International Bank for Reconstruction and Development The Serving People, Improving Health Project, financed from the funds of the Loan # 8475-UA Special Financial Statements for the period from June 15, 2015 to December 31, 2016 Together with Independent Auditor's Report 1BDO CONTENTS: Independent auditor's report _ _ __ __ _ _ __ 3 Summary of Sources and Uses of Funds ______6. Uses of funds by the Loan Parts__ _ ______ 7 Schedule of Withdrawals from the Loan Account - 8 Schedule of Withdrawals from Designated Account (component 1) -9 Designated Account Statement (component 1) _ _ 10 Schedule of Withdrawals from Designated Account (components 2, 3) 11 Designated Account Statement (components 2,3) _ -12 Statement of withdrawals through SOE procedures _ __ _ _13 Statement on Factual Expenses in National Currency_ _ _ 14 Reconciliation between the PCSU and the Bank records 15 Notes to the special financial statements 16 World Bank Audit Documentation Checklist 33 2 www.bdo.ua BDO LLC Tel.: +38 044 393 26 87 201-203, Kharkivske Road, 10th floor Fax: +38 044 393 26 91 Kyiv e-mail: bdo@bdo.kiev.ua Ukraine, 02121 Tel.: +38 056 370 30 43 4, Andriya Fabra Str. Fax: +38 056 370 30 45 Dnipro e-mail: dnipro@bdo.com.ua Ukraine, 49000 Independent auditor's report To the Management of the Ministry of Health of Ukraine (MOH) Opinion We have audited the accompanying special financial statements related The Serving People, Improving Health Project (the Project) financed from the funds of the Loan # 8475 - UA of the International Bank for Reconstruction and Development (the Bank), as at December 31, 2016 and for for the period from June 15, 2015 to December 31, 2016, namely: > Summary of sources and application of funds; > Statement of application of funds by the Loan Parts; > Detailed information of expenditures; > Statement of withdrawals through SOE procedures; > Designated accounts statements; > And also the Notes to the special financial statements. In our opinion, the special financial statements give true and fair view of the sources and uses of funds of the Loan # 8475 - UA as at December 31, 2016, as well as resources and expenditures at the end of this reporting period according to the cash accounting method described in Note 2.2, and in accordance with the generally accepted accounting principles and practice and relevant instructions provided by the Bank. Co-financing has been provided and used in accordance with the relevant financial conditions, with due respect to saving and efficiency, and only for the purposes for which they were allocated. Goods and services were procured in accordance with the relevant general terms and conditions, relevant financial arrangements and a letter on the use of funds, including special provisions of the Bank's Procurement Guidelines. All necessary supporting documents, records and invoices were made for all Project activities, including expenditures under the Statements of Expenditure. There is a clear correlation between the accounting data and the financial statements provided to the World Bank during the reporting period. In addition, with respect to the SOEs for the reporting period, adequate supporting documentation was maintained to confirm applications to the Bank for reimbursements of the expenditures incurred, and that the expenditures stated in the withdrawal applications are to be financed in accordance with the Loan Agreement # 8475 - UA. In our opinion, the financial statements on the designated accounts give true and fair view of financial position of the designated accounts for the Loan # 8475 - UA as at December 31, 2016 according to the generally accepted accounting principles and practice and relevant general terms of the financial agreements. Emphasis of matter We draw your attention to Note 1 to the special financial statements, which indicates that the closing date of the Loan is September 30, 2020. We also draw your attention to Note 2.5 to the special financial statements, which indicates that this report has been drawn up for a period longer than one financial year, in accordance with the Bank's requirements. BDO LLC, a Ukrainian LLC, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the 3 international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. IBDO Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities far the audit of the special financial statements section of our report. We are independent of the MOH in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code), and ethical requirements applied in Ukraine to our audit of special financial statements and fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibility of the management of Ministry of Health of Ukraine Management of MOH is responsible for the preparation and fair presentation of these special financial statements in accordance with the generally accepted accounting principles and practice and relevant instructions provided by the Bank and for such internal control as management determines is necessary to enable the preparation of special financial statements that are free from material misstatement, whether due to fraud or error. Management of MOH is responsible for overseeing the Project's reporting process. Auditor's responsibilities for the audit of the special financial statements Our objectives are to obtain reasonable assurance about whether the special 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 a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these special financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * identify and assess the risks of material misstatement of the special financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control; * evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; * conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the special financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern; * evaluate the overall presentation, structure and content of the special financial statements, including the disclosure of information, as well as whether the special financial statements reliably present the underlying transactions and events. We communicate with management 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. 4 IBDO We also provide to management that we have followed the relevant ethical requirements as to independence, and we notify them of all relations and other issues that might reasonably be considered as affecting our independence and, where applicable, relevant precautionary measures. The audit was performed under the supervision of Tetyana V. Byvala. Partner Byvala T. V. On behalf of BDO LLC Managing partner Balchenko S.O. 14 August 2017 Kyiv, Ukraine 5 Summary of Sources and Uses of Funds for the period from June 15, 2015 to December 31, 2016 in US dollars Actual Planned Variance 2015-2016 Cumulative 2015-2016 Cumulative 2015-2016 Cumulative Opening balance - - Designated account B - - Designated account C - FINANCING: Funds from IBRD 8,642,953 8,642,953 Co-financing 5,846,749 5,846,749 TOTAL 14,489,702 14,489,702 PROJECT EXPENDITURES: (1) Category 1 Goods, works, non-consulting services, consultants' services and Operating Costs for Part 1 of the Project 1,392,314 1,392,314 2,493,654 2,493,654 1,101,340 1,101,340 (2) Category 2 Goods, works, non-consulting services, consultants' services and Operating Costs for Part 2 of the Project 210,887 210,887 258,051 258,051 47,164 47,164 (3) Category 3 Goods, non- consulting services, consultants' services and Operating Costs for Part 2 of the Project 385,412 385,412 463,477 463,477 78,065 78,065 Front-end Fee 536,825 536,825 536,825 536,825 - - Expenses on account of co- financing (Category 1) 5,846,749 5,846.749 5,744,496 5,744,496 (102,253) (102,253) TOTAL 8,372,187 8,372,187 9,496,503 9,496,503 1,124,316 1,124,316 Closing balance of funds 6,117,516 6,117,516 - - - Designated account B 204,246 204,246 - Designated account C 170,289 170,289 - National currency accounts in STSU (component 1) see Note 5 5,732,355 5,732,355 National currency accounts in STSU (components 2, 3) see Note 5 10,626 10,626 - See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 6 Uses of funds by the Loan Parts for the period from June 15, 2015 to December 31, 2016 in US dollars Actual Planned Variances For the Accumula For the Accumula For the Accumula period ted period ted period ted Part 1 Improving service delivery at the local level (1) Category 1 Goods, works, non- consulting services, consultants' services and Operating Costs for Part 1 of the Project to be implemented by: (a) Vinnitsa Oblast (state administration and city council) 151,554 151,554 279,140 279,140 127,586 127,586 (b) Volyn Oblast 195,219 195,219 152,848 152,848 (42,371) (42,371) (c) Dnipropetrovsk Oblast 192,746 192,746 319,789 319,789 127,043 127,043 (d) Zakarpattya Oblast 122,416 122,416 118,095 118,095 (4,321) (4,321) (e) Zaporizhzhya Oblast 127,519 127,519 108,828 108,828 (18,691) (18,691) (f) Lviv Oblast 212,481 212,481 361,612 361,612 149,131 149,131 (g) Poltava Oblast 219,618 219,618 744,314 744,314 524,696 524,696 (h) Rivne Oblast 170,761 170,761 409,028 409,028 238,267 238,267 Part 1 total 1,392,314 1,392,314 2,493,654 2,493,654 1,101,340 1,101,340 Part 2 Strengthening Ministry of Health governance (2) Category 2 Goods, works, non- consulting services, consultants' services and Operating Costs for Part 2 of the Project 210,887 210,887 258,051 258,051 47,164 47,164 Part 2 total 210,887 210,887 258,051 258,051 47,164 47,164 Part 3 Project management, and monitoring and evaluation (3) Category 3 Goods, non- consulting services, consultants' services and Operating Costs for Part 3 of the Project 385,412 385,412 463,477 463,477 78,065 78,065 Part 3 total 385,412 385,412 463,477 463,477 78,065 78,065 Front-end Fee 536,825 536,825 536,825 536,825 - Expenses on account of co- financing (Category 1) 5,846,749 5,846,749 5,744,496 5,744,496 (102,253) (102,253) PROJECT EXPENDITURES TOTAL 8,372,187 8,372,187 9,496,503 9,496,503 1,124,316 1,124,316 SUMMARY BY PARTS: Improving service delivery at the local level 1,392,314 1,392,314 2,493,654 2,493,654 1,101,340 1,101,340 Strengthening Ministry of Health governance 210,887 210,887 258,051 258,051 47,164 47,164 Project management, and monitoring and evaluation 385,412 385,412 463,477 463 ,477 78,065 78,065 Front-end Fee 536,825 536,825 536,825 536,825 - - Expenses on account of co- financing (Category 1) 5,846,749 5,846,749 5,744,496 5,744,496 (102,253) (102,253)1 PROJECT EXPENDITURES TOTAL 8,372,187 8,372,187 9,496,503 9,496,503 1,124,316 1,124,316| See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 7 Schedule of Withdrawals from the Loan Account for the period from June 15, 2015 to December 31, 2016 in US dollars Application---Pamn--- numberto Category Date of Withdrawal Payment- number Currency Amount Equivalent USD FEF 4 15.06.2015 USD 536,825 536,825 1 DA-B 13.10.2015 USD 150,000 150,000 2 DA-C 13.10.2015 USD 289,485 289,485 3 DA-B 30.12.2015 USD 360,000 360,000 4 DA-C 26.02.2016 USD 945,700 945,700 7 DA-C 04.05.2016 USD 464,930 464,930 9 DA-B 14.11.2016 USD 215,000 215,000 10 DA-C 14.11.2016 USD 1,233,200 1,233,200 12 DA-C 20.12.2016 USD 4,395,600 4,395,600 14 2 30.12.2016 USD 52,213 52,213 Total 8,642,953 8,642,953 Summary schedule by categories: Category 1 total - Category 2 total 52,213 Category 3 total - FEF 536,825 DA-B total 725,000 DA-C total 7,328,915 Total 8,642,953 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 8 Schedule of Withdrawals from Designated Account (component 1) for the period from June 15, 2015 to December 31, 2016 in US dollars --- Payment -- Number Category Date of Withdrawal Currency Amount 1 STSU 27.12.2016 USD 2,600,497 2 STSU 22.12.2016 USD 1,609,488 3 STSU 05.12.2016 USD 16,796 4 STSU 17.11.2016 USD 1,199,083 5 STSU 05.05.2016 USD 543,372 6 STSU 04.03.2016 USD 865,948 7 STSU 26.01.2016 USD 7,801 7 STSU 22.10.2016 USD 281,684 Total: 7,124,669 Summary schedule by category: Category 1 total STSU 7,124,669 Total: _____ 7,124,669 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 9 Designated Account Statement (component 1) for the period from June 15, 2015 to December 31, 2016 in US dollars Account No 25137120055000 Bank JSC "Ukreximbank" Address Ukraine, 03150, Kyiv, Antonovicha str., 127 Relevant loan Loan Agreement # 8475-UA Currency US dollars Balance on 15/06/2015 - Replenishment of the Bank 7,328,915 Total inflows 7,328,915 Deduct: Final amount of funds withdrawal 7,124,669 Bank services - Total used funds 7,124,669 Balance on 31/12/2016 204,246 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 10 Schedule of Withdrawals from Designated Account (components 2, 3) for the period from June 15, 2015 to December 31, 2016 in US dollars Number Category Date of ----- Payment ----- Withdrawal Currency Amount 1 STSU 14.12.2016 USD 49,400 2 STSU 21.11.2016 USD 24,600 3 STSU 01.11.2016 USD 36,200 4 STSU 12.10.2016 USD 15,863 5 STSU 10.10.2016 USD 32,417 6 STSU 26.08.2016 USD 31,771 7 STSU 23.08.2016 USD 38,272 8 STSU 11.08.2016 USD 25,305 9 STSU 31.05.2016 USD 22,000 10 STSU 05.05.2016 USD 48,000 11 STSU 08.04.2016 USD 33,000 12 STSU 24.03.2016 USD 14,558 13 STSU 16.03.2016 USD 27,290 14 STSU 10.02.2016 USD 26,910 15 STSU 22.12.2015 USD 10,300 15 STSU 10.12.2015 USD 45,620 16 STSU 06.11.2015 USD 30,205 17 STSU 20.10.2015 USD 43,000 Total: 554,711 Summary schedule by category: Category 2 total Category 3 total STSU 554 ,711 Total: 554,711 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 11 Designated Account Statement (components 2,3) for the period from June 15, 2015 to December 31, 2016 in US dotlars Account No 25136110055000 Bank JSC "Ukreximbank" Address Ukraine, 03150, Kyiv, Antonovicha str., 127 Relevant loan Loan Agreement # 8475-UA Currency US dollars Balance on 15/06/2015 Replenishment of the Bank 725,000 Total inflows 725,000 Deduct: Final amount of funds withdrawal 554,711 Total used funds __554,711 Balance on 31/12/2016 170,289 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 12 Statement of withdrawals through SOE procedures for the period from June 15, 2015 to December 31, 2016 in US dollars Application Category Total number 1 2 3 1. Expenditures actually incurred during 2015-2016 Total: 1,392,314 158,674 385,412 1,936,400 2. Applications submitted to the World Bank and reimbursed in the period 15.06.2015 - 31.12.2016 3 18,846 51,742 70,588 5 A 128,611 128,611 6 - 13,925 38,857 52,782 8 17,887 37,858 55,745 11 417,513 - 417,513 TOTAL: 546,124 50,658 128,457 725,239 3. Table of variances in Project expenditures for 2016 between the Bank and Project Consultancy Support Unit (PCSU) records as at December 31, 2016 Category Total 1 2 3 Reimbursed as per Bank's records 546,124 50,658 128,457 725,239 Amount not claimed for reimbursement (846,190) (108,016) (256,955) (1,211,161) According to PCSU's records 1,392,314 158,674 385,412 1,936,400 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 13 Statement on Factual Expenses in National Currency for the period from June 15, 2015 to December 31, 2016 in US dollars Expenditures byategories ----- Payment ----- USD Equivalent ______________ ______________ Currency A mo u n t Currency (1) Category 1 Goods, works, non-consulting services, consultants' services and Operating Costs for Part 1 of the Project UAH 35,157,672 1,392,314 (2) Category 2 Goods, works, non- consulting services, consultants' services and Operating Costs for Part 2 of the Project UAH 3,961,800 158,674 (3) Category 3 Goods, non-consulting services, consultants' services and Operating Costs for Part 3 of the Project UAH 9,593,465 385,412 Total expenditures: 48,712,937 1,936,400 Co-financing ----- Payment ----- USD Equivalent Currency Amount Currency (1) Category 1 Goods, works, non-consulting services, consultants' services and Operating Costs for Part 1 of the Project UAH 142,765,622 5,846,749 (2) Category 2 Goods, works, non- consulting services, consultants' services and Operating Costs for Part 2 of the Project UAH (3) Category 3 Goods, non-consulting services, consultants' services and Operating Costs for Part 3 of the Project UAH Total expenditures: 142,765,622 5,846,749 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 14 Reconciliation between the PCSU and the Bank records for the period from June 15, 2015 to December 31, 2016 in US dollars Cat According to PCSU for Expenditures not yet As per the World Bank's egory 2015-2016 claimed for reimbursement records total for 2016 1-A 151,554 77,604 73,950 1-B 195,219 111,335 83,884 1-C 192,746 113,273 79,473 1-D 122,416 62,453 59,963 1-E 127,519 99,354 28,165 1-F 212,481 129,747 82,735 1-G 219,618 148,562 71,056 1-H 170,761 103,862 66,899 2 210,887 108,017 102,870 3 385,412 256,955 128,457 TOTAL: 1,988,613 1,211,162 777,452 The Loan Amount under the Agreement 214,729,837 Deduct: Project expenditures: (1) Category 1 Goods, works, non-consulting services, consultants' services and 1,392,314 Operating Costs for Part 1 of the Project 12) Category 2 Goods, works, non- consulting services, consultants' services and Operating Costs for Part 2 of the Project (3) Category 3 Goods, non-consulting services, consultants' services and 385,412 Operating Costs for Part 3 of the Project Front-end Fee 536,825 Total Project expenditures: (2,525,438) Designated account B 204,246 Designated account C 170,289 National currency accounts in STSU (component 1) 5,732,355 National currency accounts in STSU (components 2, 3) 10,626 (6,117,516) Subtotal: (8,642,954) Balance as at December 31, 2016 206,086,883 See notes to the special financial statements SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 15 Notes to the special financial statements 1. Project description On June,15 2015 the Loan Agreement # 8475-UA dated 19 March 2015 between Ukraine and International Bank for Reconstruction and Development has been ratified. In accordance with the Agreement the Loan amount equals to 214,729,837 US dollars and is provided for the realization of the the Serving People, Improving Health Project. By its letter #2015/6/15-44 dated June,15 2015, the World Bank confirmed the entry into force of the Loan Agreement between Ukraine and the International Bank for Reconstruction and Development ("The World Bank") of March 19, 2015 about implementation of the Project "Serving people, Improving Health Project". Ukraine fully complied with all four preconditions defined by the World Bank on March 19, 2015. The objectives of the Project are to improve the quality of health services in selected oblasts, with special focus on primary and secondary prevention of cardiovascular diseases and cancer, and to enhance the efficiency of the health care system. The Project consists of the following parts, namely: Part 1. Improving service delivery at the local level Part 2. Strengthening Ministry of Health governance Part 3. Project management, and monitoring and evaluation Improving service delivery at the local level (regionol component) will support health care reform at the regional level in 8 selected on a competitive basis regions (Vinnytsia, Volyn, Dnipropetrovsk, Zakarpattia, Zaporohzhia, Lviv, Poltava, and Rivne regions, Vinnytsia). Within the framework of universal primary objective of improving the prevention and treatment of inot nfectious diseases and not the associated strengthening mechanisms for the provision of services in the areas to be implemented different priority areas, namely: 1) improving primary health care in general; 2) reduction of cardiovascular disease and mortality; 3) early detection and treatment of cancer; 4) rationalization of the system of hospitals and government in it. A public health sector governance improvement" (central component) that will be implemented at the level of the Ministry of Health of Ukraine, provides: 1) the development and introduction of new DRG-based financing health care methods 2) the development of public health 3) Information and communication support health care reform and 4) informational support of health 5) strengthening of the institutional capacity of the Ministry of Health of Ukraine and areas covered by the project The purpose of the component is to strengthen the strategic management of the health system, and to ensure the proper coordination of the sector at the regional level with the Ministry of Health. Project monaement, and monitoring and evaluation (central component) is aimed at supporting the Project coordination at the national level, which will be responsible for project implementation and technical assistance areas, as well as undertaking monitoring and evaluation of the project. Project executive in charge is the Ministry of Health governance of Ukraine, Vinnitsa, Votyn, Dnipropetrovsk, Zakarpattya, Zaporohzhia, Lviv, Poltava, Rivne state administrations and Vinnitsa city council. The Closing Date is September 30, 2020. Principal Payment date on each February 15 and August 15 beginning August 15, 2020 through on February 15, 2038. SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 16 Within the Loan the following expenditures are being finance: Loan amount N2 Category in US dollars % of expenditures financed (1) Goods, works, non-consulting services, consultants' services and Operating Costs for Part 1 of the Project to be implemented by: (a) Vinnitsa Oblast (state administration 32,850,400 and city council) (b) Volyn Oblast 30,000,000 100% (c) Dnipropetrovsk Oblast 40,000,000 (d) Zakarpattya Oblast 6,529,600 (e) Zaporizhzhya Oblast 4,000,000 (f) Lviv Oblast 10,150,000 (g) Poltava Oblast 41,000,000 (h) Rivne Oblast 25,000,000 (2) Goods, works, non-consulting services, 100% consultants' services and Operating Costs 20,200,000 for Part 2 of the Project (3) Goods, non-consulting services, consultants' services and Operating Costs 4,463,012 100% for Part 3 of the Project (4) Front-end Fee 536,825 Amounts due pursuant to Section 2.08 (c) of the Loan Agreement TOTAL: 214,729,837 2. Notes to the special financial statements 2.1. Project description In order to achieve the objectives of the Project, the State Treasury of Ukraine on the request of the Ministry of Health of Ukraine has opened and maintains two separate US dollar Designated accounts at the Public Joint-Stock Company "State Export and Import Bank of Ukraine" (Ukreximbank) in order to implement Components No.1, Components No.2 and No.3 of the Project. The Bank has designated the limits of Designated accounts in an amount equivalent to $20,000,000 for the Designated Account created for the needs of activities under Component No.1 of the Project, and in an amount equivalent to $2,500,000 for the Designated Account created for the purposes of Components No.2,3 of the Project, and must be deposited from the Loan account into the respective Designated Accounts. Funds committed and further drawdowns to replenish the Designated account are withdrawn by the Recipient, who is to deliver withdrawal applications for money transfer to the Designated Account to the Bank. 2.2. Receipts and Expenditures Recognition The Project maintains its records and prepares its financial statements on the cash basis. Receipts are recognized when they are received on the bank accounts on which the advances from the Bank are deposited. Expenditures are recorded on the day of withdrawals from those accounts. 2.3. Reporting Currency According to the Bank's requirements the currency of these financial statements is the US dollar. 2.4. Revaluation of expenditures incurred in national currency All expenditures that were actually incurred during the reporting period in national currency (UAH) are converted into US dollar and reported in the Special financial statements at the conversion rate on the date of conversion. 2.5. Reporting period According to the Bank's requirements, given report includes a period of more than one fiscal year, namely, the period from June 15th, 2015 to December 31th, 2016. SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 17 3. Loan Account In accordance with the terms of the Loan Agreement No. 8475-UA of March 19th, 2015 between Ukraine and the Bank, the Bank withdraws from the Borrower's behalf the Loan Account and pays to itself a commission for granting a loan in the amount of one quarter of one percent (0.25%) from the amount of the Loan immediately after the date of Agreement's entry into the force. 4. Designated bank accounts On July 9th, 2015, two Designated Accounts were opened in the Joint Stock Company "The State Export-Import Bank of Ukraine" (JSC Ukreximbank) Kyiv, Ukraine for the implementation of the Project "Serving people, Improving Health Project" in accordance with the Loan Agreement No. 8475-UA. In accordance with the requirements of the Resolution of the Cabinet of Ministers of Ukraine dated September 5th, 2007 No.1090 "Some Issues of Implementation of Budget Programs for Implementation of Economic and Social Development Projects Supported by the International Bank for Reconstruction and Development", a Designated account is a foreign currency account opened in Authorized Bank in the name of the State Treasury Service for the term of the Loan agreement. In order to convert currency and transfer funds for Component No.1 of the Project to regional subprojects, for Components No.2,3 of the Project the Ministry of Health prepares and submits to the State Treasury of Ukraine a written application for the transfer to the accounts of the special fund of the state budget of the hryvnia equivalent in foreign currency. For realization of expenditures in national currency within the framework of the project of the Ministry of Health the executors of regional subprojects opened in the State Treasury service registration accounts at the expense of the special fund of the state budget in the context of separate budget programs and accounts in Ukreximbank for settlements in foreign currency. 5. Cash Flow with the Accounts in Ukrainian banks for the period from June 15, 2015 to December 31, 2016 Cash flows on the accounts in the STSU Category lof the Project in UAH and USD during the reporting period: Category 1-A UAH account US dollar UAH Balance as at June 15, 2015 - Inflow : Inflow from the currency account 366,382 9,404,286 Total inflow: 366,382 9404,286 Expenditures : Expenditures incurred during the reporting period 151,554 3,731,206 Total expenditures: 151,554 3,731,206 Balance as at December 31, 2016 214,828 5,673,080 Currency account US dollar Balance as at June 15, 2015 - Inflow : Inflow from the UAH account 29,069 Total inflow: 29,069 Expenditures : Sale from the currency account 29,069 Total expenditures: 29,069 Balance as at December 31, 2016 - SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 18 Category 1-B UAH account US dollar UAH Balance as at 15 June 2015 - Inflow : Inflow from the currency account 240,386 5,937,181 Total inflow: 240,386 5,937,181 Expenditures : Expenditures incurred during the reporting period 195,219 4,767,974 Total expenditures: 195,219 4,767,974 Balance as at December 31, 2016 45,167 1,169,207 Starting from 15 June, 2015 to 31 December, 2016 there was no Cash Flow in the currency account in 1-B Category. Category 1-C UAH account US dollar UAH Balance as at 15 June 2015 - - Inflow : Inflow from the currency account 366,246 9,532,420 Total inflow: 366,246 9,532,420 Expenditures : Expenditures incurred during the reporting period 192,746 4,947,787 Total expenditures: 192,746 4,947,787 Balance as at December 31, 2016 173,500 4,584,633 Starting from 15 June, 2015 to 31 December, 2016 there was no Cash Flow in the currency account in 1-C Category. Category 1-D UAH account US dollar UAH Balance as at 15 June 2015 - Inflow : Inflow from the currency account 330,738 8,614,904 Total inflow: 330,738 8,614,904 Expenditures : Expenditures incurred during the reporting period 122,416 3,121,946 Total expenditures: 122,416 3,121,946 Balance as at December 31, 2016 208,321 5,492,958 Starting from 15 June, 2015 to 31 December, 2016 there was no Cash Flow in the currency account in 1-D Category. SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 19 Category 1-E UAH account US dollar UAH Balance as at 15 June 2015 Inflow : Inflow from the currency account 473,317 12,296,579 Total inflow: 473,317 12,296,579 Expenditures : Expenditures incurred during the reporting period 127,519 3,306,251 Total expenditures: 127,519 3,306,251 Balance as at December 31, 2016 345,798 8,990,328 Starting from 15 June, 2015 to 31 December, 2016 there was no Cash Flow in the currency account in 1-E Category. Category 1-F UAH account US dollar UAH Balance as at 15 June 2015 - - Inflow : Inflow from the currency account 3,844,351 101,158,721 Total inflow: 3,844,351 101,158,721 Expenditures : Expenditures incurred during the reporting period 212,481 5,401,055 Total expenditures: 212,481 5,401,055 Balance as at December 31, 2016 3,631,870 95,757,666 Currency account US dollar Balance as at 15 June 2015 - Inflow : Inflow from the UAH account 33,790 Total inflow: 33,790 Expenditures : Sate from the currency account 33,790 Total expenditures: 33,790 Balance as at December 31, 2016 - Category 1-G UAH account US dollar UAH Balance as at 15 June 2015 - - Inflow : Inflow from the currency account 812,077 21,149,800 Total inflow: 812,077 21,149,800 Expenditures : Expenditures incurred during the reporting period 219,618 5,491,475 Total expenditures: 219,618 5,491,475 Balance as at December 31, 2016 592,459 15,658,325 SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 20 Currency account US dollar Balance as at 15 June 2015 - Inflow : Inflow from the UAH account 59,987 Total inflow: 59,987 Expenditures : Sale from the currency account 59,987 Total expenditures: 59,987 Balance as at December 31, 2016 - Category 1-H UAH account US dollar UAH Balance as at 15 June 2015 - - Inflow : Inflow from the currency account 691,172 17,985,523 Total inflow: 691,172 17,985,523 Expenditures : Expenditures incurred during the reporting period 170,761 4,389,978 Total expenditures: 170,761 4,389,978 Balance as at December 31, 2016 520,411 13,595,545 Starting from 15 June, 2015 to 31 December, 2016 there was no Cash Flow in the currency account in 1-H Category. Categories 2 and 3 UAH account US dollar UAH Balance as at 15 June 2015 Inflow: Inflow from the designated account 554,711 13,832,687 Total inflow: 554,711 13,832,687 Expenditures : Expenditures incurred during the reporting period 544,086 13,555,264 Total expenditures: 544,086 13,555,264 Balance as at December 31, 2016 10,625 277,423 Currency account US dollar Balance as at 15 June 2015 Inflow : Inflow from the designated account 15,863 Total inflow: 15,863 Expenditures : Sale from the currency account 15,863 Total expenditures: 15,863 Balance as at December 31, 2016 - SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 21 6. Economic environment The Project is being implemented in the territory of Ukraine. The Ukrainian economy is in a protracted crisis, which is complicated by the military conflict in eastern Ukraine, the recognition as temporarily occupied of territories of certain districts of Donetsk and Lugansk region and the unrecognized separation of the Autonomous Republic of Crimea. Also, as a result of the above-mentioned factors and negative expectations of the population, the Ukrainian hryvnia significantly devaluated for 3 years; inflation index of consumer prices for 2014-2016 exceeded 100% and amounted to 101.2%. The stabilization of the situation in Ukraine will largely depend on the government's actions aimed at resolving the military conflict, reforming the country's financial, administrative, fiscal and legal systems. The impact of these issues on the business environment in Ukraine, as well as their final settlement, can not be predicted with sufficient probability. However, all these issues can have a negative impact on the stability of the economic environment and operating activities of the Project. 7. Contracts List of contracts in force at December 31, 2016: Contract No Date of Type of goods or services Contract value Contract signature (CW/GO/CS/OP/TR) in USD currency IC/SSS 2.1/71 08.10.2015 Consulting Services / CS 86,066 USD IC-2.2/35 22.04.2016 Consulting Services / CS 166,000 USD IC 2.3/80 27.10.2015 Consulting Services / CS 166,220 USD IC 5.9.3/11 15.03.2016 Consulting Services/ CS 11,520 USD IC 7.10.1/114 24.11.2015 Consulting Services/ CS 149,935 USD IC/SSS 7.2/66 08.10.2015 Consulting Services/ CS 201,992 USD IC/SSS 7.4/65 08.10.2015 Consulting Services/ CS 168,023 USD IC 7.5/151 15.12.2015 Consulting Services/ CS 133,320 USD IC/SSS 7.8/64 08.10.2015 Consulting Services/ CS 168,023 USD IC/96 21.12.2015 Consulting Services/ CS 113,500 USD IC/7 09.02.2016 Consulting Services/ CS 141,000 USD IC/79 19.11.2015 Consulting Services/ CS 137,500 USD IC/80 19.11.2015 Consulting Services/ CS 150,000 USD IC-1.4.4/55 02.11.2016 Consulting Services/ CS 95,000 USD IC/95 21.12.2015 Consulting Services/ CS 106,480 USD IC/8 09.02.2016 Consulting Services/ CS 130,000 USD SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 22 IC/41 30.08.2016 Consulting Services/ CS 28,520 USD IC.2.3.1 20.11.2015 Consulting Services/ CS 23,000 USD IC.2.3.2 20.11.2015 Consulting Services/ CS 20,000 USD IC.2.3.3 01.03.2016 Consulting Services/ CS 16,800 USD IC.2.3.5 20.11.2015 Consulting Services/ CS 20,000 USD IC.2.3.6 30.11.2015 Consulting Services/ CS 12,000 USD IC/3.3.1 18.09.2015 Consulting Services/ CS 31,985 USD IC/3.3.2 18.09.2015 Consulting Services/ CS 26,982 USD IC/3.3.3 18.09.2015 Consulting Services/ CS 21,980 USD IC/3.3.4 01.12.2015 Consulting Services/ CS 19,988 USD IC/3.3.6.2 03.11.2016 Consulting Services/ CS 6,820 USD IC/3.3.7 01.07.2016 Consulting Services/ CS 4,625 USD 69827 02.06.2016 Operating costs / OC 10,000 UAH 116634 17.06.2016 Operating costs / OC 3,000 UAH ICB 4.1.1/ Lot N92 22.11.2016 Goods / G 159,780 EURO ICB 4.1.1/ Lot Na1 15.12.2016 Goods / G 3,530,069 UAH ICB 4.1.2/ Lot N94 11.11.2016 Goods / G 1,320,500 USD ICB 4.1.2/ Lot N91 22.12.2016 Goods / G 270,000 EURO ICB 4.1.2/ Lot N92 22.12.2016 Goods / G 127,500 EURO ICB 4.1.2/ Lot N93 22.12.2016 Goods / G 1,522,541 EURO ICB 4.1.2/ Lot N25 22.12.2016 Goods / G 2,291,803 EURO ICB 4.1.2/ Lot N26 22.12.2016 Goods / G 445,678 EURO SH/4.2.1 15.12.2015 Technical services / TS 212,958 UAH 4.2.2 17.05.2016 Consulting services/ CS 506,000 UAH 6/H 29.11.2016 Training / TRNG 15,400 UAH SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 23 IC/4.3.1 15.09.2015 Consulting services/ CS 44,300 USD IC/4.3.2 01.12.2015 Consulting services/ CS 33,000 USD IC/4.3.3 15.09.2015 Consulting services/ CS 38,800 USD IC/4.3.4 15.09.2015 Consulting services/ CS 23,000 USD IC/4.3.5 15.09.2015 Consulting services/ CS 33,400 USD 7334588 15.01.2016 Operating costs / OC 5,250 UAH 4.3.6-4 13.04.2016 Operating costs / OC 3,930 UAH 167906 11.11.2016 Operating costs / OC 1,950 UAH 1/4.3.6(brocer ICB) 14.12.2016 Operating costs / OC 15,360 UAH IC/4.3.7 24.02.2016 Consulting services/ CS 5,800 USD IC 5.4.1./2 01.12.2015 Consulting services/ CS 107,290 USD IC 5.4.2./-3 01.12.2015 Consulting services/ CS 115,540 USD IC/5.4.3/-6 22.01.2016 Consulting services/ CS 92,376 USD IC/5.4.4/-5 22.01.2016 Consulting services/ CS 87,244 USD IC/5.4.5/-8 16.03.2016 Consulting services/ CS 18,334 USD 110451 13.04.2016 Operating costs / OC 2,000 UAH TBH056/16 15.07.2016 Operating costs / OC 57,106 UAH IC/5.4.9-1/4 17.12.2015 Consulting services/ CS 21,510 USD IC/6.1.4/2 01.07.2016 Consulting services/ CS 67,500 USD SH/6.2.4 14.09.2016 Technical services / TS 1,393,750 UAH SH 6.3.1/1 24.10.2016 Technical services / TS 507,455 UAH SH 6.3.2.1/1 21.09.2016 Technical services / TS 113,765 UAH IC/6.4.1 26.10.2015 Consulting services/ CS 160,000 USD 167945 31.05.2016 Operating costs / OC 20,390 UAH 2 16.05.2016 Operating costs / OC 98,276 UAH SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 24 6.4.11/5 19.12.2016 Operating costs / OC 5,000 UAH 28 14.07.2016 Operating costs / OC 27,200 UAH IC/6.4.2 13.11.2015 Consulting services/ CS 79,750 USD IC/6.4.3 16.01.2016 Consulting services/ CS 124,000 USD IC/6.4.4/2 18.04.2016 Consulting services/ CS 59,500 USD IC/6.4.5 14.12.2015 Consulting services/ CS 37,300 USD IC/6.4.7 01.02.2016 Consulting services/ CS 48,000 USD IC/6.4.8 21.04.2016 Consulting services/ CS 49,500 USD SH 6.4.9/3 04.10.2016 Goods / G 341,861 UAH IC/6-7.4.10 03.10.2016 Consulting services/ CS 23,100 USD IC/2 02.12.2015 Consulting services/ CS 129,950 USD IC/3 02.12.2015 Consulting services/ CS 129,950 USD IC/5 25.01.2016 Consulting services/ CS 127,828 USD IC/4 09.02.2016 Consulting services/ CS 38,900 USD 114228 24.05.2016 Operating costs / OC 10,000 UAH HRK-07/05-16 12.05.2016 Operating costs / OC 65,000 UAH 38-04/00-1130 28.07.2016 Operating costs / OC 6,000 UAH IC/5 09.12.2015 Consulting services/ CS 55,100 USD IC/4 04.12.2015 Consulting services/ CS 36,400 USD CQ 8.3.3 12.12.2016 Consulting services/ CS 30,000 USD SH 8.3.5 12.08.2016 Technical services / TS 822,224 UAH SSS/8.3.6.1/2 28.07.2016 Consulting services/ CS 5,888 USD SSS/8.3.6.2/2 28.07.2016 Consulting services/ CS 5,888 USD SSS/8.3.6.3/2 28.07.2016 Consulting services/ CS 5,856 USD SSS/8.3.6.4/2 28.07.2016 Consulting services/ CS 5,856 USD SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 25 SSS/8.3.6.5/2 28.07.2016 Consulting services/ CS 5,856 USD SSS/8.3.6.6/2 28.07.2016 Consulting services/ CS 5,856 USD IC/1 06.11.2015 Consulting services/ CS 102,000 USD IC/2 06.11.2015 Consulting services/ CS 73,950 USD IC/6 31.12.2015 Consulting services/ CS 71,050 USD IC/7 31.12.2015 Consulting services/ CS 62,400 USD IC/3 04.12.2015 Consulting services/ CS 60,000 USD SH-8.4.7 29.06.2016 Goods / G 164,746 UAH 080416/1 08.04.2016 Operating costs / OC 5,807 UAH 8. Inventories Inventories purchased at the expenses of Loan during current period are the following: Contract No and .Contract Value in ontrate NoaSummary description conct contract date currency currency 1. Cupboard for documents (5 units); 2. Metal strongbox; N2 SH-8.4.6 dd 3. Office corner desk (2 units); UAH 26,870 05.05.2016 4. Office table (6 units): 5. Wardrobe; 6. Office chair (8 units) 1. Notebook HP 250 (M9TOOEA) + wireless mouse + handbag (7 units); 2. Multifunctional device A4 b/w HP LJ Pro M426dw with Wi-Fi; N2 SH-8.4.7 dd 3. Document Shredder Agent 009 X (6010213); UAH 164,746 29.06.2016 4. Epson L120 inkjet printer; 5. Panasonic Lumix DMC-SZ10EE Black Digital Camera (DMC-SZ1OEE-K); 6. LCD Monitor Acer 23 R231bmid FHD 4ms, D-Sub, DVI, HDMI, IPS, MM, Black, 178/178. N2 180816 dd Wall-mounted air-conditioner ACE/IN -09HN1 /ACE/OUT- 26.09.2016 09HN1 UAH 7,590 Computer total package procurement for the consultants of the management Group of subprojects (GUS) (2 units) N23 dd 24.12.2015 Multifunctional device for the consultants of the management Group of subprojects (GUS) N2SH 3.1.2./oOT 2 dd 20.10.2016 Surgical Instruments for surgery: Clip surgical (15 units) UAH 2,384 N2SH 3.1.2./nOT 2 dd Surgical Instruments for surgery: surgical tweezers (10 UAH 681 20.10.2016 units) N9SH 3.1.2./iioT 2 dd 20.10.2016 Surgical Instruments for surgery: Surgical Scissors (5 units) UAH 486 N2SH 3.1.2.//lOT 2 dd Surgical Instruments for surgery: kidney-shaped tray (5 UAH 593 20.10.2016 units) SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 26 NeSH 3.1.2./nor 2 dd Surgical Instruments for surgery: needle holder (5 units) UAH 665 20.10.2016 N2SH 3.1.2./nOT 2 dd Surgical Instruments for surgery: sterilization box round (5 UAH 6,508 20.10.2016 units) N9SH 3.1.2./nlOT 2 dd Surgical Instruments for the surgery: stands for UAH 15,484 20.10.2016 sterilization boxes round - a stand for a biks fl (5 units). N2SH 3.1.2./noT 2 dd Surgical Instruments for the surgery: large square tray (5 UAH 2,914 20.10.2016 units) N2SH 3.1.2./nor 2 dd Surgical Instruments for surgery: round tray (type of bowl) UAH 8,121 20.10.2016 made of stainless steel (5 units) N2SH 3.1.2./nor 2 dd Surgical Instruments for the surgery: portable irradiator - UAH 5,080 20.10.2016 emitter bactericidal mobile 06[le-225M (2 units) N2SH 3.1.2./nor 2 dd Surgical Instruments for the surgery: Clip surgical (15 UAH 2,384 20.10.2016 units) NoSH 3.1.2./noT 2 dd Surgical Instruments for the surgery: surgical tweezers (10 UAH 681 20.10.2016 units) NoSH 3.1.2./10T 2 dd Surgical Instruments for the surgery: Surgical Scissors (5 UAH 486 20.10.2016 units) N2SH 3.1.2. /JnOT 2 dd Surgical Instruments for the Operating: kidney-shaped tray UAH 593 20.10.2016 (5 units) NoSH 3.1.2./OT 2 dd Surgical Instruments for operating room: needleholder (5 UAH 665 20.10.2016 items) N9SH 3.1.2./nOT 2 dd Surgical Instruments for the surgery: needle holder (5 UAH 6,508 20.10.2016 units) N2SH 3.1.2./noT 2 dd Surgical Instruments for the surgery: sterilization box UAH 15,484 20.10.2016 round (5 units) NoSH 3.1.2./noT 2 dd Surgical instruments for the surgery: stands for round UAH 2,914 20.10.2016 sterilization boxes - Stand for biks fl5 (5 units). NoSH 3.1.2./nor 2 dd Surgical Instruments for the surgery: large square tray (5 UAH 8,121 20.10.2016 units) NeSH 3.1.2./11O 2 dd Surgical Instruments for the surgery: portable irradiator - UAH 2,540 20.10.2016 bactericidal lamp OBfle-225M N2SH 3.1.2./nOr 2 dd Medical furniture. Medical bed Eleganza 1 (6 items) UAH 264,150 20.10. 2016 NoSH 3.1.2./OT 1 dd Medical furniture. Medical cart for transportation of UAH 197,374 20.10.2016 patients TBfl -01 (2 units) N2SH 3.1.2./n1T 1 dd Medical furniture. Medical stand CM-K -01 (2 units) UAH 14,480 20. 10.2016 N2SH 3.1.2./n1o 1 dd Medical furniture. Medical stand CM-K -02 (2 units) UAH 23,960 20. 10. 2016 N2SH 3.1.2./nOT 1 dd Medical furniture. Medical cupboard MW -2-05 (2 units) UAH 25,800 20. 10.2016 N2SH 3.1.2./n1T 1 dd Medical furniture. Medical bed Eleganza 1 (6 units) UAH 264,150 20. 10. 2016 N9SH 3.1.2./10T 1 dd Medical furniture. Medical carriage for transportation of UAH 98,687 20.10.2016 patients TBl -01 N2SH 3.1.2./nOr 1 dd Medical furniture. Medical stand CM-K -01 (2 units) UAH 14,480 20. 10.2016 N2SH 3.1.2./nOr 1 dd Medical furniture. Medical stand CM-K -02 (2 units) UAH 23,960 20.10. 2016 NSH 3.1.2./no 1 dd Medical furniture. Medical cupboard MW -2-05 (4 units) UAH 51,600 20.10.12016 N SH/6.4.10 dd Wardrobe typel WO -01 (2 units) UAH 4,950 10.05.2016 SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 27 N2 SH/6.4.10 dd Wardrobe type2 LIJO -02 UAH 1,695 10.05.2016 N SH/6.4.10 dd Office desk right-angled CP-01 (6 units) UAH 10,980 10.05.2016 N2 SH/6.4.10 dd Office corner desk CPKji-01 UAH 2,250 10.05.2016 N! SH/6.4.10 dd 10.05.2016 Office corner desk CPKnp -01 UAH 2,250 N! SH/6.4.10 dd 10.05.2016 Office table with side-table for meetings CP-05 UAH 5,475 N SH/6.4.10 dd Bookcase for documents typel W-01 (3 units) UAH 7,920 10.05.2016 N SH/6.4.10 dd Bookcase for the documents typel WA-02 UAH 2,730 10. 05.,2016 N SH/6.4.10 dd Office chair "Prestige" Lux LB / AMF-7 (9 units) UAH 8,640 10. 05. 2016 N SH/6.4.10 dd Office chair "IZO" (17 units) UAH 6,630 10.05.2016 N2 SH/6.4.10 dd Office sofa "Comfort" UAH 2,520 10.05.2016 N SH/6.4.10 dd Foot-(ocker Stand typel T-01 (4 units) UAH 2,820 10.05.2016 N SH/6.4.10 dd Foot-tocker Stand type2 T-02 (3 units) UAH 3,060 10. 05.42016 N SH/6.4.10 dd Venetian shutters typel (3 units) UAH 4,140 10.05.2016 No SH/6.4.10 dd Venetian shutters type2 UAH 1,065 10.05.2016 N SH/6.4.10 dd Office strongbox SN-100 UAH 4,320 10.05.2016 N SH/6.4.10 dd Niche for the computer system unit PK-01 (8 units) UAH 1,920 10.05.2016 N SH/6.4.10 dd Anti-shock pad on the wall CP-01 (18 units) UAH 810 10.05.2016 No SH 6.4.9/3 dd HP 250 Notebook (L3P80ES) UAH 20,138 04.10.2016 No SH 6.4.9/3 dd Multipurpose unit Canon i-SENSYS MF724Cdw with Wi-Fi UAH 14,868 04.10.2016 (99471008) N2 SH 6.4.9/3 dd Multifunctional device HP LaserJet M225dn (CF484A) (2 UAH 21,948 04.10.2016 units) N0 SH 6.4.9/3 dd Wi-Fi Router TP-Link TL-WR941ND UAH 1,141 04. 10.42016 N0 SH 6.4.9/3 dd Monitor LG 22MP58VQ-P (8 units) UAH 35,270 04.10.92016 N0 SH 6.4.9/3 dd Notebook Bag Grand-X 15.6" Black (SB-115) UAH 181 04.10.2016 N0 SH 6.4.9/3 dd Multifunctional device HP LaserJet M426DW UAH 14,095 04.410.92016 N0 SH 6.4.9/3 dd Uninterrupted power supply (UPS) LP-500VA-R (8 units) UAH 8,861 04.410.92016 N0 SH 6.4.9/3 dd Cartridge Patron HP LJ CF283A Extra (PN-83AR) (2 units) UAH 2,014 04.10.92016 N SH 6.4.9/3 dd Personal computer NEO (8 units) UAH 71,693 04. 10. 2016 Ne SH 6.4.9/3 dd Digital Camera Nikon D3300 + 18-140mm black UAH 19,440 04.10.2016 (VBA390KV12) No SH 6.4.9/3 dd Cartridge HP LJ 26 Black (Pro M402n / M426dw) (GG- UAH 7,249 04.10.2016 CF226A) N SH 6.4.9/3 dd Network filter "Filter Power Cube" (9 units) UAH 907 04.10.92016 N0 SH 6.4.9/3 dd Cartridge set for CANON 718 - CotorWay UAH 3,456 04.10.2016 N! SH 6.4.9/3 dd Operating System Microsoft Windows 10 Pro 64-bit Russian UAH 49,500 04.10.2016 1pk (9 units) N! SH 6.4.9/3 dd Office software Microsoft Office Home and Business 2016 UAH 71,100 04.10.2016 32/64 Russian (9 units) SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 28 1. Laptops (5 units), 2. BFP (2 units), 26.04.2016 3. Win10PRO (5 units), UAH 126,962 4. ESET NOD32 (5 units), 5. Cartridges for FFT ICB4.1.1/lot2 dd Microscopes (11 units) EUR 56,545 22.11.2016 1. Laptop type 1 ASUS E202SA-FDO013D (6 units), 2. Laptop type 2 LENOVO IDEAPAD 10-151BY 80QQ008CUA (33 units), 3. EPSON EB-X04 multimedia projector (33 units), 4. Screen Acer T87-SO1MW (33 units), 5. Logitech C270 HD webcam (33 units), 6. Acoustic system Microlab 2.0 SOLO 6 (33 units), 7. Radio system SOUNDKING EW201 H (33 units), 8. Multifunctional device A3 A3 Kyocera TASKalfa 2201, N2SH 2.1.1 dd 9. Consumables for the Multifunction Device A3 (2 units), 19.07.2016 10. Multipurpose device A4 Canon iR1133iF USD 67,410 11. Consumables for the A4 Multifunctional Unit, 12. Multifunctional device RICOH Aficio SP 111SF (33 units), 13. Consumables for Printer A4 (33 units), 14. Headset (headset with microphone) Genius HS-200C (33 units), 15. Modem with Wi-Fi router Asus DSL-N17U ADSL2 / 2 + (34 units), 16. Network Filter GEMBIRD SPG5-G-15G (39 units) No SH/5.4.6.1 dd Laptop type 1 HP ProBook 450 (P5562EA+) + Cable HDMI UAH 110,460 12.07.2016p. (AM/AM) 2,Om (7 items) No SH/5.4.6.1 dd Notebook Bag Typel DTBG D8123 15.6" Black (D8123BL- UAH 1,462 12.07.2016p. 15.6) (7 units) No SH/5.4.6.1 dd Laptop type 2 HP ProBook 430 (N1BO6EA+) + Cable HDMI UAH 16,865 12.07.2016p. (AM/AM) 2,Om No SH/5.4.6.1 dd Notebook Bag Type2 DTBG D8123 13.3" Black (D8123BL- UAH 178 12.07.2016p. 13.3) No SH/5.4.6.1 dd Set "Keyboard + Optical Mouse" Geniurs SlimStar 8000ME UAH 3,562 12.07.2016p. Black WL Ukr (31340045104+) (8 units) N2 SH/5.4.6.1 dd LED Monitor Samsung 23.5"S24F350F FHD (LS24F350FHIXCI) UAH 38,650 12.07.2016p. (8 units) No SH/5.4.6.1 dd Microsoft Windows 10 Pro 64-bit Russian Ipk DVD UAH 29,872 12.07.2016p. Operating System (FQC-08909) N2 SH/5.4.6.1 dd Office software Microsoft Office Home and Business 2016 UAH 40,264 12.07.2016p. 32/64 Russian DVD (T5D-02290) N2 SH/5.4.6.1 dd Multifunction Device (MFD) Typel Canon IR2530i UAH 50,288 12.07.2016p. (28351008) No SH/5.4.6.1 dd Additional consumables for MFD Typel - Canon Toner 12.07.2016p. Cartridge C-EXV33 iR2520 / 2520i / 2530 / 2530i Black UAH 7,445 (2785B002) (7x14600 pages = 102200 pages 5%) N2 SH/5.4.6.1 dd Multifunction Device Type2 HP LJ Pro M225dw with Wi-Fi UAH 10,937 12.07.2016p. (CF485A) Nq SH/5.4.6.1 dd Additional consumables for RPS Type2 HP 83X (CF283X) - 12.07.2016p. cartridge kit (7x2200 pages + starter page 1500 pages = UAH 16,987 16,900 pages 5%) N2 SH/5.4.6.1 dd Multifunction Device Type3 HP Color LJ Pro M377fdw with UAH 12,106 12.07.2016p. Wi-Fi (M5H23A) SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 29 Additional consumables for MFD Type3 (HP 410X cartridge No SH/5.4.6.1 dd kit (1 x CF410X, 1 x CF411X, 1 x CF412X, 1 x CF413X) 12.07.2016p (Color: 1200 pc starter kit + additional (3 colors by 1 unit), UAH 21,774 7 p for 5000 pages each = 6200 pages 5%; Black: startup kit of 2300 pages + set of 1 unit on 6500 pages = 8800 pages 5%) N SH5.4.6.1 dd Wi-Fi router TP-LINK TD-W8980 UAH 2,639 12. 07.201 6p. N2 SH/5.4.6.1 dd Network Fitter - Extension cord. Power filter 5.0m UAH 1,339 12.07.2016p. Defender ES (99483) (12 units) No SH/5.4.6.1 dd Digital camera. Canon Powershot SX60 HS with Wi-Fi 12.07.2016p. (95431010) + Transcend 32GB SDHC C10 + Tucano tech plus UAH 15,751 shoulder bag N2 SH/5.4.6.1 dd Table lamp. Kantux Heron KTO17C-B (1879) (8 units) UAH 5,078 12. 07. 201 6p. N2 SH/5.4.6.1 dd Electric kettle Gorenje K17WIl (FK-1401) UAH 500 12. 07. 201 6p. N2 SH/5.4.6.1 dd Document Shredder (Shredder) Agent 01OX (DD80) UAH 2,574 12.07.201 6p. N! SH/5.4.6.1 dd 12.07.2016. . Microphone Emiter-S EM-D38 UAH 968 N SH/5.4.6.1 dd Webcam Genius WideCam F100 Full HD (32200213101) UAH 1,114 12.07.2016p. Nq SH/5.4.6.1 dd Telephone Panasonic KX-TS2365UAW White (KX- UAH 2,160 12.07.2016p. TS2365UAW) (2 units) No SH/5.4.6.2 dd Office corner desk typel - Left-side (3 units) UAH 4,800 12.07.2016p. N SH/5.4.6.2 dd Office corner desk type2 - right-side (3 units) UAH 4,800 12.07.2016,p. N SH/5.4.6.2 dd Under-table shelf for keyboard (2 units) UAH 500 12. 07.201 6p. No SH/5.4.6.2 dd Monitor stand (6 units) UAH 780 12.07.2016p. N2 SH/5.4.6.2 dd Roller stand typel (6 units) UAH 8,100 12.07.2016p. N2 SH/5.4.6.2 dd 12.07.2016p. Writing-table typel UAH 900 N2 SH/5.4.6.2 dd Writing-table type2 UAH 845 12.07.2016p. N2 SH/5.4.6.2 dd Foot-tocker Stand typel (2 units) UAH 2,600 12.07.2016p. N2 SH/5.4.6.2 dd Foot-locker Stand type2 UAH 1,100 12.07.2016p. N2 SH/5.4.6.2 dd Tym6a T"n 3 (nigBon) UAH 1,000 12.07.2016p. N2 SH/5.4.6.2 dd Foot-locker Stand type3 (for MFD) UAH 7,345 12.07.2016p. N! SH/5.4.6.2 dd Wardrobe (3 units) UAH 8,700 12.07.2016p. N2 SH/5.4.6.2 dd Cabinet for documents Typel (2 units) UAH 5,400 12.07.2016p. N2 SH/5.4.6.2 dd Cabinet for documents Type2 (3 units) UAH 8,940 12. 07. 2016p. No SH/5.4.6.2 dd Cabinet for documents Type3 UAH 3,470 12.07.2016p. SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 30 No SH/5.4.6.2 dd Cabinet for documents Type4 UAH 1,980 12.07.2016p. N2 SH/5.4.6.2 dd Corner shelving UAH 760 12.07.2016p. N2 SH/5.4.6.2 dd Office chair (6 units) UAH 5,340 12.07.2016p. N2 SH/5.4.6.2 dd 12.07.2016p. Office chair Textile ISO (4 units) UAH 1,460 N2 SH/5.4.6.2 dd Venetian shutters typel (2 units) UAH 3,600 12.07.2016p. N2 SH/5.4.6.2 dd 12.07.2016p. Venetian shutters type2 UAH 1,700 Nd SH/5.4.7-1 Calculator Citizen SDC-888 XBK 12pc UAH 241 dd 15.06.2016 p. N2 SH/5.4.7-1 Calculator ASSISTANT AC-2331 UAH 160 dd 15.06. 2016 p, N2 SH/5.4.7-1 Calculator ASSISTANT AC-2304 - (2 units) UAH 243 dd 15.06.2016 p. N2 SH/5.4.7-1 Brochure stitching machine Agent B-12 UAH 1,217 dd 15.06.2016 p. Personal computer 3Q (IntelG3260/6GB DDR3- No SH-7/19/45 dd 1333/500GB/DVDRW/WiFi 29.07.2016 (PCI)/Ethernet/VGA/HDMI/400W) (16 units) N2 SH-7/19/46 dd LED monitor Acer 21.5"K222HQLBbid (UM.WX6EE.B01) (26 UAH 100,090 29.07.2016 units) N2 SH-7/19/47 dd Uninterruptible Power Supply (UPS) Powercom RPT-600A UAH 16,118 29.07.2016 Schuko (16 units) Notebook PC Acer V3-371-57B3 (13.3"FHD AG/Inte(Core i5- No SH-7/19/48 dd 5257U/8GBDDR3- 29.07.2016 1333/1TB/Intel61OO/HDMI/Webcam/USB2.0x2/USB3.0/Lin NX.MPGEU.082) - (10 units) N2 SH-7/19/49 dd Notebook Bag DTBG D8123 13.3" Black (10 units) UAH 2,178 29. 07. 2016 N2 SH-7/19/50 dd Software / Operating System Microsoft Windows 29.07.2016 Professional 7 Service Pack 1 x64 RUS CIS-Georgia 1pk DSP UAH 105,846 OEl Not to China DVD LCP FQC-08297 (26 units) N2 SH-7/19/51 dd Software / Antivirus ESET Endpoint Antivirus 29.07.2016 (1-year update of antivirus databases and components) (26 UAH 6,739 units) N2 SH-7/19/52 dd Software / Microsoft Office "Office Home and Business 29.07.2016 2016" Win AltLng PKLic On[n CEE Only C2R NR T5D-02322 UAH 151,242 (26 units) N2 SH-7/19/53 dd Multifunctional device A4 Samsung SL-M3870FW with Wi-Fi UAH 91,258 29.07.2016 (WiFi, SL-SCF3800 / SEE, 2xMLT-D2035 / SEE) (8 units) N2 SH-7/19/54 dd Consumables for the Multifunctional Unit A4 - Cartridge UAH 31,334 29.07.2016 Set MLT-D203E / SEE + MLT-D203S / SEE (8 units) N2 SH-7/19/55 dd WiFi Router TP-LINK TL-WR740N (6 units) UAH 2,502 29. 07.F2016 SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 31 N2 SH-7/19/56 dd Keyboard GREENWAVE Standard 105, USB, Black (16 units) UAH 1,670 29.07.2016 No SH-7/19/57 dd 29.0H7.167 d Optical mouse GREENWAVE Barra, USB, black (16 units) UAH 1,258 29.07.2016 N2 SH-7/19/58 dd Extension cord GREENWAVE Basic-3-3, 3m, gray for 3 UAH 2,340 29.07.2016 sockets (26 units) Inv. N2 25945 dd 21.12.2015 Document Shredder FeLLowes-33 UAH 2,429 SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 32 World Bank Audit Documentation Checklist Name of Loan/Credit: The Serving People, Improving Health Project Loan/Credit # # 8475-UA Audit Report: for the period from June 15, 2015 to December 31, 2016 Check if Check if Included N/A 1. Audit report (Opinion): A. Applicable accounting standards noted X B. Applicable auditing standards noted X C. Opinion rendered on all forms of withdrawals: 1. Statement of Expenditures X 2. Designated Account X D. All sources of financing for the project are noted X II. Financial Reports: A. Revenue Earning Entity (all of the following are required): 1. Balance sheet X 2. Cash Flow Statement X 3. Income Statement X B. Non-Revenue Earning Entity (all of the following are required): 1. Balance sheet 2. Summary of Sources and Uses of Funds C. If applicable (refer to Loan Agreement): 1. Statement of Expenditure (SOE) Statement 2. Designated Account Statement Ill. Notes to the Financial StatementsX IV. Reconciliation between World Bank records and project records X V. Management Letter X SPECIAL FINANCINAL STATEMENTS FOR THE PERIOD FROM JUNE 15, 2015 TO DECEMBER 31, 2016 PAGE 33