Indian Audit & Accounts Department Office of the Principal Accountant General (Audit-I) Karnataka, Bengaluru. No.Pr.AG (AU-I)/VS I/AMG II/C/2021-22/ ( 02.12.2021 To The Project Director, SMPU-DRIP, Water Resources Development Organisation, Ananda Rao Circle, Bangalore 560009 Sub: Report on the Project Financial Statement of World Bank Assisted Dam Rehabilitation and Improvement Project (DRIP) Loan No.7943-IN and Credit No.4787-IN for the year 2020-21 ending 31 March 2021 Sir, With reference to the subject cited above, I am to enclose the Report on the Project Financial Statement of World Bank Assisted Dam Rehabilitation and Improvement Project (DRIP) Loan No.7943-IN and Credit No.4787-IN for the year 2020-21 ending 31s March 2021. The receipt of the same may please be acknowledged. Yours faithfully Deputy Accountant General/AMG II -1) a!ifitsw w; fbis w, fe, w t 4.5398, keT - 560 001. /Audit Bhavan, 2nd Floor, 'C' Block, P.B. No. 5398, Bengaluru - 560 001. Ph. 080-22254683/36 Fax : 080-22380014, E-mail : agauKarnataka1@cag.gov.In, Website : http://www.agkar.cag.gov.ln Indian Audit & Accounts Department Office of the Principal Accountant General (Audit-I) Karnataka, Bengaluru. AUDIT CERTIFICATE REPORT ON THE PROJECT FINANCIAL STATEMENT FOR THE YEAR 2020-21 We have audited the accompanying financial statements of World Bank assisted Dam Rehabilitation and Improvement Project (DRIP) Loan No 7943-IN and Credit No 4787- IN which comprises the Statement of Sources and Applications of Funds and reconciliation of claims to Total Application of Funds for the year 2020-21. These statements are the responsibility of the projects management. Our responsibility is to express an opinion on the accompanying financial statement based on our audit. We conducted our audit in accordance with Auditing Standards promulgated by the Comptroller and Auditor General of India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our audit examines, on a test basis, evidence supporting the amounts and disclosure in the financial statements. It also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly, in all material respects, the sources and application of funds of World Bank Assisted Dam Rehabilitation and Improvement Project (DRIP) for the year 2020-21 ended 3 I'March 2021 in accordance with Government of India Accounting Standards. In addition, in our opinion, (a) with respect of Statement of Expenditures (SoE), ad -quate supporting documentation has been maintained to support claims to the World Bank for reimbursement of expenditure incurred; and (b) except for ineligible expenditures as detailed in the audit observations, if any, appended in this Audit Report and expenditures are eligible for financing under the Loan/Credit agreement. arfk www ; fh , i a M .5398, *Tlb - 560 001. 1Audit Bhavan, 2nd Floor, 'C' Block, P.B. No. 5398, Bengaluru - 560 001. Ph. 080-22254683/36 Fax: 080-22380014, E-mail : agauKarnatakal@cag.gov.in, Website : http://www.agkar.cag.gov.in During the course of the audit, the project financial statements and the connected documents were examined and these can be relied upon to support reimbursement for the year 2020-21 ended 31st March 2021 under the Loan/Credit agreement as detailed below. [Amount in Z] SI Total Less Expenditure Net amount No Component expenditure inadmissible eligible as reimbursable (70% of . .... per Audit eligible expenditure) 1 Dam Rehabilitation 11,47,80,041 0 11,47,80,041 8,03,46,029 and Improvement 2 Institutional 2,60,58,581 0 2,60,58,581 1,82,41,007 strengthening 3 Project 78,95,980 0 78,95,980 5,5,27,186 management Total 14,87,34,602 [0 14,87,34,602 10,41,14,222 This report is issued without prejudice to CAG's right to incorporate the audit observations in the Report of CAG of India for being laid before Parliament/State or UT Legislature. Deputy Accountant General/AMG-II udit-I) Bangalore Dated:02-12-2021 ANNEXURE MEMO OF DISALLOWANCES World Bank Assisted Dam Rehabilitation and Improvement Project (DRIP) Loan No 7943-IN and Credit No 4787-IN -Nil- Sr.A < it Officer/AMG II( AU- I)