* Deloitte Public Disclosure Authorized€¦ · * Deloitte U CETAURJETOFC VITAU AAIGNTUA AAD RJC...

U

* DeloitteU

CETAURJETOFCVITAU AAIGNTUA AAD RJC

Uiacn gemn o 19V

AUIEUIACILSAEETUN AAEETLTEUo h eredd3 eebr21

UU

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CENTRAL PROJECT OFFICEVietnam - Managing Natural Hazards ProjectFinancing Agreement No. 5139-VN

UUUUU

TABLE OF CONTENTSU* CONTENTS PAGE(5)

PART I FINANCIAL STATEMENTS

Statement of the Central Project Management Office 2-3

Independent Auditors' Report 4-6

Balance Sheet 7

Statement of Incomes and Expenditures 8

Statement of Designated Account 9-10

Statement of Loan Withdrawals 11 - 12

Notes to the Financial Statements 13 - 18

PART II REPORT OF INDEPENDENT AUDITORS ON INTERNAL CONTROL 19

PART III INDEPENDENT ASSURANCE REPORT ON COMPLIANCE 20

PART IV MANAGEMENT LETTER 21 - 27

UUU

U1

PART I

FINANCIAL STATEMENTS

C]* cH

E)

* vi


STATEMENT OF THE CENTRAL PROJECT MANAGEMENT OFFICE

The Central Project Management Office of Vietnam - Managing Natural Hazards Project (the "CPMO")presents this report together with the financial statements of Vietnam - Managing Natural HazardsProject (the "Project") for the year ended 31 December 2016.

Central Proiect Management Office

The members of the Project Management Office who held office during the year and to the date of thisreport are as follows:

Mr. Nguyen Hong Phuong Acting Head in charge of the Central Project Office

Mr. Nguyen Canh Tinh Deputy Head of the Central Project Office cum Director of the Project

Mr. Dang The Luong Chief Accountant

Resoonsibilities of the Central Project Manaaement Office

The CPMO is responsible for preparing the financial statements of the Project which comprise theBalance Sheet as at 31 December 2016, the Statement of Income and Expenditures, the Statementsof Designated Account, the Statements of Loan Withdrawals for the year then ended and Notes to thefinancial statements, including a summary of significant accounting policies which give a true and fairview of the financial position of the Project as at 31 December 2016 as well as its income,expenditures for the year then ended, in accordance with the accounting convention and theaccounting policies set out in Note 2 and Note 3 of the Notes to the financial statements and thecovenants contained in the Financing Agreement No. 5139-VN. In preparing these financialstatements, the CPMO is required to:

* Select suitable accounting policies and then apply them consistently;* Make judgments and estimates that are reasonable and prudent;* State whether applicable accounting principles have been followed, subject to any material

departures disclosed and explained in the financial statements;* Prepare the financial statements on the going concern basis unless it is inappropriate to presume

that the Project will continue in operation; and* Design and maintain an effective internal control over compliance with requirements that could

have a direct and material financial effect on the financial statements, as well as over financialreporting for the purpose of properly preparing and presenting the financial statements so as tominimize errors and frauds; and take responsibility for its assertion as to the effectiveness of suchinternal control.

The CPMO is responsible for ensuring that proper accounting records are kept, which disclose, withreasonable accuracy at any time, the financial position of the Project and that the financial statementscomply with the accounting convention and the accounting policies set out in Note 2 and Note 3 of theNotes to the financial statements. The CPMO is responsible for ensuring that the funds have beenused as intended for the Project and for complying with Financing Agreement No. 5139-VN and lawsand regulations applicable to the Project. The CPMO is also responsible for safeguarding the assets ofthe Project and hence for taking reasonable steps for the prevention and detection of frauds and otherirregularities.

2

U


STATEMENT OF THE CENTRAL PROJECT MANAGEMENT OFFCIE (Continued)U

The CPMO confirms that they have complied with the above requirements in preparing these financialstatements.

F on behalf of the CPMO

BANQUAN L

TRUNG LUOND CAC O AN T

Nguyen Canh TinhDeputy Head of the CentralProject Office cumDirector of the Project

Hanoi, 31 October 2017

U

*

01U~ ri

*3

UDeloitte Vietnam Company Ltd.12A Floor, Vinaconex Tower,"D e lo itte . 34 Lang Ha Street, Lang Ha Ward,Dong Da District, Hanoi, VietnamTel :+844 6288 3568Fax:+844 6288 5678www.deloitte.com/vn

No.: J IVN1A-HN-BC

INDEPENDENT AUDITORS' REPORT

T. The Central Project Office (CPO)The Central Project Management Office of Vietnam - Managing Natural HazardsProject (CPMO)

Opinion

We have audited the financial statements of Vietnam - Managing Natural Hazards Project (theU "Project"), which comprise the Balance Sheet as at 31 December 2016, Statement of Income and

Expenditures, Statements of Designated Account, Statements of Loan Withdrawals for the year thenended, and Notes to the financial statements, including a summary of significant accounting policies.

In our opinion:

* The accompanying financial statements give a true and fair view of the financial position ofthe Project as at 31 December 2016, and of its income and expenditures for the year thenended in accordance with the accounting convention and the accounting policies set out inNote 2 and Note 3 of the Notes to the financial statements.

* The Statements of Designated Account give a true and fair view of the balance of theDesignated Accounts as at 31 December 2016 and the Project's receipts and disbursementsvia the Designated Account for the year then ended in accordance with the relevant covenantsof Financing Agreement No. 5139-VN and prevailing relevant regulations established by theWorld Bank.

* The withdrawal applications were reconciled to the statements of expenditures (SOEs)prepared by the CPMO for the year ended 31 December 2016 and those SOEs wereadequately supported.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Ourresponsibilities under those standards are further described in the Auditors' Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Project inaccordance with the ethical requirements that are relevant to our audit of the financial statements,and we have fulfilled our other ethical responsibilities in accordance with these requirements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

Basis of Accounting

We draw attention to Note 2 and Note 3 of the Notes to the financial statements, which describes theaccounting convention and the summary of the significant accounting policies. The financialstatements are prepared in accordance with the accounting convention and the accounting policies setout in Note 2 and Note 3 of the Notes to the financial statements and the requirements of the WorldBank.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee(UDTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legallyseparate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients.Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

4

* Deloitte,uINDEPENDENT AUDITORS'REPORT (Continued)

Other matter

The financial statements of the Project for the year ended 31 December 2015 were audited byanother auditor who expressed an unmodified opinion on those statements on 28 June 2016. Somefigures in the prior reporting period have been retrospectively adjusted as described in Note 5 ofNotes to the financial statements.

Responsibilities of the CPMO and those charged with governance for the FinancialStatements

The CPMO is responsible for the preparation of the financial statements in accordance with theaccounting convention and the accounting policies set out In Note 2 and Note 3 of the Notes to thefinancial statements, and for such internal control as the CPMO determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud orerror.

In preparing the financial statements, the CPMO is responsible for assessing the Project's ability tocontinue as a going concern, disclosing, as applicable, matters relating to going concern and using thegoing concern basis of accounting unless the CPMO either intends to liquidate the Project or to ceaseoperations, or has no realistic alternative but to do so,

Those charged with governance are responsible for overseeing the Project's financial reportingprocess.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditors' reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with International Standards on Auditing (ISAs) will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting 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 auditprocedures that are appropriate in the circumstances.

• Conclude on the appropriateness of the CPMO's use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the Project's ability to continue as agoing concern, If we conclude that a material uncertainty exists, we are required to drawattention in our auditors' report to the related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on theaudit evidence obtained up to the date of our auditors' report. However, future events orconditions may cause the Project to cease to continue as a going concern.

Evaluate the appropriateness of accounting policies used and the reasonabfeness ofaccounting estimates, if any, and related disclosures made by the CPMO.

M

W

. Deloitte,

INDEPENDENT AUDITORS REPORT (Continued)

Auditors' Responsibilities for the Audit of the Financial Statements (Continued)

We communicate with those charged with governance and the CPMO regarding, among other matters,the planned scope and timing of the audit and significant audit findings, including any significantdeficiencies in internal control that we identify during our audit.

e-VIE NAM o

l nh Nguyen Thanh HuongDeputy General Director AuditorAudit Practising Registration Certificate Audit Practising Registration CertificateNo. 0036-2013-001-1 No. 1415-2013-001-1

DELOITTE VIETNAM COMPANY LIMITED

31 October 2017Hanoi, S.R. Vietnam

6

a

CENTRAL PROJECT OFFICEVietnam - Managing Natural Hazards Project FINANCIAL STATEMENTSFinancing Agreement No. 5139-VN For the year ended 31 December 2016

BALANCE SHEET

As at 31 December 2016

31/12/2016 31/12/2015Notes VND (Restated) VND

ASSETS

I. Current assets 163,616,904,425 209,411,917,105

Cash 6 81,927,060,405 140,968,594,592Cash on hand 334,116,221 465,641,454Cash in bank, State treasury 81,592,944,184 140,502,953,138Accounts receivable 80,997,381,020 68,434,792,513Prepayments to suppliers 7 62,829,108,003 51,791,954,935Internal receivables 8 982,506,692Other receivables 9 17,185,766,325 16,642,837,578Other current assets 692,463,000 8,530,000Advances to employees 692,463,000 8,530,000

TOTAL ASSETS 163,616,904,425 209,411,917,105

RESOURCES

I. Liabilities 164,494,465,878 99,913,386,7261

Current liabilities 164,494,465,878 99,913,386,726)Trade payables 10 162,374,633,713 95,821,371,830Taxes and amounts payable to 32,861,059 2,112,000the State budget

Payables to employees 285,508,289 124,122,208Other payables 1,518,248,911 3,549,655,874Internal payables 283,213,906 416,124,814

TOTAL RESOURCES 164,494,465,878 99,913,386,726

NET ASSETS (877,561,453) 109,498,530,379

(DEFICIT)/SURPLUS OF INCOME OVER (877,561,453) 109,498,530,379

UITURES

QUAN

Nguyen Canh Tinh Dang The LuongDeputy Head of the Central Chief AccountantProject Office cum Director ofthe Project


The accompanying notes are an integral part of these financial statements7

U

az o 1,4 c se;c >. Q o VtVN eli' 'q

rre>4r N -4 u N

ku N hC

cg Cg' 0P1 4 ý4.r4ofý

.aV E ~ N-ON o lO m tV >

Av æfn i ocUce N ýcl i - :

z

æN i Z rsm

S* NM N N

rl'4M,n 14 CD 0 4 Qý U

Em % -i . M L

CO N C) ko n t

cOD fn vorn CD ' N

. I Cli q e e L is u iN C O C N o0 rn

EN -

Em

aua

z en

'ø S

ZE M

m. E

4- æ <L c z~ U.

En ai4& oZ C

0EnLn -- 0 Nu

M. 1.> -z z -3R.

ZO øN m z o~'c

*tP E4 m o e. Ø$4o 5 o u q." Ne i .I e .. E- o

ti>

m....~~~d E a LUoee O

- .k .c I n -?. (3-3 -> X

*r m >>C

x ILI

Lu w mw m w

m o a 0 -I

cnpo c pQ z <m

« Cw

r.~~0 0 0UEe a -*t t2 220L a

LU Z j q mr< :" C

wErn .to M Md7

M4S Ø <2 N


STATEMENT OF DESIGNATED ACCOUNT

For the period : From 01 January 2016 to 31 December 2016Account Number : 18102 0000000 378

Account Holder Central Project Office

Depository bank :Vietnam Joint Stock Commercial Bank for Industry and Trade- Hanoi Western Branch

Address No. 8 Ho Tung Mau, Mai Dich, Cau Giay, HanoiFinancing Agreement 5139-VN

Currency unit USD

PART A - ACCOUNT ACTIVITIES Amount

Opening balance (01/01/2016) 3,980,485.34

Add:

- Total amount replenished by the World Bank for the year 8,901,985.85

Deduct:

- Total amount withdrawn 12,136,175.61- Bank charges 14.00

Closing balance (31/12/2016) 746,281.58

PART B - ACCOUNT RECONCILIATION

1. Amount advanced by the World Bank 10,000,000.002. Total advances to Designated Account as at 31/12/2016 10,000,000.00

3. Closing balance of Designated Account as at 31/12/2016 746,281.58

4. Add: Amount withdrawn but not yet claimed 9,253,627.42

5. Add: Bank charges (if not included in lines 4 above) 91.00

A6. Total advances to Designated Account as at 31/12/2016 10,000,000.00

'TRUNGLt

CA0140 Li

yen anh inhDang The LuongU Deputy Head of the Central $Chief AccountantProject Office cum Director of

* the Project

* Hanoi, 31 October2017

UE

U The accompanying notes are an integral part of these inancial statements9

6.TtlavneUoDsgae couta t3/221 000000

UCENTRAL PRO3ECT OFFICEVietnam - Managing Natural Hazards Project FINANCIAL STATEMENTSFinancing Agreement No. 5139-VN For the year ended 31 December 2016

STATEMENT OF DESIGNATED ACCOUNT

For the period From 01 January 2016 to 31 December 2016

Account Number 45361616

Account Holder Project Management Office under Part 2 of the Project

Depository bank Vietnam Prosperity Joint Stock Commercial Bank - Hoan Kiem Branch

Address 3rd floor, 72 Tran Hung Dao, Hoan Kiem, HanoiFinancing Agreement : 5139-VN

Currency unit : USD

PART A - ACCOUNT ACTIVITIES Amount

Opening balance (01/01/2016) 1,834,957.99

Add:

- Total amount replenished by the World Bank for the year 1,998,781.60

Deduct: N

- Total amount withdrawn 1,984,799.12 1

Closing balance (31/12/2016) 1,848,940.47

PART B - ACCOUNT RECONCILIATION

1. Amount advanced by the World Bank 2,000,000.00

2. Total advances to Designated Account as at 31/12/2016 2,000,000.00

3. Closing balance of Designated Account as at 31/12/2016 1,848,940.47

4. Add: Amount withdrawn but not yet claimed 151,039.53

5. Add: Bank charges (if not included in lines 4 above) 20.00

6. Total advances to Designated Account as at 31/12/2016 2,000,000.00

BANUIUANZ TRUNG I

00 YI




.

⋯，⋯仗 ⋯⋯；⋯写⋯

CENTRAL PROJECT OFFICEVietnam - Managing Natural Hazards Project FINANCIAL STATEMENTSFinancing ftreement No. 5139-VN For theyear ended 31 December 2016

STATEMENT OF LOAN WITHDRAWALS - PART 2

For the financial year ended 31 December 2016

Withdrawal Application Amount claimed Amount disbursed Difference

No. Date Currency Part 2 Date Amount Amount Note

Designated account

PMO-07 20/09/2016 USD 562,692.31 06/10/2016 562,692.31 -

PMO-08 09/11/2016 USD 1,111,818.10 22/11/2016 1,111,818.10 -

PMO-09 20/12/2016 USD 324,271.19 23/12/2016 324,271.19 -

1,998,781.60 L995,781.60 -

PHAJ

0 UTRU,

0 CAG D Ldl

08

Nguyen Canh Tinh Dang The LuongDeputy Head of the Central >1 Chief AccountantProject Office cum Director ofthe Project



UCENTRAL PROJECT OFFICEVietnam - Managing Natural Hazards Project FINANCIAL STATEMENTSFinancing Agreement No. 5139-VN For the year ended 31 December 2016

NOTES TO THE FINANCIAL STATEMENTSThese notes are an integral part of and should be read in conjunction with the accompanying financial statements

1. GENERAL INFORMATION

Vietnam - Managing Natural Hazards Project (the "Project") operates under FinancingAgreement No. 5139-VN dated 13 September 2012 signed between the Socialist Republic ofVietnam and the International Development Association (IDA).

The objective of the Project is to increase the resilience of the people and economic assets tonatural hazards in selected river basins of the Project Provinces within the overall frameworkof the Recipient's National Disasters Prevention, Response and Mitigation Strategy Towards2020.

The Project consists of the following parts:

Part 1: Strengthening Disaster Risk Management Institution, Information Systems andPlanning.Part 2: Strengthening Weather Forecasting and Early Warning Systems.Part 3: Community-Based Disaster Risk Management.Part 4: Priority Disaster Risk Mitigation Investments.Part 5: Project Management, Monitoring and Evaluation.

Parts 1,3,4 and 5 of the Project are implemented by the Central Project Management Office ofVietnam - Managing Natural Hazards Project ("CPMO") under the Central Project Office - fyMinistry of Agriculture and Rural Development and 10 Provincial Project Management Units )H("PPMU") TE

Part 2 of the Project is implemented by Project Management Office at National Center for AMHydro - Meteorological Forecasting ("PMO") - Ministry of Natural Resources and Environment.

The Project is implemented in 10 central provinces including Thanh Hoa, Nghe An, Ha Tinh,Quang Binh, Quang Tri, Quang Nam, Quang Ngai, Da Nang, Binh Dinh and Ninh Thuan.

Total Project's fund is USD 180,000,000.In which:IDA fund: SDR 99,400,000 (equivalent to USD 150,000,000)Central Counterpart fund: USD 5,630,000Provincial Counterpart fund: USD 24,370,000

The Project started on 13 September 2012 (the date of the Financing Agreement) and isexpected to be completed by 31 March 2019.

2. ACCOUNTING CONVENTION AND FINANCIAL YEAR

Accounting convention

The financial statements, expressed in Vietnam Dong (VND), are prepared under the historicalcost convention except for the Statements of Designated Account and Statements of LoanWithdrawals which are expressed in original currencies. These financial statements areprepared in accordance with the accounting policies set out in Note 3 of the Notes to thefinancial statements.

The financial statements were prepared on the basis of aggregation of figures and internaltransaction offset of Project implementing units, including CPMO, PMO and PPMUs.

Financial year

The Project's financial year begins on 01 January and ends on 31 December.

13

UCENTRAL PROJECT OFFICEVietnam - Managing Natural Hazards Project FINANCIAL STATEMENTSFinancing Agreement No. 5139-VN For the year ended 31 December 2016

NOTES TO THE FINANCIAL STATEMENTS (Continued)These notes are an integral part of and should be read in conjunction with the accompanying financial statements

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies, which have been adopted by the CPMO in the preparationof these financial statements, are as follows:

Foreign currency translation

Transactions arising in foreign currencies are translated into Vietnam Dong (VND) atexchange rates ruling at the transaction date. Closing balances of monetary itemsdenominated in foreign currencies are not retranslated as the guidance of the Accountingsystem applicable to Owner units in the public service units issued in conjunction with CircularNo. 195/2012/TT-BTC dated 15 November 2012 by the Ministry of Finance.

Foreign exchange differences are not cash flows. However, the effect of changes in foreignexchange rates is reported separately in the Statement of Incomes and Expenditures in orderto reconcile with balances of assets and liabilities in the balance sheet.

Recognition of funds

Funds are recognized on cash basis.

Recognition of expenditures

Expenditures are recognized on accrual basis.

4. DESIGNATED ACCOUNTS

Designated Accounts are bank accounts in United States Dollar (USD) opened at VietnamJoint Stock Commercial Bank for Industry and Trade - Hanoi Western Branch for Part 1, 3, 4and 5 of the Project and Vietnam Prosperity Joint Stock Commercial Bank - Hoan Kiem Branchfor the Part 2 of the Project for the implementation of the Project's activities. Payments out ofDesignated Account are for expenditures in accordance with the relevant covenants ofFinancing Agreement No. 5139-VN and relevant regulations established by the World Bank. Inwhich, withdrawals from the Designated Account include eligible expenditures under parts ofthe Project which the CPMO and PMO manages and distributes funds to implementing units inaccordance with regulations of the Financing Agreement.

Interest arising on the balance of the Designated Account is presented on other payables onthe Balance Sheet and is used to pay service banking fees in accordance with Circular No.218/2013/TT-BTC dated 31 December 2013 of the Ministry of Finance. Circular No.218/2013/TT-BTC was expired on 01 November 2016 and replaced by Circular No.111/2016/TT-BTC dated 30 June 2016 of the Ministry of Finance.

S5. RETROSPECTIVE ADJUSTMENT

According to the report on the audit of construction activities and the management and use ofinvestment capital of Vietnam-Managing Natural Hazards Project (VN-Haz) WB5 issued by theState Audit on 27 October 2016, total amount proposed for financial management from theProject's implementation date to 31 December 2015 is VND 22,960,507,598. Accordingly, theaccumulated expenditure to 31 December 2015 eliminated is VND 19,817,345,608. TheCPMO decided to retroactively adjust the Project's financial statements for the year ended 31December 2015 figures in accordance with the above audit report as follows:

14



31/12/2015(Previously Retrospective 31/12/2015

reported) adjustment (After restatement)

Item VND VND VND

Balance sheetOther receivables 391,917,329 16,250,920,249 16,642,837,578Trade payables 99,387,797,189 (3,566,425,359) 95,821,371,830

Statement of income and expendituresExpenditures 1,291,780,275,609 (19,817,345,608) 1,271,962,930,001In which:Part 1 26,661,682,214 (13,580,394,000) 13,081,288,214Part 2 91,933,747,040 (3,399,612,166) 88,534,134,874Part 3 28,784,270,614 (43,242,000) 28,741,028,614Part 4 1,078,870,305,452 (417,595,175) 1,078,452,710,277Part 5 65,530,270,289 (2,376,502,267) 63,153,768,022

6. CASH31/12/2016 31/12/2015

VND VN 4

Cash on hand 334,116,221 465,641,45PMO - 10,000,00PPMU Thanh Hoa 69,316,600 245,177,986PPMU Nghe An (Provincial Project Management Unit - Dyke) 16,698,000 2,781,000PPMU Ha Tinh (Cua Sat Subproject) 117,961,500 117,460,400PPMU Ha Tinh (Phuc Long Nhuong Subproject) 55,295,200 -

PPMU Quang Binh 21,927,426 8,648,068PPMU Quang Tri - 27,424,000PPMU Quang Nam 36,000,000 -PPMU Quang Ngai 246,600 4,470,000PPMU Binh Dinh 2,092,000 49,680,000PPMU Ninh Thuan 10,050,000 -PPMU Nghe An (Provincial Project Management Unit - 3,000,000Agriculture and Rural Development Sector)

PPMU Da Nang 1,528,895

Cash in bank, State treasury 81,592,944,184 140,502,953,138

CPMO 16,698,716,032 89,056,642,023PMO 41,382,780,108 38,418,725,405PPMU Nghe An (Provincial Project Management Unit - Dyke) 1,600,679 1,600,679PPMU Nghe An (Provincial Project Management Unit - 1,024,433,410 962,790,231Agriculture and Rural Development Sector)PPMU Quang Tri 3,327,493,296 2,275,602,470PPMU Da Nang 3,370,038,273 781,337,058PPMU Quang Nam 1,469,348,183 634,989,848PPMU Quang Ngai 516,136,569 96,945,871PPMU Binh Dinh 4,381,603,783 1,330,472,423PPMU Thanh Hoa 3,072,291,569 2,854,348,897PPMU Ha Tinh (Cua Sot Subproject) 1,783,526,804 3,107,398,768PPMU Ha Tinh (Phuc Long Nhuong Subproject) 3,052,404,311PPMU Quang Binh 1,156,491,518 738,719,713PPMU Ninh Thuan 356,079,649 243,379,752

81,927,060,405 140,6,69U618634,9

511356 9,4,7

CENTRAL PROJECT OFFICEVietnam - Managing Natural Hazards Project FINANCIAL STATEMENTSFinancing Agreement No. 5139-VN For the year ended 31 December 2016NOTES TO THE FINANCIAL STATEMENTS (Continued)These notes are an integral part of and should be read in conjunction with the accompanying financial statements

7. PREPAYMENTS TO SUPPLIERS

U31/1212016 31/12/2015*VND VND

Que Huong Construction and Trading Joint Stock Company 7,521,914,300Nghe An Hydraulic Construction and Electric -Mechanical 3097000000 3,097,000,000JSCStichting Deltares 1,708,734,578 3,184,294,633Phu Hoa Construction ISC 3,950,803,000Truong Thinh Investment and Construction JSC 5,090,000,000Others 41,460,655,625 45,510,660,302

,6Z829, 108,003 51,791,954,935

a. INTERNAL RECEIVABLES

Internal receivables mainly include the cost of project management allocated to the Vietnam -* Managing Natural Hazards Project (VN-Haz) belonging to the Counterpart fund which hasbeen advanced to the account of the Central Project Office in 2016, but not yet used up. Suchamount will be recovered through the allocation of project management costs in 2017./

*9. OTHER RECEIVABLES

UOther receivables balance mainly represents receivables from contractors and loan receivable kfrom other projects in accordance with State Audit's Report dated 27 October 2016 on theU audit of construction activities and the management and use of investment fund of Vietnam-Managing Natural Hazards Project (VN-Haz) W135.

*10. TRADE PAYABLES

* 31/12/2016 31/12/ 2015VNDI (Restated) VND

Vietnam Academy of Water Resources 829,900,000 13,513,030,000Phu Hoa Construction 3SC 17,158,866,000LASI Material Science and Technology JSC 39,867,610,500Others 104,518,257,213 82,308,341,830

1 62,374,633,713 95,821,371,830

11. IDA FUND

*31112/2016 31/12/2015USn VND equivalent USD VND equivalent

Advance to Designated Account 12,000,00000 256,406,342,892 12,000,000.00 256407,976,789Replenishment to Designatedc Account 54,024,130.63 1,165,198,855,214 43,123,363.18 925,421,134,809

*65,024,130.63 1,421,505,198,106 55,123,363.18 __1,131,829,111,598

16



12. COUNTERPART FUND31/12/2016 31/1212015

VND VND

CPMO 35,207,528,680 16,248,465,780PMO 14,867,021,965 11,085,542,714PPMU Nghe An (Provincal Project Management Unit - Dyke) 15,394,128,262 10,894,128,262PPMU Nghe An (Provincal Project Management Unit - 23,351,908,000 12,337,098,000Agriculture and Rural Development Sector)PPMU Quang Tr 19,300,000,000 16,800,000,000PPMU Da Nang 6,760,074,972 5,025,330,682PPMU Quang Nam 12,796,947,018 10,352,000,000PPMU Quang Ngai 12,477,296,700 11,128,360,700PPMU Binh Dinh 10,413,546,000 8,400,973,000PPMU Thanh Hoa 10,744,500,908 7,202,635,908PPMU Ha Tinh (Cua Sot Subproject) 13,477,227,250 8,076,425,000PPMU Ha Tinh (Phuc Long Nhuong Subproject) 10,739,349,000 12,555,660,500PPMU Quang Binh 51,238,291,093 46,724,000,000PPMU Ninh Thuan 26,464,035,000 16,179,000,000

263,231,854,848 193,009,620,546

EL13. PROJECT IMPLEMENTING EXPENDITURES

Project implementing expenditures by Implementing unit:-

Accumulated up to Accumulated up to31/1212016 31/12/2015

VND VND

CPMO 57,125,859,555 41,579,726,167PMO 158,358,658,720 88,534,134,874PPMU Nghe An (Provincial Project Management Unit - Dyke) 163,495,597,102 133,819,173,006PPMU Nghe An (Provincial Project Management Unit - 166,631,994,944 79,601,765,316Agriculture and Rural Development Sector)PPMU Quang Tri 127,643,713,038 115,287,338,416PPMU Da Nang 39,406,479,302 7,597,278,476PPMU Quang Nam 166,102,805,518 151,334,024,574PPMU Quang Ngai 62,351,563,258 51,176,358,829PPMU Binh Dinh 70,301,370,000 59,244,072,000PPMU Thanh Hoa 233,544,688,440 219,520,006,357PPMU Ha Tinh (Cua Sot Subproject) 31,817,356,508 13,579,897,000PPMU Ha Tinh (Phuc Long Nhuong Subproject) 232,139,799,706 211,643,042,416PPMU Quang Binh 158,383,351,748 82,630,467,324PPMU Ninh Thuan 30,779,693,960 16,415,645,246

1,698,082,931,799 1,271962,930,001

1,12,337298,0

17

168000,0



14. COMPARATIVE FIGURES

Comparative figures are the figures of the Project's audited financial statements for the yearended 31 December 2015 which audited by another auditor. Certain figures in the priorreporting period have been retrospectively adjusted as described in Note 5.

BAN 4 0QU

TRUN G


Hanoi, 31 October2017

U

UUUUU

U1

UUU

UUU

U

UATIUEOTO NEEDN UIOSO

INENLUOTO

UUU

W ATI

Deloitte Vietnam Company Ltd.12A Floor, Vinaconex Tower,D e lo tte,34 Lang Ha Street, Lang Ha Ward,Dong Da District, Hanoi, VietnamTel :+844 6288 3568Fax:+844 6288 5678www.deloitte.com/vn

REPORT OF INDEPENDENT AUDITORS ON INTERNAL CONTROL

T-In: The Central Project Office (CPO)The Central Project Management Office of Vietnam - Managing Natural HazardsProject (CPMO)

We have audited, in accordance with International Standards on Auditing, the financial statements ofVietnam - Managing Natural Hazards Project (the "Project") for the year ended 31 December 2016and issued the independent auditors' report thereon dated 31 October 2017 expressing an unmodifiedopinion on those financial statements.

In connection with our audit of the Project's financial statements, we also examined the effectivenessof internal control over compliance with requirements that could have a direct and material financialeffect on the financial statements as well as of internal control over financial reporting.As stated in the Statement of the Central Project Management Office on page 2 and 3, the CentralProject Management Office is responsible for designing and maintaining effective internal control overcompliance with requirements that could have a direct and material financial effect on the financialstatements as well as over financial reporting for the purpose of properly preparing and presentingthe financial statements so as to minimize errors and frauds; and take responsibility for its assertionsas to the effectiveness of such internal control. Our responsibility is to express an opinion on theeffectiveness of internal control over compliance with requirements that could have a direct andmaterial financial effect on the financial statements as well as internal control over financial reportingbased on our examination.

Our examination was conducted in accordance with International Standard on AssuranceEngagements (ISAE) 3000. That standard requires that we comply with ethical requirements and planand perform our procedures to obtain reasonable assurance about whether, in all material respects,the Project has maintained effective internal control over compliance with the requirements that couldhave a direct and material financial effect on the financial statements as well as internal control overfinancial reporting.

Our examination included obtaining an understanding of internal control over compliance withrequirements that could have a direct and material financial effect on the financial statements as wellas of internal control over financial reporting, testing, and evaluating the design and operatingeffectiveness of the internal control, and performing such other procedures as we considerednecessary in the circumstances to obtain sufficient appropriate evidence on which to base our opinion.Because of inherent limitations of internal control over financial reporting, including the possibility ofcollusion or improper management override of controls, material misstatements due to error or fraudmay occur and not to be detected. Also, projections of any evaluation of the effectiveness of theinternal control over financial reporting to future periods are subject to the risk that controls maybecome inadequate because of changes in conditions, or that the degree of compliance with thepolicies or procedures may deteriorate.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

In our opinion, the Central Project Management Office has maintained, in all mate p-1 respects,effec ive internal control over compliance with requirements that could have a dir and material

ect on the Project's financial statements as well as over financial rep ing for the yearID mber 2016.

c6NG TY* so T*CH NOIM At

an Anh Nguyen Thanh HuongDeputy General Director AuditorAudit Practising Registration Certificate Audit Practising Registration CertificateNo. 0036-2013-001-1 No. 1415-2013-001-1DELOITTE VIETNAM COMPANY LIMITED31 October 2017Hanoi, S.R. Vietnam

Deloitte refers to one or more of Deloitte TOUChe Tohmatsu Limited, a UK private company limited by guarantee

("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legallyseparate and independent entitles. DTTL (also referred to as "Deloitte Global") does not provide services to clients.Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

19

UUUUUUU

UUUU

UUU

PART III* Yc

* INDEPENDENT ASSURANCE REPORT ON COMPLIANCE ThAN

**UUUU

UUUUUUUUUUUU

UDeloitte Vietnam Company Ltd.12A Floor, Vinaconex Tower,SD elo itte. 34 Lang Ha Street, Lang Ha Ward,Dong Da District, Hanoi, VietnamTel :+844 6288 3568Fax:+844 6288 5678www.deloitte.com/vn

INDEPENDENT ASSURANCE REPORT ON COMPLIANCE

[9i The Central Project Office (CPO)The Central Project Management Office of Vietnam - Managing Natural HazardsProject (CPMO)

We have audited, in accordance with International Standards on Auditing, the financial statements ofVietnam - Managing Natural Hazards Project (the "Project") for the year ended 31 December 2016and issued the independent auditors' report thereon dated 31 October 2017 expressing an unmodifiedopinion on those financial statements.

In connection with the audit of our financial statements, we also performed procedures on theProject's compliance with the Financing Agreement No.5139-VN, laws and regulations that could havea direct and material financial effect on the Project's financial statements for the year ended 31December 2016 (the "requirements").

The Central Project Management Office is responsible for complying with Financing AgreementNo.5139-VN, laws and regulations applicable to the Project. Our responsibility is to express an opinionon the Project's compliance with the requirements based on our procedures. We limited our tests ofcompliance to the requirements, and we did not test compliance with all laws and regulationsapplicable to the Project.

We performed our work in accordance with International Standard on Assurance Engagements (ISAE)3000. That standard requires that we comply with ethical requirements and plan and perform ourprocedures to obtain reasonable assurance about whether, in all material respects, the Project hascomplied with the requirements.

An assurance engagement to report on the compliance with the requirements at the Project involvesperforming procedures to obtain evidences about whether the Project's activities are free of materialnoncompliance with the requirements, including obtaining an understanding of the internal controlrelevant to the Project's compliance with the requirements. The procedures selected depend on theauditors' judgment, including the assessment of risks that the Project does not comply with therequirements and whether such noncompliance could have a direct and material financial effect on theProject's financial statements. Our procedures included testing the compliance with the requirementsthat we consider necessary to provide reasonable assurance that the requirements are complied bythe Project.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

In our opinion, the Central Project Management Office has complied, in all material respects, withFinanc Agreement No. 5139-VN, laws and regulations that could have a direc <and material

f on the Project's financial statements for the year ended 31 December 016.

/+Co)NG Ty

vIrT NAkM,C

K 6n Anh Nguyen Thanh HuongDeputy General Director AuditorAudit Practising Registration Certificate Audit Practising Registration CertificateNo. 0036-2013-001-1 No. 1415-2013-001-1

DELOITTE VIETNAM COMPANY LIMITED

31 October 2017Hanoi, S.R. Vietnam

Deloitte rieers to one or more of Deloitte Touche fohmatsu Limited, a UK private company limited by guarantee("DTTL"), its network of rnemor firms, and their related entitles. DTTL and each of its member firms are legallyseparate and ndependen ntties. DTTiL (also referred to as 'Deloitte Global") does not provide services to clients.Please see www.deloitte.com/about lot a more detailed des iption of DTL and its membe hes

20

* Deloitte Public Disclosure Authorized€¦ · * Deloitte U CETAURJETOFC VITAU AAIGNTUA AAD RJC...

Documents

Transcript of * Deloitte Public Disclosure Authorized€¦ · * Deloitte U CETAURJETOFC VITAU AAIGNTUA AAD RJC...