Mass Privatization in Russia
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INTERNATIONAL FINANCE CORPORATION FINAL FINANCIAL AND OPERATIONAL REPORT USAID Grant CCN-0005-G-00-3036-00 Mass Privatization Program October 1994 MASS PRIVATIZATION IN RUSSIA International Finance Corporation Final Financial Report October 1994 I TABLE OF CONTENTS Statement of Cash Receipts, Disbursements and Grant Balance 1 Financial Report ............................ 2 Equipment Inventory ......................... 5 International Finance Corporation USAID Grant #CCN-0005-G-00-3036-00 Mass Privatization Program Grant Period 15 January 1993 - 15 July 1994 Statement of Cash Receipts, Disbursements and Grant Balance (Expressed in US dollars) Receipts Contributions 1,625,000.00 1,625,000.00 Interest income 58,641.15 Total receipts 3,308,641.15 Disbursements Project disbursements 3,220,794.58 Excess of receipts 87,846.57 Grant balance consists of: Cash 29,205.42 Interest 58,641.15 Total balance 87.846.57 FINANCIAL REPORT GRANT #CCN-0005-G-00-3036-00 MASS PRIVATIZATION PROGRAM 1. Total amount: US$3,250,000 Starting date: 01.15.93 Expiration date: 07.15.94 2. The grant was disbursed to IFC in two sums: US$1,625,000 (receipt on 03.25.93) US$1,625,000 (receipt on 07.19.93) 3. The final breakdown of the project costs is the following: Expense Category Expensed US$ 1. Consultant salaries 506,394.38 2. Relocation, monthly housing and 128,500.00 transport allowance 3. Consultant travel 245,159.51 4. Staff travel 335,060.72 5. Consulting companies 1,516,017.74 6. Moscow central 306,809.88 7. Washington coordination 172,131.95 8. Consultants' insurance 10,720.40 TOTAL EXPENSES 3,220,794.58 BALANCE 29,205.42 4. Here follows a brief explanation of the expense categories. a. Consultant salaries include salaries of 17 consultants (both long- and short-term, all US nationals) having worked on the project in the course of a year and a half. b. Relocation, housing and transport allowances were paid to long-term consultants living in Russia. The allowances were calculated taking COLA adjustments and security issues into consideration. c. Consultant travel includes long- and short-term consultant travel expenses as well as local operating costs such as translation services, local staff salaries, business communications. d. Staff travel includes the travel expenses of IFC Europe Department investment officers who worked on the project - Stephanie von Friedeburg (Rawlings) and Victor Paul, as well as one trip of Europe Department staff member Andrew Staples and travel expenses of 7 other IFC staff members from the legal, corporate relations and engineering departments assisting in the implementation of the project. Travel expenses of Stephanie von Friedeburg and Victor Paul include local operating costs such as the purchase of computer equipment (see attached Equipment Inventory), translation services, local staff salaries, apartment rental, business communications, local staff travel and salaries. These costs were accumulated in the staff travel category because of internal IFC accounting system constraints concerning cash transactions in Russia. e. Consulting companies contracted to work on the project are the following: Company Area Paid Burson-Marstellar public relations $576,838.82 Deloitte & Touche voucher auction $903,420.69 Steptoe & Johnson legal $35,758.23 f. Moscow central office was set up in the course of project implementation. Moscow central office staff supported project implementation. Expenses incurred include local staff travel, local legal companies, local travel, equipment and other operating expenses. g. Washington coordination aspect includes support for post-privatization (1 US national) as well as consultants working on the project in Washington (1 Russian, 1 US national). It also includes equipment bought through Washington and sent to the field (Volgograd, Tomsk, Nizhny Novgorod, Yakutsk) and was transferred, together with the equipment bought locally, to local authorities when the work was finished. (See attached Equipment Inventory.) h. Consultants' Insurance consists of the health insurance contributions for long-term consultants. The staff members directly involved in the project made a contribution of 181 staff-weeks which is the equivalent to $1,808,000. Name Days Contribution $ Goldberg 23 46,000 Chib 15 30,000 Staples 58 116,000 Puri 25 50,000 Sullivan 5 10,000 Kasrai 16 32,000 Jones 17 34,000 Morgenstern 95 190,000 von Friedeburg 220 440,000 Paul 299 598,000 Doran 131 262,000 TOT\L 904 days 1,808,000 (181 staff weeks) In addition to the above, there were other IFC staff members taking part in the development of the program in the course of meetings, consultations and discussions. The work of IFC Europe Department support staff was also invaluable. The use of telephone, fax, mail services and other facilities are not included in the above figure and add significantly to the IFC contribution. A detailed breakdown of expenses is available. The account where the US$3,250,000 was managed, was audited in November 1993 by Price Waterhouse and is being audited now by the same company according to the World Bank internal auditing procedures. In addition, Earnst & Young was retained at IFC's expense to analyze various aspects of the USAJD grant financial management. Results of the audits are available upon request. Equipment Inventory Volgograd Inventory Item of Equipment Stock Number Project TR Number Date of Purchase Current Number Purchase Price Location I AT 386 Personal G/H 720500902 Large-Scale/ See attached invoice 02/04/93 $2,250 Property Fund, Computer Volgograd and also see SOE in Volgograd Washington 2 AT 386 Personal G/H 720303576 Large-Scale/ See attached invoice 02/04/93 $2,250 Property Fund, Computer Volgograd and also see SOE in Volgograd Washington 3 AT 386 Personal G/H 720304554 Large-Scale/ See attached invoice 02/04/93 $2,250 Property Fund, Computer Volgograd and also see SOE hi Volgograd Washington 4 Matrix Printer 12167587 Large-Scale/ See attached invoice 02/04/93 $300 Property Fund, Hyundai HDP-920 Volgograd and also see SOE hi Volgograd Washington 5 Matrix Printer 12167593 Large-Scale/ See attached invoice 02/04/93 $300 Property Fund, Hyundai HDP-920 Volgograd and also see SOE hi Volgograd Washington 6 Electronic Voucher 0252 & 0330 Large-Scale/ Directly charged to 04/22/93 400,000 Rbl Property Fund, Counters MFC-003 Volgograd Trust Fund, purchased $1 = 807 Rbl Volgograd (2 items) by Field Office $495 7 Magnetic securer 108, 607, 604, Large-Scale/ Directly charged to 03/26/93 177,000 Rbl Property Fund, detector V1LDIC 558, 74 Volgograd Trust Fund, purchase d $1 = 735 Rbl Volgograd (5 items) by Field Office $240 8 Laser Printer IBM 56-60186 Large-Scale/ Directly charged to 03/24/93 $2,150 Property Fund, 4029-010 Volgograd Trust Fund, purchased Volgograd by Field Office 9 Back-UPS 600 920836059, Large-Scale/ Directly charged to $251x3 Property Fund, (3 items/ 920838690, Volgograd Trust Fund, purchased Volgograd 920849785 in Washington 10 IBM PC/2's Personal W920854274 Large-Scale/ Directly charged to $2,288 Property Computer Volgograd Trust Fund, purchased Committee, in Washington Volgograd including Monitor 72-000157 IBM 85 12-004 11 IBM PC/ i^Personal VB55-011YVIB Large-Scale/ Directly charged to 07/10/92 $1,800 Property Computer Volgograd Trust Fund, purchased Committee, by Field Office Volgograd including Monitor 55-70006 IBM 12 HP LaserJet III 3220J07722 Large-Scale/ Directly charged to $1,908 Property Volgograd Trust Fund, purchased Committee, in Washington Volgograd Nizhny Novgorod Inventory Item of Equipment Stock Number Project TR Number Date of Purchase Current Location Number Purchase Price 1 AT 386 Personal Large-Scale/ See attached invoice 02/04/93 $2,250 Property Fund, Computer Nizhny and also see SOE in Nizhny Novgorod Novgorod Washington 2 AT 386 Personal Large-Scale/ See attached invoice 02/04/93 $2,250 Property Fund, Computer Nizhny and also see SOE in Nizhny Novgorod Novgorod Washington 3 Computer PC AT 386SX Large-Scale/ Directly charged to 03/11/93 $2,500 Property Fund, Nizhny Trust Fund, purchased Nizhny Novgorod Novgorod by Field Office 4 Printer IBM 4021090 56-60189 Large-Scale/ Directly charged to 03/11/93 $2,150 Property Fund, Nizhny Trust Fund, purchased Nizhny Novgorod Novgorod by Field Office 5 Computer PC AT Large-Scale/ BrowneU, N80739, 09/27/93 $550 Property 286/287 Nizhny CaseyT00094 Committee, Novgorod Nizhny Novgorod 6 Computer PC AT Large-Scale/ BrowneU, N80739, 09/27/93 $550 Property 286/287 Nizhny CaseyT00094 Committee, Novgorod Nizhny Novgorod 7 Fax Canon 2 70S Large-Scale/ Directly charged to 02/04/93 $1,260 Property Nizhny Trust Fund, purchased Committee, Novgorod by Field Office Nizhny Novgorod Yakutsk Inventory Item of Equipment Stock Number Project TR Number Date of Purchase Current Location Number Purchase Price 1 MSC, 286 Personal 9310123 Large-Scale/ Easter, 20674 07/09/93 $864 Property Fund, Computer Yakutsk Yakutsk 9228301011 including Wang VGA Color Monitor 2 MSC 386 Personal 4275032493023 Large-Scale/ Easter, 20674 07/09/93 $1,340 Property Fund, Computer Yakutsk Yakutsk MBWHE2 10304 including Hyundai 203 Super Color Monitor 3 AT 286 Personal Large-Scale/ Dietrich, 17526 07/21/93 $2,680 Property Fund, Computer Yakutsk Yakutsk 4 AT 286 ^rsonal Large-Scale/ Property Fund, Compu' Yakutsk Yakutsk 5 Smart Link Modems Large-Scale/ Property Fund, (2 items) Yakutsk Yakutsk 6 VGA Color Monitors Large-Scale/ Property Fund, (2 items) Yakutsk Yakutsk 7 Smart One Modems 3151445, Large-Scale/ Easter, 20674 07/09/93 $188 Property Fund, (2 items) 3150941 Yakutsk