Dear Nino,

We had reviewed the second withdrawal application package request you send on November 27, 2020.

We have the following comments and clarification questions :

• On the expenditure reimbursement form:

• Under the eligible expenditure, please refer to “Component 2 (a) Providing financial assistance, in addition to the expansion of the assistance provided by the Targeted Social Assistance Program to additional poor and vulnerable households” . Then please elaborate in writing what specific expenditures paid are claimed for reimbursement.
• done, updated reimbursement form is attached to the email.
• The definition of eligible expenditures as is now is not correct and not compliant with the agreed POM.  The first type of eligible expenditure should include “families registered in the database with a rating score lower than 100001 and who have 3 or more children from 0 to 16 years old”, not “Families with a rating score of 100001 registered in the database, who have 3 or more children from 0 to 16 years old”.  In this regard, please note that the agreed POM defines this type of eligible expenditure as for “"Household with social rating score from 65 000 up to 100,001 having three or more children aged 16 and below". It should be the corrected: "Household with social rating score below 100,001 having three or more children aged 16 and below''. Please revise the POM as requested per attached email dated October 12, 2020 and kindly re-submit.
• comment is taken into consideration and revised POM will be submitted to you shortly.
• It has to be noted that the regular TSA benefits are also eligible under this expenditure category , though were not claimed under the submitted application.
• we will revert to this issue shortly.
• The amounts reimbursed for the vulnerable families (with score between 65, 000 and 100,000 , labeled as *** in the table) are not consistent with the eligible amounts as per agreed POM. As per POM (pg 16)  amounts per family should be  the following: GEL 70, 90, 105, 140, 175 depending on number of family members (1,2,3,4,5 respectively) . Please clarify whether the amounts in the table also include child allowances (which are not temporary) or what is the benefit structure .
• the amounts to be reimbursed for the vulnerable families are calculated on automatic basis based on data available in the system. The calculation formula was verified for beneficiaries selected by us on a random basis. In order to response to your clarification request, we have asked SSA to send us extract from data base and prepare the separate report, in which total number of family members as well as total number of kids  are provided. Please find attached disclosure report.    
• Please do send the table in excel, so that we can more easily reconcile and check numbers. (Excel version of the report is attached).

• Payment orders for each beneficiary ( in Georgian). The quality of scan is very low, it is not possible for us to read and reconcile them directly with the detailed list of beneficiaries.
• Unfortunately, the payment orders provided by Liberty Bank were poor quality, however the information needed for reconciliation purposes can be identified in these copies. The reconciliation was done based on ID number of the beneficiary (For your easy reference we have prepared the reconciliation report, which is attached to the email.) The translated PO-s are attached  as well.
• Regarding the report regarding May 2020 benefits from SSA (excel file)

• The number of random checks done by the PIU is 10.  In the POM you have indicated a sample of 20 beneficiaries to be checked per each reimbursement submission.  Grateful if you could lease increase the checks for the next submission given the high number of beneficiaries.
• Noted. The number of randomly selected beneficiaries increased.
• Only 4 out of 10 beneficiaries immediately confirmed, this is also very low. On the remaining 6 PIU requested additional information. Have you reconfirmed receipt of fund through the Liberty Bank?
• Yes, the copies of Payment Orders attached to the application were provided by Liberty Bank.

• We note the payment order from the Treasury (in Georgian), confirming the transfer of funds (GEL 10,196,775) from State Budget to Liberty Bank for further transfer to beneficiaries.
• The Payment order confirm the transfer of the total amount of the compensation to the transit account opened in Liberty Bank.
• We note the general letter from SSA to the PIU, confirming the payment of 10,196,775 in GEL for socially vulnerable groups.
• Yes

Looking forward to hearing from you,

Maddalena

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