RepÜrting on EConomy, EfViiency F ectiveness in the use of PubiC ResCurus AIN: SCID-2021-11 FINANCIAL AUDIT REPORT OF THE WORLD BANK FUNDED "COVID-19 EMERGENCY RESPONSE AND HEALTH SYSTEMS PREPAREDNESS PROJECT" MINISTRY OF HEALTH (MOH), THIMPH U PERIOD: 01/07/2020 TO 30/06/2021 NOVEMBER 2021 (v inkiinaigý m,s1 qn, nie l r pnýiej nlinsj an un p u o f rsm sü mu SI el iln ii ärYJ fli a yasty tke X 'n kfnettvear ,Namgy), agii ROYAL AUDIT AUTHORITY 3iutan Integrity ouse RAA Reporting on Economy, Effci ncy 8 EffectiveEss in the use of Public Resources RAA/SCID/MoH(WH)/05/2021-2022/2103 Dated. 17' November 2021 The Director Department of Microeconomic Affairs Ministry of Finance Tashichbo Dzong, Tbhimphl Subject: Financial Audit Report of the World Bank funded "Covid-19 Emergency Response and Health Systems Preparedness Project,", implemented by the Policy and Planning Division, Ministry of Health, Thimphu for the period JptJuly 2020 ito 30"' June 2021 Sir, Enclosed herewith, please find three sets of the audited financial statements and auditors' report thereon in respect of the World Bank funded "Covid-19 Emergency Response and Health Systems Preparedness Project", implemented by the Policy and Planning Division (PPD), Mol, Thinphu for the financial year ended 30' June 2021. The audit was conducted as required under the Audit Act of Bhutan 2018, and in accordance with International Standards of Supreme Audit Institutions (ISSAls). Two sets of the audited financial statements and auditor's report may please be forwarded to IDA Head Office, N.W, Washington, C.20433, USA. Auditor's Report on the Financial Statement As may be noted from the Auditors' Report, the financial statements are prepared by the Covid- 19 Emergency Response and I Health Systems Preparedness Project Management Unit, PPD, MolH1, in all material respects, in accordance with Financial Rules and Regulations 2016 and Project Agreement. Accordingly, the RAA has expressed unmodified (unqualified) opinion on the financial statements. Audit Findings and Recommendations The auditors' review of the accounting records, internal controls and operations of the Covid- 19 Emergency Response and I Iealth Systems Preparedness Project revealed some deficiencies and lapses. However, one audit finding isstied was settled in view of recoveries made, justifications provided, related documents and evidences furnished subsequently which are transmitted separately to the Project Management Unit, PPD, in the form of Management Appraisal Report (MAR) for future reference and compliance. Achievements The RAA has noted achievements made by the Covid-19 Emergency Response and Health Systems Preparedness Projcct, Ministry of Health during the period under audit, which are detailed in Annexure B of this report. IE wi.er ind i d must sui be o l a id and d4ad ai posiwn0 o/ respon 01iry mu t rell sla rive iadel. / Mae isty i po c)l" sN" mgyd V iF c P.O. Box: 191 Kawangjangsal Th imphu I Bhutan Tel +975-2-322111/328729/328730 I Fax: +975-2-323491 Website www.bhutanaudit.gobt Email: infoPbhuanauditRq.bt Title :Financial Audit Report of the World Bank funded "Covid-19 Emergency Response and Health Systems Preparedness Project, PPD, MoH, Thimphu 2. AIN SCID-2021-11 3. Head of the Agency Ugyen Dophu, Secretary EID No. 8901064: CID No. 10811000537 Pandup Tshering, Secretary EID No. 9009097; CID No. 11410008392 (From I6t" March 2021 to till date) 4 Drawing and Disbursing : Chening Peldon, Chief Finance Officer Officer EID No. 9610067 CID No. 10905003453 (From I' January 2017 to till date) 5. Finance Personnel : Tshering Pelden, Account Assistant I EID No. 2107091 CID No.11410008983 (From I" October 2017 to till date) 7 Period Audited 01/07/2020 to 30/06/2021 8. Schedule of Audit Start Date: 27/09/2021 End Date : 08/10/2021 9. Composition of team Team Leader: Tashi, Audit Officer ELID No. 20130101140 CID No. 11103000435 Team Members: I. Sherab Jamtsho, Audit Officer EID No. 20170107998 CID No. 10709003704 2. Karma Thinley, Sr. Auditor 11 EID No. 200907230 CID No. 11911000333 10. Supervising Officer : Kencho Doiji, Assistant Auditor General (AAG) EID No. 2101195 CID No. 10703001411 [I. Overall Supervising : Tasi 'obgay, Dy. Auditor General Officer LID No. 9811012 CID No. 10708001430 12. Engagement Letter RAA/DSA/SCID/04/2021-2022/1753 dated No 27/09/2021 13. Focal Person : Karma Thinley, Sr. Auditor 11 14. Date of Exit Conference : Not conducted .i,I UJ snme HII /. to he p i It Ii1iii.ot ia p(mat n0etkll ttt Juni Oiik, M A I I ell F ! iotI /ti Atit Me m T/i%~ /ii fl VI!itiJ i ____ Acronyms MoH Ministry of Health PPD Policy and Planning Division ISSAI International Standards of Supreme Audit Institutions RAA Royal Audit Authority ERHSPP Emergency Response and Health System Prepared Project MAR Management Appraisal Report AAG Assistant Auditor General AIN Audit Information No. AR Audit Report EID No. Employee Identity Card Number CID No. Citizenship Identity Card Number PLC : Project Letter of Credit account number FTCF Fast Track Covid- 19 Facility USD United States Dollar PPE: Personal Protective Equipment BFP Bank Facilitated Procurement ICU : Intensive Care Unit ERRH Eastern Regional Referral Hospital Table of Contents AUDITORS' REPORT ON FINANCIAL STATEMENTS OF THE WORLD BANK FUNDED "COVID-19 EMERGENCY RESPONSE AND HEALTH SYSTEMS PREPAREDNESS PROJECT," IMPLEMENTED BY THE POLICY AND PLANNING DIVISION, MOII, THIMPHU FOR THE FINANCIAL YEAR ENDED 30 JUNE EN CL OSURES ............................................-...... ......................................................... 1 Annewxure - A : Profle..................................--.......... ..... - ---......... -. --.*.*.. --.-. ****.*.--*. IV A nnexure - B: A chievem ents.......................................................-...---......-..*....--.-....***. AUDITORS' REPORT ON THE FINANCIAL STATEMENTS ROYAL AUDIT AUTHORITY RAA Biutan Integrity 5fouse 4' Reporting on Economy, Efficiency 9 Effectiveness in the use of Public Resources AtD IORS' REPORT ON FIANCIAL STATEMENTS OF 111 WRLD BANK FUNDDI) "COVID-19 EM kRGEN'CY RESPONSF AN! HEALTi SY PREPAREDNESS PROJECT, IMPLEMENTED BY THE POLICY AND VLANNIN( DIVISION, MOIL, TIIIMPI-I FOR THE FINANCIAL YEAR ENDED 30 JUNE 2021 Opinion We have audited the accompanying financial statements of World Bank funded "Covid-19 Emergency Response and Health Systems Preparedness Project" implemented by the Pohey and Planning Division (PPD), MoH, Thimphu (PLC Account No. 208.01/2030) which comprise the Receipt and payment Statement and schedules forming part of financial statements for the financial year ended 301h June 2021. In our opinion, the financial statements are prepared, in all material respects, in accordance with the Financial Rules and Regulations 2016 and Project Agreement. Basis for Opinion We conducted our audit in accordance with International Standards of Supreme Audit Institutions (ISSAls). Our responsibilities under those standards are further described in the Auditor 's Responsibilities for the Audit ofI'inancial Statement section of our report. We are independent of Covid- 19 Emergency Response and Health Systems Preparedness Management Unit, PPD, MoH, in accordance with RAA's Oath of Good Conduct, Ethics and Secrecy of Auditors, and we have filfilled our responsibilities in accordance with the requirements outlined in this Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for preparation of the financial statements in accordance with the Financial Rules and Regulations 2016 and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the Covid- 19 Emergency and Health Systems Preparedness Project Management Unit, Ministry of Health's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISSAls will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. ENCLOSURES а . � � � а е�^. т ® g w л а гч оо .ло м о а r, � г�i.. .. � ё � rcv'_ �� м � о�� � СΡ "а с�. � n °°.�.... °о им °о rйv rv' �л & г�; о� � й q � Q� О� Ф 'С ы _ д 1 ы г� � р о � � ,.. � `я � � �' нi�= Up� ._.. о о v�, и� И м О ® -� 9С W ФО'. ® С гТ. v+. С� Q ® О О ГУ KV eV о 4 а с и и ьп v д ос" ос� v� r,' иТ� О=. h tT q. Р Р� д < 'Т� гТ U гП © � � _ N О И д rv � W �� �;З . . ... а .. цJ .D ��.,. й дv. M1 С1 О f� .. Р , .: � .. V о ��а � Vй0 О � Q О О о � ц5 .С рр 4�7 об т ... � т й +�о � е ��--' © аи+ � Q <Т � � sT , ы 6 гЧ � . � � (L `�ьУ М � И Yt 1 ., М.. 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Ш LL . .. � � � LL � LL t_ ц� � Ср РО С] � 1 � ` 3 р }л у � £ й �� й с �Э Е LL U С7 � U - �� � с� B -B BANK OF BHUTAN STATEMENT OF ACCOUNT ACCOUNT NO. 202486647 ACCOUNITTYPE CA - CORPORATE CUSTOMER NO 21278235 NAME COVID 19 EMERGENCY RESPONSE ANU MEAL I'M SYSTEMS PREPAREDNESS STATEMENT FROM 0 1 -JUN-2021 to 02-SEP-2Q21 DATE OF OPENING 99-AOP-20'20 ADDRESS DEPARTMENT OF MACROECONOMIC AFFAIRS UD Limit 0 CURRENT BALANCE 17,924.390.41 THIMPHU RATE 0 THIM=THROM NA 000000 BRANUM NAME THIMPHU MAIN BRANCH Opening Balance as on 21/06/2021: 32,340,390A1 POST VALUE PARTICULARS CHEQUE NO/ DEBIT CREDIT' BALANCEI DATE DATE REFERENCE 21,106/2021 21/06/2021 TO TO TRANSFER DMEA1DMDAVB1TF- 1,600,000.00 30,740,3qO 41 6627/2020-21/3468: BILL 00000001 0093572 00020 2V0712021 21107/2021 TO TO TRANSFER: DM EA132 BASED ON 5,408,000.00 25,332,390,41 REQUEST BY PMU MOH/385: BILL 000000010093572 00020 11/0812021 1 1JOB12021 TO TO TRANSFER DM EA/DM DfWB/TF- 3,704,000.00 21,628 390 41 6627/2021-221104 UILL 000000010093572 00020 24/08/2021 24/0812021 TO TO TRANSFER DMEA1DMD/WB1TF- 3304,000.00 17,924,39U 41 6627/2021-22/123 BILL 0000000 1 Ong3572:00020 I Total 14.416f STATEMENT SUMMARY - OPENING BALANCE TOTAL DEBIT TOTAL CREDIT CLOSING BALANCF 32,340,390.41 14,416.000-GO 0.00 17,924,390 41 END OF STATEMENT UNLESS A CONSTITUENT NOTIFIES THE BANK IMMEDIATELY OF ANY DISCREPANCY FOUND BY HIM/HER IN HIS/HER STATEMENT OF ACCOUN-l IT W,ILL BE TAKEN THAT HE/SHE FOUND THE ACCOUNT CORRECT- THIS IS A COMPUTERIZED STATEMENT AND MAY NOT REOUIRE SIGNATURE. Page 1 of I Royal Government of Bhutan, Ministry of Health, Thimphu, Bhutan COVID-19 EMERGENCY RESPONSE AND HEALTH SYSTEMS PREPAREDNESS PROJECT Credit Number 66270-BT MoH-PPD/WB-M&E/2020-21 18" November 2021 Assistant Auditor General Social, Communication & Information Division Royal Audit Authority Thirnphu, Bhutan [Subject: Financial Statements for the Covid-19 Emergency Response & Health Systems Preparedness Project, Ministy of Health (Credit Number IDA 66270-BT)] Dear Sir, This representation letter is provided in connection with your audit of the financial statements of the Covid-19 Emergency Response & Health Systems Preparedness Project, Ministry of Health (Credit Number IDA 66270-BT) for the fiscal year ended June 30, 2021 for the purpose of expressing an opinion as to whether the financial statements are presented fairly, in all material respects, (or give a true and fair view) in accordance with the provision of the Public Finance Act, 2007; Public Finance (Amendment) Act, 2012 and the Financial Rules and Regulations 2016 of the Royal Government of Bhutan. We confirm that (to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves): Financial Statements: * We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter reference number RAA/SCID/04/2021-2022/1753 dated 27 September 2021, for the preparation of the financial statements in accordance with International Financial Reporting Standards; in particular the financial statements are fairly presented (or give a true and fair view) in accordance therewith. * Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. * All events subsequent to the date of the financial statements and for which the provision of the Public Finance Act, 2007; Public Finance (Amendment) Act, 2012 and the Financial Rules and Regulations, 2016 of the Royal Government of Bhutan require adjustment or disclosure have been adjusted or disclosed. Information Provided * We have provided you with: o Access to all information of which we are aware that is relevant to the preparation or the financial statements, such as records, documentation and other matters; PO Box 726, Kawang Jangsa, Thimphu, Bhutan 11001 www.moh.gov bt www fjcebook.com/MoBhutan PABX +975 2 322602, 322351, 328091, 328092, 328093 Royal Government of Bhutan, Ministry of Health, Thimphu, Bhutan COVID-19 EMERGENCY RESPONSE AND HEALTH SYSTEMS PREPAREDNESS PROJECT Credit Number 66270-BT o Additional information that you have requested from us for the purpose of the audit; and o Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. * All transactions have been recorded in the accounting records and are reflected in the financial statements. * We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves: * We have disclosed to you all known instances of non-compliance or suspected non- compliance with laws and regulations whose effects should be considered when preparing financial statements. The Financial Statements was prepared by Covid-19 Emergency Response & Health Systems Preparedness Project and the Finance Division of the Ministry of Health, Royal Government of Bhutan and signed on its behalf on 18th November 2021 by: (T shi Penjor) ( ring Peldon) Chief Planning Officer Accountant, DoS Ministry of Health Ministry of Health Cc: 1. Hon'ble Secretary, Ministry of Health for kind information 2. Director, DoS, Mol I for kind information 3. Office copy PO Bcx 726, Kawang Jangsa, Thimphu, Bhutan 11001 www.moh.gov.bt www facebook.com/MoHBhutan PABX +975 2 322602, 322351, 328091, 328092, 328093. Royal GoVrImenL Of Bhutan, Ministry of Health, ThimphuI, Hhutan COVID-19 EMERGENCY RESPONSE AND HEALTIU SYSTEMS PREPAREDNESS PROJECT S&nificani Am~outing PUlic and Kxpnatry Notes iiThe A recet Fin~n1i; Matemmcs have been prepared on cash basis; 2,Rcceipi of lunds in ihe Project are recugnized on ihe basis of recCip1t release from ie DPA, Ministry of Financ; 3. Expenditures are accounted ror on cash basis as and wlien disbursemenis are made; and 4. Replenishimnts from he World Bank are iade based on (he literim Unaudited Financial R2port (IlFR submicd on quarerly basis. } 1~ ~Projccl )iiector/(Chie inanczDhGf (PoetDireetor) s1H PPD, NoH WQQ Dusj OH ropa c 72G, VJ-.Ing lq.I,ni~,WU2liw oit4hI g,' <' E ~ *n :'c<. 2 'AU1 32w19u 32803 Annexure - A: Profile Background The project is funded by the World Bank with the objective to prevent, detect and respond to threats posed by COVID-19 and strengthen national systems for public health preparedness. This project is prepared under the global framework of the World Bank COVID-19 Response financed as part of the Fast Track COVID-19 Facility (FTCF). The project came to effect on 27' April 2020 with signing of project financing agreement between the l]on'ble Finance Minister, Ministry of Finance and Acting Country Representative, The Word Bank. The total project amount is USD 5 million with project closing date on 3 1 December 2022. The project consist of following components: sl. Emergency COVID- 19 Response 4.35 .1 Case Detection, Confirmation, Contact Tracing, Recording, 1.7 Reporting 1.2 Health System Strengthening 2.65 2.Community Engagement and Risk Communication 0.40 3. Implementation Management and Monitoring and Evaluation 0.25 4.Contingency Emergency Response Component 0.00