To: ARD, Inc. Macedonia Local Government Activity SKOPJE

AUDITOR’S REPORT

We have audited the accompanying consolidated financial statements of The Municipality of Veles (in the following text “the Municipality“), which comprises of the Balance Sheet as of 31 December 2007, the Statement of Revenues and Expenses and Statement of Changes in the Operating Fund for the year then ended, and a summary of significant accounting policies and other explanatory notes. The consolidated financial statements consist of statements of the following accounts of the Municipality: Budget account of the Municipality of Veles; Regular account of the Municipality of Veles; Designated account (930) the Municipality of Veles; Designated account (937) the Municipality of Veles; Donation account (78520); and Donation account - grant (78516).

Management's responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and far presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility Our responsibility is to express an opinion on these 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 whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the 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 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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor's opinion In our opinion, the consolidated financial statements of “The Municipality of Veles” give a true and fair view of the financial position of the Municipality as of 31 December 2007, as well as the operating results and the changes in the operating fund for the year than ended, in accordance with the Budgets and Budget users Accounting Law and International Accounting Standards for the public sector on cash basis published in the Republic of Macedonia.

Skopje, 19 December 2008

Manager,

Zvonko Kocovski, certified auditor

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STATEMENT OF REVENUES AND EXPENSES For 2007 (In thousands of MKD) NOTE Budget Regular Donation Grant Designated Designated Total Elimination Consolidated account account account account account account (78520) (78516) (930) (937)

Tax revenues 4 70.995 - - - - - 70.995 - 70.995 Non-tax revenues 5 4.136 - - - - - 4.136 - 4.136 Capital revenues 6 1.103 - - - - - 1.103 - 1.103 Transfers and donations 7 41.294 102.07 5 606 650 105.782 9.040 259.447 (111.115) 148.332

Total revenues 117.528 102.07 5 606 650 105.782 9.040 335.681 (111.115) 224.566

Expenses for employees 18.996 18.996 - - 69.233 9.040 116.265 (28.036) 88.229 Operating expenses 44.801 44.801 266 451 35.501 - 125.820 (44.801) 81.019 Reserves 355 355 - - - - 710 (355) 355 Social transfers 3.558 3.558 340 - - - 7.456 (3.558) 3.898 Capital expenditures 34.365 34.365 - 193 274 - 69.197 (34.365) 34.832

Total expenses 8 102.075 102.07 5 606 644 105.00 8 9.040 319.448 (111.115) 208.333

Surplus of revenues over expenses 15.453 - - 6 77 4 - 16.233 - 16.233

Notes to the financial statements on pages 6 to 18 are part of the financial statements MUNICIPALITY OF VELES

BALANCE SHEET As of 31 December 2007 (In thousands of MKD) Budget Regular Donation Grant Designated Designated Total NOTE account account account account account account (78520) (78516) (930) (937) ASSETS CURRENT ASSETS Cash 9 15.453 - - 6 774 - 16.233 Accounts receivable 10 15.397 106 - - - - 15.503 Prepayment and Accrued income 11 820 2.869 34 - - 689 4.412 Total current assets 31.670 2.974 34 6 774 689 36.14 8

NON-CURRENT ASSETS Property, plant and equipment - 207.522 - - - - 207.522 Intangibles - 324 - - - - 324 Investments in progress - 78.729 - - - - 78.729 Total non-current assets 12 - 286.57 5 - - - - 286.57 5

TOTAL ASSETS 31.670 289.5 50 34 6 774 689 322.72 3

LIABILITIES AND

OPERATING FUND CURRENT LIABILITIES Accounts payable 13 820 1.57 2 34 - - - 2.42 6 Other short term liabilities 14 - 1.297 - - - 689 1.986 Accrued expenses and deferred 15 15.397 78.835 - - - - 94.231 income Total current liabilities 16.217 81.70 4 34 - - 689 98.64 4

OPERATING FUND AND SURPLUS OF REVENUES OVER EXPENSES Operating Fund - 207.84 6 - - - - 207.845 Total operating fund - 207.84 6 - - - - 207.845 Current surplus of revenues over expenses deferred for future 15.453 - - 6 774 - 16.233 periods TOTAL LIABILITIES AND 31.669 289.549 34 6 774 689 322.722 OPERATING FUND

Notes to the financial statements on pages 6 to 18 are part of the financial statements

The accompanying financial statements were authorized for issue by the management of Municipality of Veles and were signed on its behalf by:

Ace Kocevski Mayor

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STATEMENT OF CHANGES IN THE OPERATING FUND For 2007

(In thousands of MKD)

Operating fund Fixed assets

Balance at 01.01.2007 189.252

Purchased fixed assets 34.360

Fixed assets write-off (622)

Depreciation (15.144)

Balance at 31.12.2007 207.846

Notes to the financial statements on pages 6 to 18 are part of the financial statements

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NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. GENERAL INFORMATION

The MUNICIPALITY OF VELES is a unit of local self-government where its citizens exercise the right of local self-government by direct engagement in the decision making process. The region of the municipality of Veles is defined by the Law of territorial organization of the units of local self-government of the Republic of Macedonia. The municipality of Veles is situated at No. 1 “Panko Brasnar” street, Veles. Authorized representative of the municipality of Veles is the mayor Ace Kocevski. The Municipality of Veles with an area of 427,45 km 2 and population of 55.108, is comprised of the following: populated areas city of Veles and the villages: Basino selo, Belestevica, , Vetersko, Gorno Kalaslari, Gorno Orizari, Dolno Kalaslari, Dolno Orizari, , Karabuniste, Krusje, Kumarino, Lugunci, Mamutcevo, Novacani, Novo Selo, Oraovec, Otovica, Rastani, Rlevci, Rudnik, Slp, Slivnik, Sujaklari, Sopot, Crkvino,Colosevo and Cidimirci. The Municipality of Veles is a legal entity and performs its activities through its Governing bodies directly elected by the people. The Governing bodies are the Council and Mayor which are elected for a period of four years. The Council of the Municipality of Veles has 23 members, elected on the local elections in 2005 with a 4 year mandate. Their jurisdiction is determined by the Statute of the Municipality of Veles. The Mayor of Veles was elected on the local elections in 2005 and his jurisdiction is determined by the Statute of the Municipality of Veles. The primary act of the Municipality is the Statute No. 0701-2280/1 from 15.06.2006, which regulates the basic issues related to the jurisdiction and organization of the Municipality and other significant issues. The Statute is brought by majority of votes of all members of the Council. According to The Law of local self-government and the Statute of the Municipality of Veles, the Municipality of Veles carries out public works with local significance. The sources of funding for the municipality are provided in accordance to the Law for finacing the units of local self-government, from: • Local taxes determined by law (property tax, sales tax of real estate and rights, inheritance and gift tax, other local taxes determined by law); • Local fees (public utility fee, administrative fee and other local fees defined by law); • Local charges (Charges for construction land development, charges from communal activities, charges for physical and urban plans, and other local charges determined by law); • Revenues from ownership (revenues from lease; revenues from interests; and revenues from property sales); • Revenues from donations; • Revenues from fines determined by law; • Revenues from self-contributions and • Other revenues determined by law . The annual account of the Municipality of Veles is adopted by the Council of the Municipality of Veles.

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The following annual accounts, for which the authorized representative is the mayor, are prepared by the Municipality of Veles: • Budget account of the municipality of Veles; • Regular account of Municipality Veles; • Designated account (930) of Municipality Veles; • Designated account (937) of Municipality Veles; • Donations account (78520); and • Donations (grant) account (78516).

NOTE 2. BASIS FOR PREPARATION AND PRESENTATION OF FINANCIAL STATEMENTS

The financial statements of the Municipality are conducted in accordance with the Budgets and Budget users Accounting Law, the generally accepted accounting principles and practice, and accounting standards for presentation of the balance sheet items, balances of the assets, liabilities, sources of the assets, revenues and expenses, and the operating results on true, fair, confidential, complete, punctual basis. The accounting standards in use in the Republic of Macedonia are the International Accounting Standards for the public sector on cash basis, determined by the International Accounting Standards Board (IASB). The amounts in the statements and in the notes are stated in thousands of MKD, except when otherwise indicated in the text.

NOTE 3. BASIC ACCOUNTING POLICIES

The basic accounting policies used for preparation of the financial statements are listed in the following text. The accounting policies are being adequately applied from year to year.

3.1. Basic principles

3.1.1. Budget The preparation of the municipality’s budget is made on basis of the strategic priorities of the Government, the fiscal strategy, the proposals for strategic plans of budget users and budget policy and the municipality priorities. The municipality acts according to the budget circular which contains the basic macroeconomic indicators, the main directions for conducting the municipality’s budget, donations for the municipalities that will be transferred from the Budget of the Republic of Macedonia, from the budgets of the funds, revenues from other sources, including the form and contents of the municipalities budgets. The timeframe for planning the municipality budget is determined by a budget calendar conveyed by the municipality. Based on the determined timeframe, the Council of the municipality and the mayor give the main directions to the municipality’s budget users for preparation of the financial statements. The Council of the Municipality should bring the Budget for the next year not later than the 31 th of December in the current year.

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3.1.2. Regular account

The rights of the users for spending funds from the Budget stop on December 31 th . Any unpaid liabilities from the fiscal year will be approved and anticipated in the Budget for the following year.

All revenues of users of the local self-government and their unit-users are stated in their own budgets. Liabilities and expenses are made in accordance with the regulations and within estimated budget limits. Users/unit users which create revenues from additional activities, prepare a financial plan according to the Budget Law. Revenues from self-financing activities might be used in the amount and purpose as declared in the financial plan.

3.1.3. Designated accounts Grants from the Budget of the Republic of Macedonia and budgets of the Funds are additional revenues for the municipality used for financing its obligation and authority, determined by law. From the Budget of the Republic of Macedonia and budgets of the Funds the following type of grants are transferred: - Revenues from VAT; - Earmarked grants; - Capital grants; - Block grants; and - Grants for delegated competence. The type, amount and distribution of grants to the municipalities are a component to the Budget of the Republic of Macedonia and budgets of the Funds. The line ministries and the Funds, publish the criteria, procedures and deadlines not later than April 30 th in the current year, for the allocation of earmarked and capital grants. Earmarked grants are used for the financing of specific activities. The line ministries and the funds give proposals to the ministry of finance for allocation of earmarked grants by municipalities, by projects and by institution. The line ministries and the funds monitor the usage of earmarked grants. If some irregularity in usage of the grant is noted, the authorized ministries and the funds stop the future remuneration of funds and report to the ministry of finance. Grants from the Budget of the Republic of Macedonia and budgets of the Funds are transferred according to the treasury working principles.

3.1.4. Donations account The Municipality might utilize donations from different contributors. Donations in cash represent revenues for the municipality and are recorded in the accounting books of the municipality. The purpose and usage of donations are regulated with a contract between the contributor and the municipality, represented by the mayor and with previous consent by the Council of the municipality. If the Municipality is a user of a donation, its activities are regulated by the Law for

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Donations and Sponsorships in the public sector. 3.2. Establishing incomes and expenses According to the Law for financing the units of local self-goverment the Budget of the Municipality, should contain: General part : • Consolidated Balance Sheet; • Functional classification of expenses; • Balance of currently-operational revenues and expenses; • Balance of capital expenses. Special part: • Presenting expenses according to the Manual for expenses classification by users and programs; • Annexes (financial plans – balance of revenues and expenses of the public services founded by the Municipality, which fully or partially are financed by the Municipality’s Budget and; • Explanation of the Budget. The amount of expenses determined with the annual budget document, is considered to be the maximum amount and no commitments above this amount can be undertaken. A special budget document (rebalance) is brought by the Municipality’s Council, for every expense that requires new source of funding, together with the suggested source; and if the planned revenues are not achieved for more than 5%. For covering unforeseen expenses which will appear during the budget year, the Municipality’s Council makes a decision for setting aside budget reserves (current and non- current) to the amount of 3% of the total current expenses. Current reserves are used for the needs and tasks of Budget users, for which funds are not reserved, or not reserved in amount that is enough.

Recognition of revenues and expenses The recognition of revenues and other incomes, in the statement of revenues and expenses is made on cash basis in the period of their appearance and they are collected until the 31 st of December in the current fiscal year, according to the criteria of measurement and disposal. Expenses in the statement of revenues and expenses are recognized on a cash basis, during the accounting period to the amount in which the payment is performed.

Limitations Budget and unit users must use funds from the Budget according to their approved purpose and must not undertake commitments above the approved limits. The amount of revenues, stated in the annual budget document, are not strictly determined and limited. The amount of expenses, determined in the annual budget document, is considered as maximal amounts and no commitments above this amount can be undertaken. The approved expenses cannot be re-distributed among the users. The re-distribution of the assigned funds to expense items in the budget of one user can be conducted with previous consent of the Council of the local self-governing unit, but in frames of the total determined limit of the revenues in the Budget.

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The assigned amounts in the user’s Budget can be re-distributed among the expense categories, with the exception of the expense items: salaries, allowances and other expenses; and payments of loans for interest and principal. Each budget user must have special bookkeeping for the budget’s funds and for other revenues, according to the double-entry system and according to the disposition of the accounts in the accounting plan of the budget user. Budget user’s rights to spend funds of the Budget expire on 31 of December, in the current fiscal year. The approved budget for the budget users is due until the end of the fiscal year. The budget that is not used until the end of the year is not transferred in the next fiscal year. Revenues collected after 31 of December, are recorded on the budget’s account as revenues for the next fiscal year. Revenues that are realized by the users and the unit-users, by doing activities that are not financed from the budget, are paid on separate accounts for donations, loans, grants and self- contributed activities, whose approval is determined by separate budgets that are included in the Municipality’s Budget. The decrease or increase of planed revenues and other inflows in the plan of approved funds in the budget accounts for donations, loans, grants and self-contributed activities is approved by the Council of the Municipality by previously submitted request by the budget user to the mayor who follows up the request to the Council.

Financial result Budget surplus, represents a difference of revenues over expenses, when revenues in the budget are greater than expenses. The determined surplus is transferred to the Budget for next year and is registered on the revenues’ account.

3.3. Determining the balance of the balance sheet positions

Cash and cash equivalents Cash and cash equivalents comprises the cash on hand and the cash on gyro account. Money at the cash account and at the bank accounts stated in domestic currency are presented in the general ledger at their nominal value, while the foreign exchange currency is stated according to the exchange rate of NBRM at the reporting date.

Accounts receivable Accounts receivables are recognized according to a valid contract at their agreed upon amounts. In accordance to the cash basis principle, when recording a new entry to the accounts receivables, at the same time the entry is recorded to the other differed income account and vice versa when a payment is registered an adequate decrease in both accounts is recorded.

Prepayment and Accrued income Prepayment and accrued income are registered on a calculative basis. It includes: prepaid expenses for a period not longer than 12 months; expenses for investment maintenance of assets; expenses for long-term rent; matured, but not paid salaries, current transfers,

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payment of interest and purchase of capital assets. Prepayment and accrued income are used in the case of: recording an invoice from suppliers on grounds of purchase of materials, spare parts, small inventories, goods or rendered services; salaries, allowances and other kinds of calculated liabilities; advances; short-term or long-term loans.

Tangible and intangible assets Tangible and intangible assets are stated at cost. The cost of the fixed assets comprise the purchasing price increased for the import customs, VAT, manipulative expenses and all other expenses that can be added to the cost, i.e. to the purchasing expenses. The operating fund increases for the amount of the purchased fixed assets. According to the accounting policy concerning fixed assets, they are all recognized as expenses for the period they are purchased.

Depreciation Intangible assets and tangible (fixed assets) are depreciated using the straight-line method, by using the official depreciation rates prescribed for budget users/unit-users, so their cost and revaluation are depreciated in equal annual amounts during the estimated utilization period of the fixed assets. The depreciation base is corrected for consecutive expenses that improve the condition of the assets, above its utilization period and extend the capacity and functional ability of the assets (investments for reconstruction, adaptation or other investments). The base for depreciation of the tangible and the intangible assets, received as a grant is the estimated purchase value. Tangible assets start to depreciate from the first day of the following month, since the start of their usage. Intangible assets start to depreciate from the first day of the following month, since the moment when they are ready to be used. The amount of the current depreciation is recorded on burden of the operating fund. The applied rates of depreciation are: 1% for buildings, 1-3% for streets and roads, and 10- 25% for equipment. The calculation of the depreciation is performed separately for each item, and not for groups of assets. Once a tangible or intangible asset is written off, it cannot be a subject of re-evaluation, despite the fact that is still in use. The obligation for depreciation does not apply for the following tangible and intangible assets: land and forest, buildings and objects-monuments of culture, historic monuments; art, sculpture works; film and other art (except in case these objects are used for activity from which revenues are made), books in libraries; roads with local significance, with earth surface, and also their constituent parts; assets that are permanently out of use; and assets which use is not time limited.

Inventory Small inventories are comprised by long-term assets with purchasing cost no greater than EUR 300 in denar denomination. The small inventories are completely written off at the moment of purchase.

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Short-term liabilities Short-term liabilities are recognized according to a valid contract at their agreed upon amounts. According to the cash basis principle, when recording a new entry to the short-term liabilities, at the same time the entry is recorded to the other prepayment and accrued income account and vice versa when a payment is registered an adequate decrease in both accounts is recorded.

Accrued expenses and deferred income The accrued expenses and deferred income, according to the cash basis principle for recognition of revenues, present the accounts receivables on a calculative basis. Differed incomes are transferred on burden of the revenues when the accounts receivable are being collected.

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NOTE 4. TAX REVENUES

(In thousands of MKD)

Budget account Total

Personal and company income tax 4.469 4.469 Property tax 30.192 30.192 Charges for construction land development 11.082 11.082 Charges from communal activity 13.520 13.520 Other local charges 11.732 11.732

Total 70.995 70.995

NOTE 5. NON-TAX REVENUES

(In thousands of MKD)

Budget account Total

Fees for licenses and use 426 426 Fees and charges 765 765 Rent 792 792 Other government services 227 227 Other non-tax revenues 1.926 1.926

Total 4.136 4.136

NOTE 6. CAPITAL REVENUES

(In thousands of MKD)

Budget account Total

Sale of property 739 739 Sale of land and intangible assets 364 364

Total 1.103 1.103

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NOTE 7. TRANSFERS AND DONATIONS

(In thousands of MKD)

Budget Regular Donation Grant Designated Designated Total Elimination Consolidated account account account account account account (78520) (78516) (930) (937) Current transfers from other authorities 17.052 102.075 - - - - 119.128 (102.075) 17.053 Surplus of revenue over expenses from 3.093 - - - 1.270 - 4.363 - 4.363 previous year Revenues from VAT 21.149 - - - - - 21.149 - 21.149 Earmarked grants - culture - - - - 981 - 981 - 981 Earmarked grants - education - - - - 21.451 - 21.451 - 21.451 Earmarked grants - social protection - - - - 3.640 - 3.640 - 3.640 Earmarked grants - fire department - - - - 9.040 - 9.040 (9.040) - Block grants - - - - 69.400 - 69.400 - 69.400 Transfers from other level of 41.294 102.075 - - 105.782 - 249.151 (111.115) 138.036 authorities

Other transfers - - - - - 9.040 9.040 - 9.040 Donation - - 606 650 - - 1.256 - 1.256

Total 41.294 102.075 606 650 105.782 9.040 259.447 (111.115) 148.332

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NOTE 8. EXPENSES

(In thousands of MKD) Budget Regular Donation Grant Desi- Desi- Total Elimi- Consoli- account account account account gnated gnated nation dated (78520) (78516) account account (930) (937) Salaries 8.718 8.718 - - 37.225 4.799 59.459 (13.517) 45.943 Allowances 3.703 3.703 - - 7.187 745 15.338 (4.448) 10.890 Personal income tax 1.894 1.894 - - 3.927 530 8.246 (2424) 5.821 Contributions 4.681 4.681 - - 20.894 2.966 33.223 (7.647) 25.575 Expenses for employees 18.996 18.996 - - 69.233 9.040 116.265 (28.036) 88.229

Travel expenses 689 689 - 3 45 - 1.426 (689) 737 Communal services 13.043 13.043 119 - 25.857 - 52.061 (13.043) 39.018 Small inventories 2.932 2.932 - - 1.265 - 7.128 (2.932) 4.197 Maintenance 15.258 15.258 - - 1.006 - 31.523 (15.258) 16.264 Contract services 8.691 8.691 147 439 6.949 - 24.918 (8.691) 16.227 Other current expenses 4.188 4.188 - 9 379 - 8.763 (4.188) 4.575 Operating expenses 44.801 44.801 266 451 35.501 - 125.820 (44.801) 81.019

Current reserves 355 355 - - - - 710 (355) 355 Reserves 355 355 - - - - 710 (355) 355

Transfers - NGO 348 348 - - - - 696 (348) 348 Other transfers 3.210 3.210 340 - - - 6.760 (3.210) 3.550 Social transfers 3.558 3.558 340 - - - 7.456 3.558) 3.898

Furniture and office equipment 4.537 4.537 - 193 274 - 9.540 (4.537) 5.003 Construction and renovation 29.810 29.810 - - - - 59.620 (29.810) 29.810 Other non-financial assets 18 18 - - - - 37 (18) 18 Capital expenses 34.365 34.365 - 193 274 - 69.197 (34.365) 34.832

Total expenses 102.075 102.075 606 644 105.008 9.040 319.448 (111.115) 208.333

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NOTE 9. CASH

(In thousands of MKD) Grant Designated Budget account account Total account (78516) (930) Gyro account 15.453 6 774 16.233

Total 15.453 6 774 16.233

NOTE 10. ACCOUNTS RECEIVABLE

(In thousands of MKD)

Budget Regular Total account account

Receivables from property tax 3.076 - 3.076 Receivables from charges for construction land 2.609 - 2.609 development Receivables from charges for setting up a firm 8.993 - 8.993 Other receivables 681 6 687 Other receivables from employees 38 100 138 Bad and doubtful receivables 1.687 - 1.687 Total receivables 17.084 106 17.190

Valuation allowance (1.687) - (1.687)

Total 15.397 106 15.503

NOTE 11. PREPAYMENT AND ACCRUED INCOME

(In thousands of MKD) Desi- Donation Budget Regular gnated account Total account account account (78520) (930) Other Prepayment And Accrued Income 820 2.869 34 689 4.412

Total 820 2.869 34 689 4.412

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NOTE 12. NON-CURRENT ASSETS

(In thousands of MKD)

Investments Buildings Equipment Intangibles Total in progress

Cost

Balance at 01.01.2007 227.630 31.515 - 60.823 319.967

Additions in the year 490 3.321 324 25.049 29.184 Transfer from investments in - (7.142) 7.142 - - progress Appraised assets 19.179 3.904 - - 23.083 Sale - (1.813) - - (1.814) Write-off - (469) - - (469)

Balance at 31.12.2007 254.441 36.458 324 78.729 369.952

Valuation allowance Balance at 01.01.2007 57.315 12.578 - - 69.894 Current depreciation 10.910 4.234 - - 15.144 Decrease in valuation allowance - (1.661) - - (1.661)

Balance at 31.12.2007 68.225 15.152 - - 83.377

Carrying value at 31.12.2007 186.216 21.306 324 78.729 286.575

Carrying value at 31.12.2006 170.315 18.937 - 60.823 250.075

NOTE 13. ACCOUNTS PAYABLE

(In thousands of MKD) Donation Budget Regular account Total account account (78520) Domestic accounts payable - 1.572 34 1.606 Advances 820 - - 820

Total 820 1.572 34 2.426

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NOTE 14. OTHER SHORT TERM LIABILITIES

(In thousands of MKD) Regular Designated Total account account (937) Salaries 789 400 1.189 Personal income tax on salaries and allowances 71 36 107 Contributions on salaries 425 247 672 Liabilities for salary deductions 12 6 18 Total 1.297 689 1.986

NOTE 15. ACCRUED EXPENSES AND DEFERRED INCOME

(In thousands of MKD) Budget Regular Total account account Other Accrued Expenses And Deferred Income 15.397 78.835 94.231

Total 15.397 78.835 94.231

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