BAKER TILLY AZERBAIJAN Audit, Tax and Consulting Demirchi Tower, 16th floor Khojaly Avenue, 37 AZ1025, Baku Azerbaijan

http://documents.banquemondiale.org/curated/fr/992091500365848420/text/AZ-P120321-CMMP-Audit-Report-2016.txt

CAPITAL MARKETS
MODERNIZATION PROJECT
LOAN NUMBER 8024-AZ
Special-Purpose Financial Statements and
Independent Auditors' Report
For the Period from January 1, 2016 to July 31, 2016


CAPITAL MARKETS MODERNIZATION PROJECT
TABLE OF CONTENTS
Page
INDEPENDENT AUDITORS' REPORT 1-2
SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM JANUARY 1, 2016
TO JULY 31, 2016:
Special-purpose balance sheet 3
Statement of summary of sources and uses of funds 4-5
Statement of uses of funds by project components 6-7
Statement of designated account 8
Statement of expenditure and summary sheet withdrawal schedule 9-10
Notes to the special-purpose financial statements 11-16


BAKER TILLY
AZERBAIJAN
Audit, Tax and Consulting
Demirchi Tower, 16th floor
Khojaly Avenue, 37
AZ1025, Baku
Azerbaijan
T:+ 994 (12) 404 7 666
F:+ 994 (12) 404 7 667
office@bakertilly.az
www.bakertilly.az
INDEPENDENT AUDITORS' REPORT
To the Management of the Project Implementation Unit of the Capital Markets Modernization Project:
We have audited the accompanying Special-Purpose Financial Statements of the Capital Markets
Modernization Project (the "Project"), which comprise the Special-Purpose Balance Sheet as at July 31,
2016 and the Statement of Summary of Sources and Uses of Funds, the Statement of Uses of Funds by
Project Components, the Statement of Designated Account and the Statement of Expenditure and
Summary Withdrawal Schedule ("SOE and SSWS") for the period from January 1, 2016 to July 31, 2016,
and a summary of significant accounting policies and other explanatory notes (collectively referred to as
the "Special-Purpose Financial Statements") financed under the International Bank for Reconstruction and
Development (the "BRD") through loan agreement number 8024-AZ (the "Loan Agreement") and the
Government of the Swiss Confederation ("SECO") through Grant Agreement.
Management's Responsibility for the Special-Purpose Financial Statements
Management is responsible for the preparation and fair presentation of these Special-Purpose Financial
Statements in accordance with International Public Sector Accounting Standard ("IPSAS") "Financial
Reporting under the Cash Basis of Accounting" issued by the International Public Sector Accounting
Standards Board of the International Federation of Accountants ("IFAC-PSC") and relevant provisions of
the financing agreements as described in Note 2 to the Special-Purpose Financial Statements and for such
internal control as management determines is necessary to enable the preparation of the Special-Purpose
Financial Statements that are free from material misstatement, whether due to fraud or error.
Auditors'Responsibility

Our responsibility is to express an opinion on these Special-Purpose 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 Special-Purpose Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
these Special-Purpose Financial Statements. The procedures selected depend on the auditors' judgment,
including the assessment of the risks of material misstatement of the Special-Purpose 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-Purpose 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 entity'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
Special-Purpose Financial Statements.
An independent member of Baker Tilly International