costs and training 12 253,816 420,024 27,867 701,707 577,510 1,279,217 3,323,551 5,536,248 27,867 8,887,666 6,815,428 15,703,094 Excess of sources of funds over expenditures 1,225,351 4,885,622 213,608 6,324,581 230,020 6,554,601 Fund balance at beginning of the year/period 1,152,632 (922,312) (300) 230,020 - 230,020 Fund balance at end of the year/period 2,377,983 3,963,310 213,308 6,554,601 230,320 6,784,621 8 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Statement of designated accounts (continued) for year ended 31 December 2018 Cumulative Period from period from Year ended 31 December 2018 1 July 2016 to 1 July 2016 to IDA MDTF PHRD Total 31 December 2017 31 December 2018 Note US$ US$ US$ US$ US$ US$ Expenditure by components Strengthening Health Services Delivery 8 819,735 1,366,224 - 2,185,959 423,680 2,609,639 Improving Financial Protection and Equity (''HEF'') 9 2,250,000 3,750,000 - 6,000,000 5,814,238 11,814,238 Ensuring Sustainable and Responsive Health System 11 253,816 420,024 27,867 701,707 577,510 1,279,217 Total expenditures 3,323,551 5,536,248 27,867 8,887,666 6,815,428 15,703,094 Represented by: Cash and bank balances 3 8,578,796 3,007,627 8,578,796 Advances 4 4,953 52,421 4,953 Amount due RGC 5 (2,029,148) (2,830,028) (2,029,148) Amount due to IDA and MDTF - (300) - Amount due from PHRD - 300 - 6,554,601 230,320 6,554,601 The accompanying notes form an integral part of these financial statements. 9 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements for the year ended 31 December 2018 These notes form an integral part of and should be read in conjunction with the accompanying financial statements. 1. Background and activities The Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) (“the Project”) was established under the International Development Association (“IDA”) with the Financing Agreement Number 5813-KH and the Multi-Donor Trust Fund (“MDTF”) with the Grant Agreement Number TF0A3114 dated 26 August 2016 between the Royal Government of Cambodia (“RGC”), represented by the Ministry of Economy and Finance (“MEF"). The IDA (is also acting as administrator of the Multi-Donor Trust Fund for the Cambodia Health Equity and Quality Improvement Project) of the World Bank, whereby IDA agreed to provide a loan amounting to Special Drawing Rights SDR21,700,000 (equivalent to US$30,000,000) and a grant amounting to US$3,500,000. On 23 May 2017, the grant agreement was amended to increase the grant amount to US$20,000,000. According to the Project Appraisal Document (“PAD”), MDTF is expected to provide the grant totalling US$50,000,000. The Project became effective for implementation from 9 November 2016 with the total funding of US$175.2 million. However, the MEF through the letter dated 4 August 2016 approved to use the RGC’s fund before the effective date. Therefore, the Project followed the PAD which published on 28 April 2016, stating the starting the date from 1 July 2016. The Project is expected to be completed by 30 June 2021. In addition to the Financing Agreement dated on 26 August 2016, IDA acting as administrator of the grant provided by the Government of Japan under the Policy and Human Resources Development Fund (“PHRD”) also agreed to provide a grant amounting to US$1,000,000 with the grant number TF0A2562 dated 25 September 2016. IDA loan is repayable on each 1 April and 1 October commencing from 1 October 2022 and ending on 1 April 2054 with principal amount of each credit repayable equal 1.5625%. The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the loans funded by IDA, the allocations of the amounts of the Financing to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: 10 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 1. Background and activities (continued) Category Amount of the Percentage of expenditures financing allocated to be financed No. Item (expressed in SDR) (inclusive of taxes) 1 Service delivery grants 5,400,000 100% of the Financing's agreed (“SDGs”) under Part 1 of the share of the cost specified in the Project approved Annual Operational Plan (“AOP”) for each Fiscal Year (“FY”) 2 Health equity fund (“HEF”) 8,100,000 100% of the Financing's agreed Grants under Part 2 of the share of the cost specified in the Project approved Annual Operational Plan (“AOP”) for each Fiscal Year (“FY”) 3 Eligible Expenditure Programs 4,100,000 100% of the Financing's agreed under Part.3 .1 of the Project share of the cost specified in the approved Annual Operational Plan (“AOP”) for each Fiscal Year (“FY”) 4 Goods, works, non- consulting 4,100,000 100% of the Financing's agreed services, consultants' services, share of the cost specified in the Operating Costs and Training approved Annual Operational under Parts 3.2 and 3.3 of the Plan (“AOP”) for each Fiscal Project Year (“FY”) 5 Emergency Expenditures - 100% under Part 4 of the Project Total 21,700,000 11 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 1. Background and activities (continued) Financing of the Project by the MDTF according to the allocations and withdrawals of the grant proceeds is as follows: Category Amount of the Percentage of expenditures grant allocated to be financed No. Item (expressed in USD) (inclusive of taxes) 1 Service delivery grants 5,000,000 100% of the Grant’s agreed (“SDGs”) under Part 1 of the share of the cost specified in the Project approved Annual Operation Plan (“AOP”) for each financial year. 2 Health equity fund (“HEF”) 9,000,000 100% of the Grant's agreed Grants under Part 2 of the share of the cost specified in the Project approved Annual Operation Plan (“AOP”) for each financial year. 3 Eligible Expenditure Programs 4,500,000 100% of the Grant's agreed under Part.3 .1 of the Project share of the cost specified in the approved Annual Operation Plan (“AOP”) for each financial year. 4 Goods, works, non- consulting 1,500,000 100% of the Grant's agreed services, consultants' services, share of the cost specified in the Operating Costs and Training approved Annual Operation Plan under Parts 3.2 and 3.3 of the (“AOP”) for each financial year. Project Total 20,000,000 Financing of the Project by the PHRD according to the allocations and withdrawals of the grant proceeds is under the Project’s component “Ensuring Sustainable and Responsive Health Systems” amounting to US$1,000,000. 12 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 1. Background and activities (continued) The RGC will contribute US$94.2 million and the allocations and withdrawals of the contribution is as follows: The Royal Government of Project components Cambodia (expressed in US$) 1. Strengthening Health Service Delivery 54,200,000 2. Improving Financial Protection and Equity 40,000,000 Total 94,200,000 The objective of the Project is to improve access to quality health services for targeted population groups with protection against impoverishment due to the cost of health services in the Kingdom of Cambodia. The Project consists of the following components/parts: Part 1: Strengthening Health Service Delivery 1.1 Provision of Service Delivery Grants to health centers for the implementation of the Minimum Package of Activities, based on the quantity and quality of services provided. 1.2 Provision of SDGs to hospitals for the implementation of the Complementary Package of Activities, based on improvements in the quality of care at the secondary level of the health system. 1.3 Provision of SDGs to Provincial Health Departments (“PHD”) and Operational Districts (“OD”) for carrying out of a programme of activities designed to strengthen the health facility capacity building and oversight functions of the PHDs and ODs. Part 2: Improving Financial Protection and Equity Carrying out of a program of activities designed to improve healthcare protection for the poor through the provision of HEF Grants to health facilities for the financing of user fees and other associated health care related costs of eligible poor beneficiaries. 13 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 1. Background and activities (continued) The Project consists of the following components/parts: (continued) Part 3: Improving Financial Protection and Equity 3.1 Carrying out of a programme of activities designed to improve the supply side readiness of the health sector and strengthen the institutions in charge of implementing the Project’s activities, including the implementation of comprehensive pre-service and in-service training programs for health workers, equipment of health facilities to meet minimum standards for the provision of obstetric and neonatal care, carrying out of enhanced health service quality monitoring, improved timeliness of SDG and HEF payments, and establishment of sustainable health purchasing arrangements, all through the provision of additional HEF Grants upon the achievement of the Disbursement Linked Indicator (“DLI”) Targets set forth in Schedule 4 to this Agreement. 3.2 Carrying out of civil works identified in the MoH's civil works plan for 2016 - 2021 for the construction and/or rehabilitation of health facilities, including, inter alia, maternity wards and other infrastructure for emergency maternity and neonatal services, and provision of necessary health facility equipment. 3.3. Provision of technical and operational assistance for the coordination, administration, monitoring, evaluation, verification and audit of the Project. Part 4: Contingent Emergency Response Provision of immediate response to an Eligible Crisis or Emergency, as needed. 14 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 2. Significant accounting policies (a) Basis of accounting The financial statements, which are expressed in the United States Dollars (“US$”), have been prepared in accordance with a modified cash basis of accounting. This is a basis of accounting that is designed to meet the requirements of the Project; it is not designed to produce financial statements that are compatible with International Financial Reporting Standards. Under this basis of accounting, income is recognised when funds are received in cash and expenditure is recognised when payments are made rather than when it is incurred, except for the advanced payments that are initially recognised as a receivable and only recognised as expenditure when they have been liquidated by supporting invoices. The financial statements present sources and uses of funds and the related financial information in relation to the IDA fund withdrawals and disbursements from the Project's designated accounts. (b) Statement of designated accounts The statement of designated accounts is prepared in accordance with the financing agreement and is purely used to receive and disburse for expenditure funded by IDA, MDTF and PHRD financing proceeds. (c) Non-expendable equipment The cost of non-expendable equipment is charged to the statement of sources of funds and expenditures upon acquisition. For control and management purposes, a memorandum account for non-expendable equipment is maintained by way of a non-expendable equipment listing. (d) Foreign currency transactions The Project executes transactions and maintains its accounting records primarily in the US$. Transactions in currencies other than US$ are converted into US$ at the rates of exchange prevailing on the transaction dates. Fund balances in currencies other than US$ are translated into US$ at the open market exchange rates at the reporting date. All foreign exchange differences are recognised in the statements of sources of funds and expenditures and designated accounts. 15 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 3. Cash and bank balances As at 31 December 2018 Pooled designated As at account* RGC Total 31 December 2017 U$ US$ US$ US$ Cash at banks 8,578,629 7,931,948 16,510,577 5,600,189 Cash on hand 167 - 167 876 8,578,796 7,931,948 16,510,744 5,601,065 * It represented the one pooled designated account combined for IDA Credit, MDTF grant and PHRD. Cash at banks comprises bank accounts used for designated account fund and the government counterpart fund maintained in a current account with the National Bank of Cambodia, bear no interest and earmarked specifically for the use of the Project. 4. Advances As at 31 December 2018 IDA and MDTF As at and PHRD * RGC Total 31 December 2017 US$ US$ US$ US$ Hospital Service Department - - - 45,365 Planning and Health Information 4,953 - 4,953 7,056 Advances to National Hospital (“NH”), Provincial Referral Hospital (“PRH”) and Referral Hospital (“RH”) - 761,395 761,395 614,897 4,953 761,395 766,348 667,318 * It represented the one pooled designated account is combined for IDA Credit, MDTF grant and PHRD. 16 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 5. Amounts due from/(to) financiers and RGC As at 31 December 2018 As at IDA and MDTF PHRD RGC Total 31 December 2017 Note US$ US$ US$ US$ US$ Amounts due from IDA and MDTF (a) - - 2,029,148 2,029,148 2,830,028 PHRD - - - - 300 Sub-total - - 2,029,148 2,029,148 2,830,328 Amount due to RGC (a) (2,029,148) - - (2,029,148) (2,830,028) IDA and MDTF - - - - (300) Sub-total (2,029,148) - - (2,029,148) (2,830,328) (2,029,148) - 2,029,148 - - (a) These represent payments from RGC with amounting to US$2,029,148 for the Project activities to be financed by IDA and MDTF. On 7 May 2019, the Project settled this amount to RGC. 17 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 6. Receipts Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to Note IDA MDTF PHRD RGC Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Fund received – designated accounts (a) 4,548,902 10,421,870 241,475 - 15,212,247 7,045,448 22,257,695 Disbursement link indicators (b) 435,867 726,446 - - 1,162,313 2,037,687 3,200,000 Fund receipt from RGC (c) - - - 27,113,541 27,113,541 23,972,663 51,086,204 4,984,769 11,148,316 241,475 27,113,541 43,488,101 33,055,798 76,543,899 (a) This represents “fund” received from the IDA, MDTF and PHRD transferred directly to the Project's designated accounts maintained by General Department of National Treasury. (b) Disbursement link indicators represent the amounts supported by IDA and MDTF upon achievements of certain indicators agreed between the Project and the World Bank. (c) This comprise cash transferred from the National Treasury of Cambodia to the Project and Health Facilities bank accounts. 18 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 7. Other income Other income represents the income earned by selling bidding documents. The amounts of US$3,780 were subsequently transferred to RGC’s bank account on 28 March 2019. 8. Expenditures by components Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to IDA MDTF PHRD RGC(*) Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Strengthening Health Services Delivery 1.1 Service delivery grants - Health Centres 346,283 577,138 - 923,421 1,846,842 482,489 2,329,331 1.2 Service delivery grants – Hospital 309,991 516,651 - 826,642 1,653,284 226,004 1,879,288 1.3 Service delivery grants – 1.4 PHDs and ODs 163,461 272,435 - 435,896 871,792 138,867 1,010,659 1.5 Service delivery grants – Fixed Lump Sum Grant - - - 12,256,856 12,256,856 10,345,541 22,602,397 Sub-total 819,735 1,366,224 - 14,442,815 16,628,774 11,192,901 27,821,675 19 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 8. Expenditures by components (continued) Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to IDA MDTF PHRD RGC(*) Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Improving Financial Protection and Equity (“HEF”) 2,250,000 3,750,000 - 7,867,233 13,867,233 12,979,317 26,846,550 Ensuring Sustainable and Responsive Health System 3.1 Health System Strengthening 431,066 718,443 - - 1,149,509 2,037,687 3,187,195 3.3 Project Management Monitoring and Evaluation 258,617 428,027 27,867 123,145 837,656 577,510 1,415,167 Sub-total 689,683 1,146,470 27,867 123,145 1,987,165 2,615,197 4,602,362 3,759,418 6,262,694 27,867 22,433,193 32,483,172 26,787,415 59,270,587 20 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 8. Expenditures by components (continued) (*) These expenditures represent the following: • Amounts of performance based grants paid directly by the Project to Health facilities’ bank accounts; and amounts of fixed lump sum grant paid directly from the National Treasury of Cambodia to the Provincial Referral Hospital, Referral Hospital, and Health Centre. • Amounts of health equity fund paid by the Project directly to the bank accounts of National Hospital, Provincial Referral Hospital, Referral Hospital, and Health Centre. 9. Service delivery grants Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to IDA MDTF PHRD RGC Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Performance grants 819,735 1,366,224 - 2,185,959 4,371,918 847,360 5,219,278 Fixed-lump sum grants - - - 12,256,856 12,256,856 10,345,541 22,602,397 819,735 1,366,224 - 14,442,815 16,628,774 11,192,901 27,821,675 21 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 9. Service delivery grants (continued) Service delivery grants represents the service made to the Health Facilities to support costs of goods, minor works, service, training, operating costs and staff performance bonuses required for the implementation of Part 1 of the Project. 10. Health equity fund grants (“HEF”) Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to IDA MDTF PHRD RGC Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Medical 1,921,883 3,203,139 - 6,720,012 11,845,034 11,601,148 23,446,182 Non-Medical 294,621 491,035 - 1,030,077 1,815,733 1,378,169 3,193,902 Promoter 33,496 55,826 - 117,144 206,466 - 206,466 2,250,000 3,750,000 - 7,867,233 13,867,233 12,979,317 26,846,550 22 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 11. Eligible expenditure programs Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to IDA MDTF PHRD Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ Disbursement linked indicators 1 - - - - 800,000 800,000 Disbursement linked indicators 3 75,000 125,000 - 200,000 300,000 500,000 Disbursement linked indicators 4 - - - - 400,000 400,000 Disbursement linked indicators 5 93,750 156,250 - 250,000 250,000 500,000 Disbursement linked indicators 6 267,117 445,196 - 712,313 287,687 1,000,000 435,867 726,446 - 1,162,313 2,037,687 3,200,000 Disbursement link indicators represent the amounts supported by IDA and MDTF upon achievements of certain indicators agreed between the Project and the World Bank. 23 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 12. Goods, works, consultant, operating costs and training Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to IDA MDTF PHRD RGC Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Goods Vehicles 59,954 99,925 - - 159,879 106,738 266,617 Consultant service National consultants 60,927 102,115 - - 163,042 138,796 301,838 International consultants 27,188 45,312 - - 72,500 - 72,500 Accommodation 782 503 - - 1,285 1,850 3,135 Sub - total 88,897 147,930 - - 236,827 140,646 377,473 24 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 12. Goods, works, consultant, operating costs and training (continued) Cumulative Period from period from Year ended 31 December 2018 1 July 2017 to 1 July 2017 to IDA MDTF PHRD RGC Total 31 December 2017 31 December 2018 US$ US$ US$ US$ US$ US$ US$ Operational costs Accommodation 12,538 21,698 1,698 - 35,934 55,553 91,487 Contract staff 11,465 16,109 - - 27,574 17,917 45,491 Repairs and maintenance 2,919 4,864 - - 7,783 6,226 14,009 Transportation 7,830 12,876 - - 20,706 16,989 37,695 Incremental staff 619 460 - 123,145 124,224 544 124,768 Office supplies 636 1,060 - - 1,696 3,806 5,502 Advertising 4,137 6,895 - - 11,032 6,255 17,287 Communication 1,134 2,062 - - 3,196 2,714 5,910 Bank charge 5,625 9,376 - - 15,001 26,754 41,755 Others 4,860 8,100 4,500 - 17,460 2,949 20,409 Sub - total 51,763 83,500 6,198 123,145 264,606 139,707 404,313 Training 53,202 88,669 21,669 - 163,540 190,419 353,959 253,816 420,024 27,867 123,145 824,852 577,510 1,402,362 25 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 13. Designated accounts and withdrawal applications 13.1 Statement of designated accounts As at 31 December 2018 As at IDA MDTF PHRD Total 31 December 2017 US$ US$ US$ US$ US$ Balance as at beginning of the year/period 1,152,632 (922,312) (300) 230,020 - Add Total fund received during the year/period 4,548,902 10,421,870 241,475 15,212,247 7,045,448 Less Total funds withdrawn for expenditures during the year/period (1,294,403) (5,536,248) (27,867) (6,858,518) (3,985,100) Total RGC’s funds withdrawn for expenditure Supported by IDA and MDTF (Note 5) (2,029,148) - - (2,029,148) (2,830,028) 2,377,983 3,963,310 213,308 6,554,601 230,320 26 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 13. Designated accounts and withdrawal application (continued) 13.2 Summary of withdrawal applications Goods, works, Health Equity Eligible Consultant, Initial Service Fund Grants Expenditure operating costs, Withdrawal advance delivery grants ("HEF") Programs training Total application number Date US$ US$ US$ US$ US$ US$ 2018 IDA Fund Advance 27-Jun-2018 4,548,902 - - - - 4,548,902 DLI 06-Dec-2018 - - - 435,867 - 435,867 Sub total 4,548,902 - - 435,867 - 4,984,769 MDTF Fund Advance 28-Mar-2018 2,241,580 - - - - 2,241,580 Advance 29-Jun-2018 8,180,290 - - - - 8,180,290 DLI 13-Dec-2018 - - - 726,446 - 726,446 Sub total 10,421,870 - - 726,446 - 11,148,316 PHRD Fund Advance 14-Feb-2018 241,475 - - - - 241,475 Total 15,212,247 - - 1,162,313 - 16,374,560 27 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 13. Designated accounts and withdrawal application (continued) 13.2 Summary of withdrawal applications (continued) Goods, works, Health Equity Eligible Consultant, Service Fund Grants Expenditure operating costs, Withdrawal Initial advance delivery grants ("HEF") Programs training Total application number Date US$ US$ US$ US$ US$ US$ 2017 IDA Fund Advance No. 001 19-Apr-17 3,709,628 - - - - 3,709,628 DLI 5-Jun-17 - - - 375,000 - 375,000 DLI 26-Jun-17 - - - 389,133 - 389,133 Sub total 3,709,628 - - 764,133 - 4,473,761 MDTF Fund Advance No. 001 19-Apr-17 3,335,820 - - - - 3,335,820 DLI 5-Jun-17 - - - 625,000 - 625,000 DLI 26-Jun-17 - - - 648,554 - 648,554 Sub total 3,335,820 - - 1,273,554 - 4,609,374 Total 7,045,448 - - 2,037,687 - 9,083,135 28 Ministry of Health Cambodian Health Equity and Quality Improvement Project (“H-EQIP”) IDA/RGC Financing Agreement Number 5813-KH/ MDTF Grant Number TF0A3114 and PHRD Grant Number TF0A2562 Notes to the financial statements (continued) for the year ended 31 December 2018 14. Commitments As at 31 December 2018, the Project has the following commitments: As at As at 31 December 2018 31 December 2017 US$ US$ Contracted, but not yet paid: Consulting services 2,462,255 800,140 29