Public Disclosure Authorized O Grant Thornton Grant Project Financial Statements and N I' 2$... ID CP P, IData.0C.....' Independent Auditor's Report Public Disclosure Authorized The General Secretariat of the Government Monitoring and Evaluation of Policymaking project As of June 05, 2015 and for the period from March 14, 2012 to June 05, 2015 Public Disclosure Authorized Public Disclosure Authorized
The General Secretariat of the Government As of June 05, 2015 and for the period from March 14, 2012 to June 05, 2015 Contents Page independent auditor's report 1 Statement of financial position 3 Statement of the Project sources and uses of funds 4 Statement of uses of funds by the Project main categories of expenditures 5 Statement of grant designated account 6 Summary of Reports 7 Notes to the grant project financial statements 8
0 GrantThornton D - Independent auditor's report To the management of the General Secretariat of the Government Grtdnian Au s. 26 Aman Cines Str. Oawd 8chst Romada T+40213202328 F+40213202327 Eace@m..com Wwww.rnt-1homon We have audited the accompanying Grant Project Financial Statements of the "Monitoring and Evaluation of Policymaking" project (the "Project), which comprise the statement of financial position as of June 05, 2015, the statement of the Project sources and uses of funds for the period from March 14, 2012 to June 05, 2015, the statement of uses of funds by the Project main categories of expenditures for the period from March 14, 2012 to June 05, 2015, the Statement of Grant designated account as ofjune 05, 2015, the Summary of Reports, and a summary of significant accounting policies and other explanatory information. The grant project financial statements have been prepared by the management of the "General Secretariat of the Government" Institution (the "Institution") based on accounting policies described in the note 2 to the grant project financial statements and the relevant points of the Grant Agreement no TF098645. Management's Repoasibihty for tbe Gmat Pajet Finanial Statements Management of the Institution is responsible for the preparation and fair presentation of these Grant Project Financial Statements in accordance with the accounting policies described in the note 2 to the Grant Project Financial Statements and the relevant points of the Grant Agreement no TF098645 and for such internal control as management determines is necessary to enable the preparation of Grant Project Financial Statements that are free from material misstatement, whether due to fraud or error.
O GrantThornton Auditor's RespndikRUV Our responsibility is to express an opinion on these Grant Project 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 about whether the Grant Project Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Grant Project Financial Statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the grant project financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the project's preparation and fair presentation of the Grant Project Financial Statements 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 An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the Grant Project Financial Statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the Grant Project Financial Statements give a true and fair view of the financial position of the "Monitoring and Evaluation of Policyrnaking" project as ofjune 05, 2015, and of the funds received and expenses incurred for the period from March 14, 2012 to June 05, 2015, in accordance with the accounting policies described in the note 2 and the relevant points of the Grant Agreement no TF098645. Basis ofaccounda Without modifying our opinion, we draw attention to note 2 to the Grant Project Financial Statements, which describes the basis of accounting. The Grant Project Financial Statements are prepared to assist the management of the General Secretariat of the Government to meet the requirements of the World Bank as required by the Grant Agreement no TF098645. As a result, the Grant Project Financial Statements may not be suitable for another purpose. July 08, 2015 Grant Thornton Audit SRL gw'k4 "'
The General Secretariat of the Government 3 As of June 05, 2016 and for the period from March 14,2012 to June 05, 201$ Statement of financial position In RON Assets Non-current assets As of June Note 05, 2015 Accumulated Project expenses 1,491,751 Current assets Bank balances 103,048 Total assets 1,594,799 Funds and liabilities Interest earned 64 Accumulated Project financing 4 1,463,849 Accounts payable 5 103,048 Foreign exchange rate difference 27.838 Total funds and liabilities 1,594,799 The grant project financial statements were approved on 05.06.2015, by- Radu Iacob Cosmina Negoes Mihaela Onici Project manager Financial officer This statement is to be read in conjunction with the notes to and forming part of the grant project financial statements set out on pages 8 to 10.
The General Secretariat of the Government 4 As of June 05. 2015 and for the period from March 14,2012 to June 05, 2015 Statement of the Project sources and uses of funds As of June 05, 2015 and for the period from November 12,2012 to June 05, 2015. In RON Funds received Grant (note 4) 1,463,849 1,463,849 Interest earned 64 64 Total 1.463.913 1,463,913 Actual Planned Variance As of For the As of June For the As of June For the June 5. period 5, 2015 period 5, 2015 period 2015 Exchange differences 27,638 Uses of funds Eligible expenses 1,491,751 1,491,751 1.442,356 1,442,356 49,395 49,395 Total 1,491,751 1,491,751 1,442,356 1,442,356 49,395 49,395 Net increase in working capital - - *Grant=434.000 USO x 3,3234 (BNR exchange 14.03.2012)= 1.442.355,60 lel This statement Is to be read In conjunction with the notes to and forming part of the grant project finandal statements set out on pages 8 to 10.
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The General Secretariat of the Government As at June 05, 2015 and for the period from March 14, 2012 to June 05, 2015 Statement of grant designated account Statement as of 31 May, 2015 In RON Opening balance as of November 12, 2012 Add: Cumulative unexplained discrepancy Foreign exchange gains 27,838 Interest earned 64 Net receipts 1,566,897 Grant replenishment during the period 1,594,799 1,594,799 1,594,799 Less: Refund to during the period Present outstanding amount advanced to the Grant operating account (1) 1,594,799 Closing balance as of June 05, 2015 103.048 Add: Amount of eligible expenditures paid during the period 1,491.751 Payments made during the period but not recognized by the IDF - Service charges (if applicable) 1.491,751 1,491,751 Total advance accounted for (2) 1,554.799 Discrepancy (1) - (2) to be explained - differences between exchange rates This statement is to be read in conjunction with the notes to and forming part of the grant project financial statements set out on pages 8 to 10.
The General Socretariat of the Government As of June 05, 2015 and for the period from March 14,2012 to June 05, 2015 Summary of Reports 7 As o June 05,2015and for the period from March 14,2012 to June 05,2015 In RON No Number of the Date of the report Amount Amount confirmed report expenditures as per as eligible by report borrower In USD in USD 1 1 12.08.2013 54 54 2 2 74.02.2014 20,270 20,270 3 3 06.08.2014 99,607 99,607 4 4 09.02.2015 39,672 39,872 5 5 02.07.2015 246,010 246,010 This statement is to be read in conjunction with the notes to and forming part of the grant project financial statements set out on pages 8 to 10.
The General Secretariat of the Government As of June 05, 2015 and for the period from March 14,2012 to June 05, 2015 Notes to the grant project financial statements I Activity (a) According to Government Decision no 405/2007 regarding the functioning of the General Secretariat of the Goverment (GSG), this public institution functions as a legal entity subordinated to the Prime-minister, with the role of supporting technically the decision-making process at the level of the Government Within the GSG, the Chancellery of the Prime-minister coordinates the planning, formulation, monitoring and evaluation process concerning public policies at the level of the central administration, including the methodological support (b) Project Objectives and Description. The objective of the Project is to assist the Recipient's General Secretariat of the Government (GSG) to build its institutional and human resources capacity for monitoring and evaluation of structural reforms. The Project consists of the following parts: Component 1: Development of a logical framework for monitoring and evaluation (M&E) across public sector for major governmental strategic and programming documents Provision of goods, consultants' services and training to: (a) review of the current monitoring and evaluation system at the central level with regard to major strategic and programmatic documents; and (b) design and adopt a framework for results-based monitoring and evaluation in the form of an online database. Component 2; Enhancing the capacity of line ministries to monitor the implementation of the Government action plans derived from the recommendations of the functional reviews Provision of goods, consultants' services and training to enhance the capacity of line ministries to monitor the implementation of the Recipient's Government action plans derived from the recommendations of the functional reviews by- (a) developing outcome indicators for the objectives contained in the action plans; (b) developing a number of pilots in selected line ministries where an in-depth monitoring and evaluation (M&E) exercise based on the developed outcome indicators and existing output indicators will be conducted; and (c) monitoring of horizontal reform measures dealing with the improvement of EU funds absorption, included in the Recipient's Government action plans pursuant to the functional reviews. Component 3: Capacity building for M&E in Center of Government and line ministries This refers to provision of goods, consultants' services and training to develop modular training program for staff of the GSG and line ministries in various aspects of the monitoring and evaluation system. Component 4: Project implementation Provision of goods, consultants' services, including audit, for the Project implementation activities carried out by the GSG;
The General Secretariat of the Government As of June 05, 2015 and for the period from March 14, 2012 to June 05, 2015 9 2 Significant accounting policies 2.1 Statement of compliance The grant project financial statements were prepared in accordance with the accrual basis of accounting, the relevant points of the Grant Agreement TF098645 and requirements of the World Bank guidelines. Significant accounting policies are disclosed below. 2.2 Functional and presentation currency The national currency of Romania is the Romanian leu ("RON"), which is the Institution's functional currency, since this currency best reflects the economic substance of the underlying events and transactions of the Institution. These grant project financial statements are presented in Romanian lei, since the project management believes that this currency is more useful for the users of these grant project financial statements. 2.3 Grant project financing The financing received in the framework of the agreement is recorded in the statement of financial position as "Accumulated grant financing" and is recognized at each replenishment The unused amounts available at the end of the Project, which are subject to be returned are being deducted from the amounts of "Accumulated grant financing" and recognized as payable. In addition, the current period funds received are disclosed in the statement of Project sources and uses of funds. 2.4 Grant project expenses The Grant project expenses are recognized on the accrual basis of accounting. The accumulated Project expenses are disclosed in the statement of financial position under non-current assets. In addition, expenses are disclosed in the statement of Project sources and uses of funds and statement of uses of funds by Project main categories of expenditures. Items of intangible assets procured within the scope of the Project are not recognized as such and no depreciation and amortization is calculated in respect of them. Instead, their initial cost is disclosed in the note 7. 2.5 Planned expenses The Project planned expenses are the Project budget defined by the grant agreement, which includes the grant financing. 3. Closing date of the Project According to the agreement the Project closing date was defined as June 05, 2015. 4. Accumulated Project financing In RON Grant funds For the period from March 12,2012 to June 05. 2015 Grant received 1,566,897 Amount to be returned (bank account balance) (103,048) Amount to be retumed (not approved by the IDF) - Total 1.463,849
The General Secretariat of the Government As of June 05, 2015 and for the period from March 14,2012 to June 05, 2015 10 5. Accounts payable This is the amount to be paid to the IDF. It comprises the unused amount and expenses available at the end of the Project, which were not used. Amounts to be returned to the [DF made up RON 103,048. 6. intangible assets The items intangible assets of the Project include software and consultants reports. Within the scope of the Project no amortization has been calculated in respect of them. The procured and expensed items are the property of the Institution. The initial costs of the intangible assets procured within the scope of the Project are presented below Intangible Items As of In RON June 05, 2015 Software 104,952 Consultants reports 1,125.911 1.230.863 7. Subsequent events As of July 09, 2015 the remaining balance of the Grant funds transferred to the Grant operating account made up RON 82,227 after the Institution paid RON 20,476 for audit services and had RON 345 as bank commissions. In July 09, 2015 the Institution paid that amount back to the IDF.