The audit covered the financial statements prepared in accordance with International Public Sector Accounting Standards (IPSAS) within the framework of the project (phases 2 and 3), their reliability and efficient use of funds.

For reference: IPSAS are internationally recognized standards that ensure the accountability of public funds, transparent and consistent reporting. They confirm the reliability and impartiality of information in reports, the targeted use of budget funds and the targeted distribution of funds allocated by funding organizations.

During the audit, the COA auditors performed the following activities:

- verified the targeted, effective and consistent spending of funds allocated under the ADB loan agreement and the contribution of the Government of the Republic of Uzbekistan.

- conducted a full analysis of the movement of advance and operational bank accounts, direct payments.

- collected reports prepared on the basis of national accounting standards (NAS) and assessed their compliance with the requirements of international standards. The COA auditors also audited the financial statements prepared on the basis of International Public Sector Financial Reporting Standards (IPSAS).

- verified the terms of the concluded contracts and compliance with the established deadlines.

- analyzed tender bids, the composition of participating organizations, conflicts of interest, procurement documentation and compliance with ADB rules.

- analyzed the selection of Project Office staff, appointment to positions, qualification requirements, hiring procedures, distribution of responsibilities and salary calculation.

- verified the accuracy and reliability of information in the reports submitted by the Project Office to ADB and government agencies.

Based on the audit results, in order to improve the project efficiency, the project managers and ADB were presented with proposals to eliminate conflicts of interest, re-evaluate costs, improve the efficiency of the project management and internal control system, strengthen personnel management, as well as generate reports in accordance with IPSAS requirements and improve the qualifications of personnel.

During the audit, the ADB and COA established close cooperation and constructive dialogue. The Parties highly appreciated the joint efforts to ensure the targeted use of public funds and accountability and agreed to expand cooperation in future joint projects.

The COA will continue to work consistently to further develop the practice of public audit in line with international standards and ensure accountability and efficiency in the use of public funds.