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The State Road Agency of Ukraine
Special financial statements and Independent Auditor's Report
For the year ended 31 December 2013
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Page
Independent auditor's report 3
Summary of sources and use of funds 6
Use of International Bank for Reconstruction and Development funds by the Project components 7
Statement of withdrawals from the Loan account 8
Statement of the Special account 9
Statement of withdrawals from the Special Account 10
Statement of funds withdrawal through the statement of expenditures procedure 11
Reconciliation between Project Implementation Unit and International Bank for Reconstruction and Development 12
Notes to the Special financial statements 13
1.
2.
3.
4.
5.
6.
7.
Project description
Basic accounting principles
Expenditures by categories and sources of financing
Civil works
Supervision services
Subsequent events
Economic environment
World Bank Audit Documentation Checklist
13
14
15
15
16
16
17
18
Grant Thornton
To the State Road ">\gency of Ukraine
Fizkultury str., 9,
Kyiv, 03680
Ukraine
TOB «fPAHT TOPHTOH II EriC• Byn., Tepell(8HKiBCbKa, 11-A K~>~ls, 01004. YKpaiHa
T + 380 44 461 97 21 F +380 44 461 97 20
www.grantthornton.ua
GRANT THORNTON LEGIS LLC
11-A Tereschenkivska str. Kyiv, 01004, Ukraine
T + 380 44 461 97 21
F +380 44 461 97 20
www.grantthornton.ua
\Ve have audited special financial statements of the State Road Agency of Ukraine
(hereinafter Ukravtodor) for the year ended 31 December 2013 related to the Second
Roads and Safety Improvement Project 01ereinafter- Project) financed from the funds of
the Loan of the International Bank for Reconstruction and Development (hereinafter
IBRD) J'\!2 8195-UA and prepared by the management of the State Road Agency of
Ukraine (Ukravtodor) according to the requirements, set forth in the Loan .Agreement
between Ukraine and International Bank for Reconstruction and Development (hereinafter
-Loan Agreement), the accounting principles, disclosed in Note 2 to these special fmancial
statements and in accordance \Vith regulations of the \v'orld Bank.
Special financial statements include:
• Summary of sources and use of funds as at 31 December 2013;
• Statement of expenditures for 2013;
• Statement of Special Account for the year ended 31 December 2013;
• Notes to the special financial statements.
A1anagement 'J
Management 1s responsible for the preparation and fair presentation of these special
financial statements, which are prepared in accordance with the Loan A.greement and the
accounting principles, disclosed in Note 2 to these statements and in accordance with
regulations of the \Vorld Bank. Management's responsibility includes: compilation,
implementation and maintenance of internal control relevant to the preparation and fair
presentation of special financial statements that are free from material misstatements,
whether due to fraud or error; selection and use of appropriate accounting policies; and
accounting estimates for particular circumstances.
Auditor'J Rnpomibili(y
Our responsibility is to express an opinion on these special Bnancial statements based on
our audit. \\!e conducted our audit in accordance with International Standards on A.uditing.
Those standards require to obtain reasonable assurance on whether special t1nancial
statements are free from material misstatements.
Audit, Tax, Advisory, Law Member of Grant Thornton International Ud Subject to local regulations
Grant Thornton
Audit in•wlves performance of procedures in order to obtain audit evidence about the
amounts and disclosures in the special financial statements. Selected procedures depend on
auditor's judgment and include the assessment of the risk of material misstatement of special
financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity's preparation and fair presentation of
the special financial statements in order to design audit procedures that are appropriate in
particular circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. An audit also includes assessment of the
appropriateness of accounting policies used and the reasonableness of accounting estimates
made by the management, as well as assessment of the overall presentation of special
financial statements.
\X1e believe that the audit eYidence we haYe obtained 1s sufficient and appropriate to
proYide a basis for our audit opinion.
Opinion a.r to Financial Statements
In our opinion, the special financial statements of the State Road Agency of Ukraine
(Ukravtodor), related to the Second Roads and Safety Improvement Project, financed from
the funds of the International Bank for Reconstruction and Development .N"g 8195-UA as
for the year ended 31 December 2013 give a true and fair view of performance of the State
Road Agency of Ukraine (Ukravtodor) under the contract requirements, set forth in the
Loan "1\greement, the accounting principles, disclosed in Note 2 to these statements and in
accordance with regulations of the \Vorld Bank.
Opinion as to Statements ~/Expenditures
In our opinion, with respect to the statements of expenditures for the whole period of the
Project implementation, adequate supporting documentation was maintained to support
applications to the Bank for reimbursement of expenditures incurred as well as
expenditures stated in applications, are subject to financing in accordance with conditions
of the Loan of the International Bank for Reconstruction and Development NQ 8195-UA.
Opinion as to Statement of Special Account
In our opinion, financial statements on Special account give a true and fair view of the
financial position on the Special Account of the Loan of the International Bank for
Reconstruction and Development _N'g 8195-UA as at 31 December 2013 and up to the
indicated date, in accordance with regulations of the \'Forld Bank.
BaJi.r for presmtation of the Jinattcial statemettt and restridiott on distribution
\Vithout qualifying our opinion, we draw attention that special financial statements of State
Road Agency of Ukraine (Ukravtodor), related to the Second Roads and Safety
Improvement Project, financed from the funds of the International Bank for
Reconstruction and Development Loan .N"g 8195-UA, for the year ended 31 December
2013, are prepared in order to comply with the requirements, set forth in the Loan
Agreement, the accounting principles, disclosed in the Note 2 to these statements and in
accordance 'W1.th regulations of the World Bank and shall not be used for other purposes.
Audit. Tax, Advisory. Law Member of Grant Thornton lnternaliona! L!a Subject to !oca! regulations
Grant Thornton
Afatter.r
\Vithout qualifying our opmwn, we draw attention to Note 1 to the special financial
statements, wh~tethe last availability date under the International Bank for Reconstruction
and Development Loan N!!8195:.UA is 31 April2017.
27 June 2014
GRj\NT THORNTON LEGIS LLC
Audit, Tax, Advisory, law Member of Grant Thornton International Ud Subject to local regu!ahons
Second Roads and Safety Improvement Project
SUMMARY OF SOURCES AND USE OF FUNDS
For the year ended 31 December 2013
OPENING BALANCE
Special account with NTSU
Transit account with Ukreximbank (multicurrency) Transit account with OPERU STSU (UAH)
TOTAL
SOURCES OF FUNDS:
Loan of the World Bank
TOTAL FINANCING
PROJECT EXPENDITURES:
Category 1 : Goods, works, non-consulting services, consultants' services and training
TOTAL PROJECT EXPENDITURES
CLOSING BALANCE
Special account with STSU
For the year ended 31 December
2013
81,016,363
88,101,311
87,374,296
87,374,296
Transit account with Ukreximbank (multicurrency) Transit account with OPERU STSU (UAH)
TOTAL
For the whole Unused period of the
Budget Loan Project balance
82,141,363 450,000,000 367,858,637
89,226,311 457,084,948 367,858,637
87,374,296 455,959,948 368,585,652
88,499,296 457,084,948 368,585,652
727,015
Note (*) - financing of Ukravtodor for the entire period of the Project realization comprises 7,084,948 UAH. The methodology of the translation from the national currency into the loan currency is disclosed in Note 4 on page 15.
Notes on pages 13-17 are an integral part of these financial statements.
6
7 Second Roads and Safety Improvement Project
USE OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT FUNDS BY THE PROJECT COMPONENTS
ended 31 December 2013
For the year For the whole period of the Unused Loan
ended 31 Project Budget balance December 2013
Use of the World Bank funds by the Project components 450,000,000 369,710,652
Part 1. Rehabilitation of M03 road 1.1. Civil works 79,016,363 79,016,363 1.2. Supervision services 1,258,687 1,258,687 1.3. Bank fee 14,298 14,298
Total in Part 1 80,289,348 80,289,348
80,289,348 81,414,348 450,000,000 368,585,652 Use of Ukravtodor's funds by the Project zcomponents 7,084,948
Part 1. Rehabilitation of M03 road
Total in Part 1 7,084,948 7,084,948 7,084,948
TOTAL PROJECT EXPENDITURES 87,374,296 88,499,296 457,084,948 368,585,652
SUMMURY STATEMENT BY SUB-CATEGORIES:
Civil works 86,101,311 86,101,311 Supervision services 1,258,687 1,258,687 455,949,948 368,585,652 Bank fee 14,298 14,298
fee TOTAL PROJECT EXPENDITURES 87,374,296 88,499,296 457,084,948 368,585,652
Notes on pages 13-17 are an integral part of these financial statements.
8 Second Roads and Safety Improvement Project
STATEMENT OF WITHDRAWALS FROM THE LOAN ACCOUNT
ended 31 December 2013
Application Date of Withdrawals USD
N2 Category
withdrawal Currency Equivalent Equivalent
12.03.13 USD 7,263,850 7,263,850 2 15.03.13 EUR 3,733,387 4,855,270 3 12.03.13 USD 6,955,699 6,955,699 4 15.03.13 EUR 3,575,007 4,649,296 5 DA-B 14.03.13 USD 1,000,000 1,000,000 6 1 19.06.13 USD 2,029,876 2,029,876 7 24.07.13 EUR 1,043,292 1,376,519 8 19.06.13 USD 1,460,455 1,460,455 9 24.06.13 EUR 750,627 990,378
11 20.08.13 USD 2,328,142 2,328,142 12 23.08.13 EUR 1,196,591 1,601,996 13 20.08.13 USD 1,216,822 1,216,822 14 23.08.13 EUR 625,408 837,296 15 30.08.13 USD 2,324,406 2,324,406 16 04.09.13 EUR 1,194,670 1,581,624 17 03.09.13 USD 1,215,622 1,215,622 18 06.09.13 EUR 624,791 823,537 19 03.10.13 USD 1,903,335 1,903,335 20 08.10.13 EUR 978,253 1,329,935 21 1 03.10.13 USD 1,256,397 1,256,397 22 1 08.10.13 EUR 645,748 877,894 23 DA-B 29.10.13 USD 1,000,000 1,000,000 24 29.10.13 USD 3,590,351 3,590,351 25 01.11.13 EUR 1,845,326 2,538,983 26 29.10.13 USD 1,788,840 1,788,840 27 01.11.13 EUR 919,406 1,265,011 28 19.11.13 USD 3,619,030 3,619,030 29 22.11.13 EUR 1,860,066 2,515,925 30 18.11.13 USD 3,214,407 3,214,407 31 21.11.13 EUR 1,652,102 2,229,182 32 18.12.13 USD 3,231,098 3,231,098 33 23.12.13 EUR 1,660,681 2,272,975 34 18.12.13 USD 3,447,210 3,447,210
Summary by categories: Total by category 1 79,016,363
Notes on pages 13-17 are an integral part of these financial statements.
Second Roads and Safety Improvement Project
STATEMENT OF THE SPECIAL ACCOUNT
ended 31 December 2013
THE STATE EXPORT-IMPORT BANK OF UKRAINE Ace. No DA·B-25136080055000 Project: P127156 -Second Road And Safety Improvement Project Related Loan: TF 56961
OPENING BALANCE
Earnings: Funds received
Replenishment of the World Bank
TOTAL FUNDS RECEIVED
Deduction: expenditures
Transfer offunds to the transit account TOTAL EXPENDITURES
RETURN OF FUNDS FROM THE TRANSIT ACCOUNT
Notes on pages 13-17 are an integral part of these financial statements.
2,000,000
2,000,000
(1 ,289,472) (1,289,472)
9
I
Second Roads and Safety Improvement Project
STATEMENT OF WITHDRAWALS FROM THE SPECIAL ACCOUNT
For the year ended 31 December 2013
Date of withdrawal
Ukraine Ukraine Ukraine Ukraine Ukraine Ukraine Ukraine Ukraine Ukraine
Total for 2013:
Summary by categories Advances to the transit accounts
02.04.13 16.04.13 03.07.13 31.07.13 09.08.13 14.08.13 11.10.13 08.11.13 13.11.13
Notes on pages 13-17 are an integral part of these financial statements.
Withdrawal
USD 752,474 USD 7,762 USD 16,480 USD 23,770 USD 321 USD 651 USD 143,407 USD 339,043 USD 1,686
10
USD
752,474 7,762
16,480 23,770
321 651
143,407 339,043
1,686
1,289,472
11 Second Roads and Safety Improvement Project
STATEMENT OF FUNDS WITHDRAWAL THROUGH THE STATEMENT OF EXPENDITURES PROCEDURE
ended 31 December 2013
Expenditures reported to the IBRD during the reporting period, in accordance with the
Part of expenditures to be reported to the Bank during subsequent reporting periods
Factual expenditures paid, according to the
Category 1
Total
20,365 20,365
LIST OF STATEMENTS OF EXPENDITURES PROVIDED BY THE PROJECT IMPLEMENTATION UNIT TO THE BANK DURING 2013 For the year ended 31 December 2013
Number of application Category 1
Total
10 722,750 722,750
Total for the reporting period: 1,269,107 1,269,107
Notes on pages 13-17 are an integral part of these financial statements.
12 Second Roads and Safety Improvement Project
RECONCILIATION BETWEEN PROJECT IMPLEMENTATION UNIT AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
For the year ended 31 December 2013
loan amount in accordance with the Agreement
Expenditures : Project expenditure
Category 1 : Goods, works, non-consulting services, consultants' services and training
Category 2: Front-end fee
Total expenditure
Balance on the Special account Balance on the Transit account
Total funds available
Total deductions: Balance as at 31 December 2013
Notes on pages 13-17 are an integral part of these financial statements,
80,289,348
1,125,000
(81 ,414,348)
710,528
16,487
(727,015)
450,000,000
13 Second Roads and Safety Improvement Project
NOTES TO THE SPECIAL FINANCIAL STATEMENTS
ended 31 December 2013
1. PROJECT DESCRIPTION
According to the Loan Agreement dated 11 October 2012 between Ukraine and International Bank for
Reconstruction and Development (hereinafter the Bank), the Bank agreed to pro,,ide Ukraine with the
Loan in amount of 450 million USD in order to assist in financing the Second Roads and Safety
Improvement Project.
According to Section 3.()1 Article III of the Loan Agreement, Ukraine declared its commitment to the
objectives of the Project. To this end, Ukraine shall cause the Project to be carried out in accordance '"~th
the provisions of Article V of the General Conditions, the Subsidiary Agreement dated 11 October 2012
and the Project Agreement dated 11 October 2012.
Per the Project Agreement between Ukraine and the Bank dated 11 October 2012 (hereinafter- the Project
Agreement), the Project shall be carried out by the State Road Agency of Ukraine (hereinafter -Ukravtodor).
The objectives of the Project are to improve the condition and quality of sections of the l\1-03 road Kyiv -
Kharkiv - Dov:zhansky and to increase safety on roads.
The Project consists of the follmving parts:
Part 1: Road Rehabilitation
Rehabilitation of about 108 kilometers of the Kyiv - KharkiY Dov:zhansky road, including
civil works for the rehabilitation and strengthening of the existing road, \v~dening of certain
sections from two lanes to four lanes, and building thxee bypasses around populated areas.
Part 2: Road Safety Improvement
Improving road safety along various road corridors or sections in Ukraine.
Part 3: Institutional Support and Strengthening
Provision of technical advisory services, training and equipment to enhance road management
within the territory of the Borrower according to international practice, including:
a) in the areas of road safety, an assessment of approximately 12,000-15,000 kilometers of
main road, including the coding of data based on the iRAP methodology, data analysis and
road safety "star rating" of road sections, identification of the most suitable and appropriate
road safety measures and interventions for each road, and detailed design of road safety
measures for the high-priority sections of corridors; and
b) the support for the development of a Strategic Investment Program for Road Sector
Development until 203().
Categories of appropriate expenditures to be financed from the Loan funds:
Category
services, consultants' services and training
2. Front-end Fee
Amount, US dollars(*)
448,875,000
1,125,000
Share of expenditures to be financed, except for taxes
100% 0.25% of the Loan amount according to
Section 2.03 of the Loan Agreement According to Section 2.07 of the Loan
14 Second Roads and Safety Improvement Project
NOTES TO THE SPECIAL FINANCIAL STATEMENTS
For the year ended 31 December 2013
The closing date of the Project is 31 December, 2016. All payments must be completed until 31 April2017.
For the purpose of the Project implementation, Ukravtodor has established the Project Implementation
Unit (PILl) acting \Vithin the State Enterprise "Ukrainian road investments" and has respective resources
and staff with appropriate skills, according to the authorities acceptable for the Bank.
By letter dated December 24, 2012 Bank informed the Ministry of Finance of Ukraine and Ukravtodor of
the fulfillment of the previous conditions of the Loan Agreement becoming effective.
By letter dated 11 March 2013 the \\'orld Bank declared that reasonable costs of currency conversion can be
financed by the proceeds of the Loan. Herewith, they arc considered as eligible costs and can be financed
under the r~r••cn•,,.'P of the expenditures of this project, namely under the category of «Goods, works, non~
consulting services, consultants· sen·ices and training».
2. BASIC ACCOUNTING PRINCIPLES
Special Bank Account
According to the terms of the Subsidiary Agreement and in order to facilitate the Project performance, the
National Treasury of Ukraine has opened and maintains Special account in US dollars with the State
Expordmport Bank on conditions approved by IBRD.
IBRD has set the minimum application amount that can be paid directly from the Loan account of 800,000
US dollars (or equivalent of that amount in a specific payment currency). All other payments made
according to applications with amounts lower than the above limit, should be paid from the special account.
According to the limit set by the IBRD the amount exceeding 4,000,000 US dollars cannot be deposited on
the special account at one time.
Receipts and Expenditures Recognition
The Project keeps its records and prepares its financial statements under the cash method. The receipts arc shown when they arc performed on bank accounts, which are supported by the advances from IBRD. The expenses arc registered at the date when there is funds withdrawal.
Foreign Currency Transactions
The accompanying financial statements are presented in US dollars. Transactions performed in other
currencies are recalculated in US dollars at the effective exchange rate on the date of transaction, unless
otherwise stated.
Statements of Expenditures
Statements of expenditure arc used for recognition of expenses under the Loan paid from the Special
account during a calendar quarter.
According to additional instructions of funds withdrawal set by the IBRD in the letter dated 11 October
2012, all expenditures paid from the Special account should be included in statements of expenditures for
corresponding periods and submitted to the IBRD.
15 Second Roads and Safety Improvement Project
NOTES TO THE SPECIAL FINANCIAL STATEMENTS
ended 31 December 2013
Together \v:ith statements of expenditure primary documents arc submitted (counterfoils, invoices, works
acts, etc.) regarding the following payments: goods and consultancy services as regards the
contracts cost not less than 200,000 in USD equivalent, contractual works at cost not less than 2,000,000 in
l;SD equivalent, contractual services of individual consultants at cost not less than 100,000 in USD
equivalent.
3. EXPENDITURES BY CATEGORIES AND SOURCES OF FINANCING
The Project expenditures are carried out through the two accounts opened in the Ukrainian banks. Transit
mulricurrency account in the OJSC State Export-Import Bank of Ukraine was opened in order to pay for
the Project related works and services in all currencies, except for payments in national currency. To make
payments in the national currency, UAH account was opened in the State Treasury Service of Ukraine
(further STSU).
4. CIVIL WORKS
Rehabilitation of the road M-03 on the section M-03 Kyiv - Kharkiv- Dovzhansky
Civil contract works at the expense of the IBRD funds were performed based on two Contracts entered in
during the year 2013. The Contracts provide for the defects liability period of the Contractors for damages
that lasts 730 days upon signing the road section acceptance certificate. During the period the Contractors
undertake to remedy all damages appeared due to the fault of the Contractors during the construction, as
well as to complete all insignificant works in progress at the acceptance date.
Performance rime under the Contracts No1.1 and No1.2- 540 davs.
1. Contract .\i\!2.1 between Ukravtodor and Todini Costruzioni S.p.A (hereinafter- Contract .\!.>1.1)
was signed on 4 January 2013. The Contract provides for civil works for capital repair of M03 Kyiv
Kharkiv-Do"\'Zhansky road on the sections from 210+000 km to 220+782 krn (Lot 2.1), from
228+000 km to 239+ 317 krn (Lot 2.2), from 258+000 to AO 27 5+000 krn (Lot 2.3).
2. Contract .\i\!2.2 between Ukravtodor and Todini Costruzioni S.p.A. (hereinafter Contract .\i\!1.1)
was signed on 4 January 2013. The Contract provides for civil works for capital repair of M03 KyiY
KharkiY-Dovzhansky road on the sections from 282+000 km to 300+550 km (Lot 2.4), from
300+550 km to 323+000 krn (Lot 2.5), from 329+050 km to 333+250 krn (Lot 2.5).
Civil works under Contract .\i\!1.1 commenced on 4 April 2013 in accordance with the Engineer's Letter
dated 3 April 2013.
Civil works under Contract .N\!1.2 commenced on 4 April 2013 in accordance \Vi.th the Engineer's Letter
dated 3 April2013.
Second Roads and Safety Improvement Project
NOTES TO THE SPECIAL FINANCIAL STATEMENTS
For the year ended 31 December 2013
Summary of perfonnance of Contracts .NI? 1.1-1.2
Contract N21.1
Total during the Project realization
Initial full contractual
cost {without VAT)*
121,064,170
236,992,478
Cost of addition~ I
works**
Contractual cost with additional
works
Financed from lncludina VAT the World payment at
Bank's Loan the expense of Ukravtodor
44,363,316 3,873,956
79,016,363 7,048,948
16
Financina of civil works
from all sources
48,237,272
86,101,311
Note (*)- in this and other tables the initial contractual cost, the cost of additional works and the VAT amount paid by Ukravtodor were translated from the national currency into the Loan currency at fixed rates of the National Bank of Ukraine used when assessing bid proposals for the comparison of total contractual amounts in single currency. Relevant works estimate basis when entering into contracts is determined in the World Bank's guidances.
Note (**) - additional works are the cost of civil (road, bridge, earth) works, other expenses of organization and performance of construction by the Contractors. All additional works increasing the initial contractual cost were previously agreed between the Contractor, Supervision Engineer and Ukravtodor. The Bank's consents were previously obtained for the Contractual initial cost increase by Ukravtodor (where required by corresponding procurement guidances of the World Bank).
5. SUPERVISION SERVICES
In order to appoint Engineers for the engmeermg supervtston of the contract ciYil works under Parts 1
within the Second Road and Safety ImproYement Project realization, the State Road Agency of Ukraine
concluded two contracts for consultancy services pr<wision.
Contract between UkraYtodor and IRD Engineering S.r.L was concluded on 12 September 2012 in total
amount of USD 1,483,100. According to contractual terms supervision services include supervision of
works for reconstruction of the road M-03 KieY-Kharkiv-Donhanskij, which include the capital repair of
sections of M03 Road ( 10,8 km, 11,3 km and 17,0 km long) including roads, bridges, drainage and ancillary
\vorks (supervision of civil works of Lots N!! 2.1-2.3). Contract period is 42 months.
Contract between UkraYtodor and Egis International in association \v'ith Euro-Ukraina Consulting LLC was
concluded on 12 September 2012 in total amount of EURO 1,273,215. According to contractual terms
supervision services include supervision of works for reconstruction of the road M-03 Kiev-KharkiY
Dovzhanskij, which include the capital repair of sections of M03 Road (17 ,4 km, 22,4 km Ta 4,3 km long),
including roads, bridges, drainage and ancillary works (supervision of civil works of Lots N!! 2.4-2.6).
Contract period is 42 months.
6. SUBSEQUENT EVENTS
According to the Amendment dated 18 April 2014 to the Contract N2l.2 between Ukravtodor and Todini
Costruzioni S.p.A., both parties agreed as follows: the contractor shall be entitled prior to submission of any
Statement to substitute a Bank guarantee for the half amount of retention money to be retained under the
contract, in amount of 2,5°/o of the accepted contract amount.
17 Second Roads and Safety Improvement Project
NOTES TO THE SPECIAL FINANCIAL STATEMENTS
For the year ended 31 December 2013
\cc:or•::lm:g to the Amendment dated 16 April 2014 the total nlue of the Contract between Ukravtodor and
t.~n~nrteermg S.r.I. in 2013 was decreased by EURO 20 due to the t1exibility of the staff in the
performance of services in the Contract.
7. ECONOMIC ENVIRONMENT
At the end of 2013 and in the beginning of 2014 political and economic situation in Ukraine escalated due to mass protests in Ukraine, which led to the resignation of the president, the creation of an interim government and holding of early presidential elections. On 7 June 2014 a newly elected president of Ukraine began to perform his duties, which partially stabilized tbe socio-political situation in the country.
There is further uncertainty about the situation in eastern regions of Ukraine in which government forces conduct anti-terrorist operations, as well as about the Autonomous Republic of Crimea, because after conducting illegitimate referendum in the March 2014, AR of Crimea was annexed to the Russian Federation.
The stability of the Ukrainian economy depends on the effectiveness of government implementation of political, economic and social reforms and the possibility of obtaining external fmancial assistance from international financial institutions and Government partners.
Between January and June 2014, the Ukrainian hryvnia devalued signitlcantly against major world currencies that would affect the future stability of the Ukrainian economy.
WORLD BANK AUDIT DOCUMENTATION CHECKLIST
A. Applicable accounting standards noted
B. Applicable auditing standards noted
C. Opinion rendered on all forms of withdrawals:
1. Statement of Expenditures
2. Special Account
D. All sources of financing for the project are noted
A. Revenue Earning Entity (all of the following are required):
1. Balance sheet
2. Cash Flow Statement
3. Income Statement
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):
I. Statement of Expenditure (SOE) Statement
2. Special Account Statement
lm. Notes to the Financial Statements
l1v. Reconciliation between World Bank records and project records
18