($vernment of Nep3 MINISTR OF¶ ATE ShUPPLY a one:4211693 Fax: 977-1-4211433 Singhadurbar, f'. Kathmandu, Nepal Ref No.:-3. 30 April 2019 To, Joep Verhagen, The Task Team Leader, Senior Water and Sanitation Specialist World Bank - Water, MC World Bank, 1800 H-Street, r-t L Washington DC, 1 USA Subject:About Audited Report of FY 2074/075. Please find enclosed copy of the Audited Report of FY 2074/075 of RWSSIP Component-2. Appreciate your kind cooperation in this regard. C(ok rasad )hital D. Project Director, RWSSIP-C2 Project Management Unit Phone: 4258174 4266034 Office of the Auditor General 4255707 A.G. Fax: 977-1-4268309 A, . 167fl6u 1 'PRT Fax : 977-1-4262798 XLSo 0Post Box : 13328 The Secretary W6 Am ' ' Ministry of Finance Wa Babar Mahal, Kathmandu, Nepal Singhdurbar, Kathmandu Date 23 April, 2019 Report on the Financial Statements We have audited the accompanying Project Financial Statements including Statement of Advance account and Statements of Expenditures (SOEs) of the " Rural Water Supply and Sanitation Improvement Project Component 2: " financed by IDA Credit 5446 NP and IDA Grant H945 NP as at 16 July 2018 (32 Ashad, 2075)and for the year then ended and a summary of accounting policies and other explanatory notes. Management's Responsibility for Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements In accordance with the Government of Nepal (GON) accounting policies and relevant practices. This responsibility includes:- designing, implementing and maintaining internal control relevant to preparation and fair presentation of project financial statements that are free from material misstatement, whether due to fraud and error. Auditor's Responsibility Our responsibility is to express an opinion on these Project Financial Statements based on our audit. We conducted our audit in accordance with the INTOSAI (International Organization of Supreme Audit Institutions Fundamental Auditing Principles. Those Principles require that we plan and perform the audit to Obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion Management letter highlighting areas for improving financial management is attached herewith. In our opinion, the Project Financial Statements including Statement of Advance Account and Statements of Expenditures (SOEs) in all material respects, give a true and fair view of the financial position of the" Rural Water Supply and Sanitation Improvement Project Component 2: District Level Institutional Strengthening " financed under IDA Credit 5446 NP and IDA Grant H945 NIP as of 16 July 2018 (32 Ashad, 2075), and of the results of its operations and its cash flows for the year then ended in accordance with GON accounting policies. We also report that funds provided under IDA Credit 5446 NP and IDA Grant H945 NP has been utilized for intended purposes. In addition, with respect to SOEs; (a) adequate supporting documentation has been maintained to support claims to donors for reimbursement of expenditures incurred; and (b) expenditures are eligible for financing under the above-mentioned Credit and Grant. Baburam Gautam email. oagnep@ntc.net.np, info@oag.gov.np Web Page: www.oagnep.gov.np Government of Nepal Ministry of Water Supply Rural Water Supply and Sanitation Improvement Project (Component 2: Promoting long term sustainability management schemes) (Credit:IDA 5446-NP and Grant: IDA H945-NP) Project Management Unit dited Financial Statement '074/75 (2017/18) Ist. Si '2074 (16th. July 2017 to 16 th. July 2018) Government of Nepal Report 2(A) Ministry of Water Supply Rural Water Supply and Sanitation Improvenent Project - CoMponent 2 Project Management Unit IDA Credit 5446-NP and Grant H945-NP Audited Financial Statement FY 20 17/18 (2074/75) Period: 1st.Sharwan, 2074 to 32 Asar, 2075 ( 16 July, 2017 to 16 July, 2018) - -- ir~;r~~tin NtRhý Description Cumulative up to FY FY 2017/18 ¯ ¯¯l¯¯ ¯¯ e urti 201617Cumuative upto -vri AnnelIJCI /udLM Allocation ¯¯¯¯ 0-- -2 GoN Funds ¯¯ ¯¯ _--- -- ¯ ¯¯ -- - 3 8,933,000 0¯¯ ¯ - - -- - - - ursable Funds (!DA Credit) ¯¯0¯¯¯¯3-- - -- _8_10_0 00 1 14 000 00 : oN Reimbur Funds (IDA Grant) _3 282.847,800 00 _9__5__ _1690754 m_Gti8045e8 saN rbe i_ - 3 d 127,202,200 00 ).87.:: 000 00 1 ~~ -. .- _ .._ _ T tl4 - -7 ,> __ 214,467 2 00 Total C B418,983,000.00 263,500,000.00 682,48300.00 Ci sb/ nh Balance -_ ¯¯ ¯ -- -- - _ _ u e ts ol Funds --- - -- - - -.- GoN Fund-23 - -- ___.__ GoN Reimbursable Funds (IDA Credit)_¯¯ ¯ 1 31 41 _ __ _3 8 20 O0 7J 1 33 41 IlrN Reimbursable Funds (JDA Grant) ¯2 12ý50 04100 _ __ 0'i 00 26.619 9sr-' Oosignated account replinshable (IDA Credit) ¯ ¯ ¯_ _?2,6l,;-J.-183 80 80Q Mesignated account replinshable (IDA Grant) ¯¯¯¯ ¯¯ - -3 8 15 183 80 I/A_/-d ¯¯ -5-3--- - - - 6 4--- -- ..-- __ .__ 157 4 320 _ __ 1 15 4332 11AFunds IDA Credit U¯¯¯¯¯¯7--,----4-7-7-- - - - - - ____6814` DA Grant ¯ - 3- ---.4 16 10 368 00 1 1 __ ~130112k -- --- o-d -e _ _ ___ ___Total (A+B) 112,054758.25 27,878,13525 )ses of _Fu_nds by_Caleg r _s¯ ¯ ¯¯ ¯ ¯¯ ¯ ¯ --- - - - ------1-,82 3/7002 787 135 5 '5 - Sonsultants'_Service, Training and Goods i11 366- -- 215 91-- -23 53 Co-ts e- Mo -ss -- -- 6,962 100 72 5 001 011 00 11 111 72 Tota __ 11205,.758.25 115,83 /700 227,878,135 25 - -- - - _ - ._ Total [9+14 _ __112 054,758.25 ¯11582337700 227¯878¯1352 red Account Statement i 1pnyii Balance ¯ -__ - 32,380 776 lnd i crved from IDA - - --- / 47 Funds e3 O ¯¯ -9 00 73602357 2' i tra unds Avauable 123.736,002.38 68,894,97547 -157.2S 0 201.38 i --- - - - - - - 31.918 84 ý j ss: Transfer G G N T ,ii d Account¯¯¯ 9¯¯ 84 ---- - - C 1-54.813 034 'i Gosing Balance_3-4-+-.6 - .1 (1_21 368 63, -___ 32 360776.47 -1---- -_- -- --1228,797,91 1,228.79791 de A c mr Tiaur Surya Pný sad« Gautam Pr;ukrsFn PudashaiC Anion hadra Khanar oeii nre rnr TDukur Generan (lde sciI:l-,,ce>,,,É eii enco r .rkl nny Financial Conipiroller General Deputy Audio eea NIN/" MssVCO A Rural Water Supply ald 3,ilet improvemem 1,ect - Component 2 Note Projoct Minagement Unit Statement nt Expendillure by CategoryiLine Item FY 2017/18 (2074/75) Hudget Heads 3131153/3131154 Period: lst Sharwan, 20/4 to 32 Asar, 2075 ( 16 July, 2017 to 16 July, 2018) Airoe in NNls ' 11gory Cumulative-- No Line Item Budgevture upto Budget Allocation _ . __e -- -- 201 7 FY 2017/18 % Balance Budget expenditure to date 22411 Consullanicy and Services 500,000 n - 00%* 500.00000 100 00% . n22__, _ 6,950 00 6,000,000 00. 1,196648 00. g 19% 4 803 :0Gý'- 123580 -- .0352 00 80 Oow 1,213,598 00 .-- __,48,105 00 41)0u. 99% 16 00 9009% 7 '79.164 00 29311 Furniture and Fixtures 1,62143 03 20 12.2200 610% 1 0211 3 29411 Vehicles d U1 -- 0 00 ___ 11,000 000 0 10,999.876 00 100 0% 124 0' 000% 21 {101 /6 00 29511 Eiquipment 8017,38200 3 000 000 00 5243200 I 7% 9'r'568 00 9825% (I 09 1400 Capital Research and .__ 2420 % 29,6 0 9 5 _809840 22711 Consiltancy 81,957,177 50 190,000,000 00 94,324,253 00 496% 95,675,747 00 5036% 176 :8 1,430 50 S 29712 Software Developmei __ -1.000,9000 29712~ ~ ~ ~ -.a 1.03,00 -0 0 0% 1,000,000 00 100 00% - -a.5 105,092,657.53 _ 52700000 00 _110,822 366_00 439% 141,877,634_00 56 14% 215>915,023.53 ----1 #DI//0!_ #Div/0! _21_113 |Allowance ---#DIV/OI 21119 OtherAllowance 150,00000 600,00000 62,50000 104% 537,50000 89 58% 2 _5000 22112 Communication Chiargos . 398.000 00 00% _ 398,000 00 100 00% 22211 Fuel ad Oil Vehicie | 155 131 00 1 552 000_00 0590_00 68% 1 446. 20 9320% 260.711 00 22212 O_ePO(n and Maitriainree 737 9979 1.20"000 0 1,199,867 00 100 0% 133 00 001% 1,937,66679 22213 FSura2ce __020,0000000 QUO 00 00% _ 200,000 00 lo in _.20,00000 22311 General Office Expenses 1,670,215 00 1.250.000.00 1 240.435 00 992% 9,56500 077% 2,910,650 00 22412 Other Service_Ohirge 3.1983014 G3 1.800,000 00 1554,820 00 864% 245 18000 13 82% .75283463 22611 Moniorinr and Evaalion _ 34A2000 3,000,000 00 538,761 00 180% 2,461,239 00 82 04% 1.373,181 00 22612 Traveling E penses 500.000 00- 00%, 500.000 00 100 0'0%, 22711 rscellaneous esnses 196,52030 300,000 00 299,048 00 99 7% 95200 032% 49556830 Total of Catego 6 6,962,100.72 10,800.000.00 5,001,011.00 46.3% 5,79898900 5369% 11,963,111.72 Grand Total 112,054,758.25 263,500,000.00 115,823,377.00 440% 147,676,623 00 5604% 227,878,135 25 (Prakash Pudashaini) Amt fhacra Wli Under Secretary(Account) Jii S Kcrerar VIOWSS RWSSIP Rural Water Supply and Sanitation Improvement Project - Component 2 Project Management Unit IDA Credit 5446-NP and Grant H945-NP Period: 1st Sharwan, 2074 to 32 Asar, 2075 ( 16 July, 2017 to 16 July, 2018) GoN and GoN Reimbursable Funds - ______________Anriount in NI > О м оо о�^., � �'- 4'_' 1 а0 : s U> �• � r ._ °• • мI `O. : т ,"� � C0 ^+ ^ � о � °, '^ " " `д м о� � Ь9 'п И С� f� � 00 �р м �� _.� � Е и ' о� _ м ' � ~ и � � � гМ,, � r � � Q U � � �r v �aI -. о...- И оо ^ � о с� г'1 1� 'Х� о .� N С � �р � �Т � � N Е`� f . 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