FinDev Audit Report 2003

Mgraham

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• Publié par: Mefer
• Nombre de lectures: 39
• Langue: English

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REPORT on audit examination of the accuracy of the data presented on balance-sheet and tax statement as of January 1, 2004 of “Finance for Development” LLC Baku cityJune 24, 2004 We, the auditor Avazov Kamil Sherail and chief specialist Shikhaliyeva Lala Rauf of the “M&J Accuracy Consulting” LLC audit company acting on the basis of license #AT\029 dated October 19, 2001 of the Audit Chamber of Azerbaijan Republic have conducted audit examination of the accuracy of the data presented in the balance-sheet and tax statement as of January 1, 2004 according to the agreement # AP 010410 of March 9, 2004 with “Finance for Development” LLC non-banking credit organization (referred to as “Company” hereinafter). Audit was commenced on June 18, 2004 and ended on June 24, 2004. Below-mentioned persons carried the responsibility for the companys operations during the audited period: Chair of Board of Directors – Aliyev Jalal Sadig Chief Accountant– Maharov Abulfaz Kamran Audit examinationwas conducted based on the auditing programs approved by the Audit Chamber of the Azerbaijan Republic, and the documents submitted by the company, with the consent of the Chair of Board of Directors and in presence of the Chief Accountant. Previous audit examination of the company has been held by the auditor Avazov Kamil Sherail and chief specialist Shikhaliyeva Lala Rauf of the “M&J Accuracy Consulting” LLC acting on the basis of license #AT\029 dated October 19, 2001 of the Audit Chamber of Azerbaijan Republic. General information about the company “Finance for Development” limited-liability non-banking credit organization was registered at the Ministry of Justice of Azerbaijan Republic on September 23, 2002 with certificate #1067, and its Charter was confirmed. The founder of the organization is “OXFAM” International; Humanitarian Organization registered in the Charity Committee of England and Wales. “Finance for Development” is a not-for-profit finacial institution established to provide financial support to low-income persons, small entrepreneurs, internally displaced persons and refugees by issuing them microloans or in other form stipulated in the Charter. Finacial sources necessary to “Finance for Development” to carry out its activities consist of legally received grants and donations, as well as receipts from own microcredit operations. The Charter Capital of “Finance for Development” forms 34,237.0 thousand manats, 24,455.0 thousand manats out of which was deposited in cash as monetary contribution and 9,782.0 thousand manats as in-kind contribution consisted of fixed assets. In order to conduct limited bank operation in both local and foreign currency “Finance for Development” was given a special agreement (licence) with the letter 02-10/110by the National Bank of Azerbaijan Republic on April 11, 2003. The special agreement was registered withon April 10, 2003, in the Central list of the National Bank. The Centre was 133-GB entered into state registration at the Ministry of Justice of Azerbaijan Republic with certificate # D-1 005 on February 15, 1996. On April 15, 2003 by the decision of Shovkat Alizadeh, “Finance for Development” founders representative, “Finance for Development – Barda” Branch was established. On May

6, 2003 Barda Branch was given a permission #133-GB/1 “for issuing loans” by the National Bank. Going through registration at the Nasimi District Tax Department on November 26, 2002, “Finance for Development” has got IIN(taxpayers ID number) #140112276. Certificate #0076291 dated November 26, 2002 and identification number 3194182 was given to the company by the State Statistical Committee of Azerbaijan Republic over the entry of economic entities into State List. Juridical address of the company: H.Aslanov 115/8, Baku Monetary funds, bank and cash transactions The company has current bank account # 735042AZM3409-01 and dollar account 735402USD3419-01 with Azerbaijan International Bank Yevlakh Branch, and current bank account # 360113AZM3803-01 and dollar account 360113USD3813-01 with ABB Sahil Branch. While examining bank transactions of the company, it was revealed that these transactions were carried out in compliance with existing normative documents. It was revealed due to submitted bank documents that bank account balance as of January 1, 2004 formed 128,552.9 thousand manats after payments to suppliers, treasury, budgetary and non-budgetary foundations and different expenditure at the expense of the receipts from various sources during the year. While examining the appropriateness of cash transactions the following was revealed: Analytical records of the companys cash transactions are kept in the Treasure Ledger. Cash balance in the Companys treasure formed 85,785.8 thousand manats at the end of the the report period having cash receipts from various sources and expenditures on prescribed puproses during the year. Salary settlements Salary fund totals 280,270.3 thousand manats with companys employees annual number being 13 on average. For salaries were funded due to grant, social deductions to State Social Protection Fund were not calculated. Payroll tax was calculated on the employees salaries at amount of 41,368.0 thousand manats and paid out on destination. Fixed assets During the year fixed assets were purchased at amount of 50,520.5 thousand manats, were deposited by the Founder to the Charter Capital at amount of 9,782.0 thousand manats, were sold at amount of 984.0 thousand manats, in accordance with relevant norms depreciation was calculated on the balance value of the fixed assets to at amount of 18,825.8 thousand manats and the residual value of the fixed assets formed 40,492.7 thousand manats at the end of the year. According to appropriate norms tax on property at amount of 29.2 thousand manats was calculated. Financial results The company received interest income on disbursed loans at amount of 325,392.5thousand manats, incomefrom sales of fixed assets at amount of 984.0 thousand manats, other income at amount of 8,849.6 thousand manats, total 335,226.1 thousand manats income in 2003. During the year the company spent expenses at amount of 248,334.9 thousand manats to this effect and ended the year with profit of 86,891.2 thousand manats. The profit earned by the company was invested in expansion of the credit portfolio according to the Charter. The composition of the expenditure is presented in the profit tax declaration.

Stock and material valuables The company does not possess any as of January1, 2004 Settlements with debtors and creditors The company had accounts receivable of 30,969.7thousand manats and accounts payable of 22,033.7 thousand manats as of January1, 2004. The list of receivable and payable accounts is attached to the act. The state of accounting Company uses journal – voucher system in accounting. Data on the original documents are posted to accounts in general ledgers and circulation sheets. It was defined as a result, accounting records examined selectively during audit process were kept in compliance with the Law on Accounting. Suggestions on audit findings A positive qualified audit opinion is expressed to the company and it is suggested to keep accounting records with taking into consideration the amendments to relevant legislative acts. Enclosures Copies of balance-sheet statement, relevant declarations, reference on the movement of assets accounts, list of debtors and creditors. Our signatures confirm the correctness of the act. Auditor of “M&J Accuracy”K.Avazov Chief specialist of “M&J Accuracy”L.Shikhaliyeva Chair of Board of Directors Finance for Development J.Aliyev Chief Accountant Finance for Development A.Maharov I received a copy of the act ___________________ A.Maharov

AT #-7041 AUDIT OPINION on audit examination of the data presented in financial-accounting statements of “Finance for Development” LLC as of January 1, 2004 Baku cityJune 24, 2004 According to the agreement #AP 010410 dated March 9, 2004between “M&J Accuracy Consulting” LLC acting on the basis of license #AT\029 dated October 19, 2001 of the Audit Chamber of Azerbaijan Republic and “Finance for Development” LLC,the audit examination of accuracy of the data presented in the companys financial-accounting statements as of January 1, 2004 was carried out by the auditor Avazov Kamil Sherail. Audit was commenced on June 18, 2004 and ended on June 24, 2004. The management of the ordering company bears the responsibility for the accuracy of documents submitted for audit examination. My duty is to give an evaluation to the customers financial position and accuracy of items in annual accounting reports as a result of audit examination of the submitted documents. I am responsible for the considerations expressed in this opinion. I have fulfilled audit procedures in order to make these considerations. During audit examination, confirmative materials were checked according to the submitted documents, also accounting principles of the ordering organization were estimated. In regard with my official duty, as a result of the audit examination it was defined that accounting and annual balance-sheet correspond to legislative guidelines and the Charter. In accounting view, annual balance-sheet describes the juridical persons asset, financial position and income in proper manner with reality. I consider that enough audit proofs were gathered in order to form an audit opinion as a result of the conducted audit examination. Opinion is compiled on June 24, 2004 in two copies with equal validity. Oneof the copies remain with the ordering organization, the other is held with the audit company. Audit companys address: J.Jabbarly 40, Baku Director of “M&J Accuracy Consulting” LLC E.Jafarov