F.No. SD-22/18/2018-IC
Government of India
Ministry of Skill Development & Entrepreneurship
3rd Floor, Shram Shakti Bhawan,
New Delhi, the 28,h January, 2020
OFFICE MEMORANDUM
Subject: Forwarding of Inspection Report on the Certification Audit conducted by C&AG
for the FY 2018-19 for SANKALP/ SIMO Programme - reg.
The undersigned is directed to refer to the subject cited above and to state that as per the
requirement of the World Bank, the Certification Audit for SANKALP/ SIMO Programme was
conducted by C&AG for the FY 2018-19, from 03.12.2019 to 09.12.2019. A copy of the
inspection report on the Certification Audit received from C&AG is accordingly forwarded
herewith for kind information and necessary action please.
2.    This issues with the approval of Competent Authority.
Y   r' faithfully,
(Lendup Sherpa)
Under Secretary to the Govt. of India
Tel.no.23465892
Encl: As above.
To,
Shri Sameer Kumar Khare,
Addl. Secretary,
D/o Economic Affairs,
M/o Finance, Room No: 141,
North Block, New Delhi.
Copy to:
i) Ms.Shabnam Sinha, Lead Education Specialist & Task Team Leader, The World Bank
Group, 70, Lodhi Estate, New Delhi - 110 003
ii) PPS to Additional Secretary, MSDE.
iii) PS to Director (SANKALP), MSDE


OFFICE OF THE DIRECTOR GENERAL OF AUDIT,
CENTRAL EXPENDITURE, I.P. ESTATE, NEW DELHI-110002
Inspection report on certification Audit of World Bank Assisted-Skills Acquisition and
Knowledge Awareness for Livelihood Promotion (SANKALP) project (Loan No. 8769
IN & Program ID P-158435) for the year 2018-19.
Part-I-A
(A)   Introduction:
The Certification Audit of the World Bank assisted Skills Acquisition and Knowledge
Awareness for Livelihood Promotion (SANKALP) project (Loan No. 8769 IN) for the year
2018-19 was conducted by an audit party of the Office of the Director General of Audit
(Central Expenditure), New Delhi comprising Smt. Madhumathi Raj, Sr. Audit Officer, Shri
Dinesh Chand Mahawar, Assistant Audit Officer, Shri Manoj Kumar, Assistant Audit Officer
and Sh. Laxmi Narayan, Sr Auditor from 03.12.2019 to 09.12.2019 (05 working days).
(B)   Scope and Objective of the Project
Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) project
aims to implement the mandate of the National Skill Development Mission (NSDM)I, which
was launched on 15th July 2017 by Ministry of Skill Development & Entrepreneurship
(MSDI) through its core sub-missions. The programme implementation period is September
01, 2017 to March 31, 2023. The project will be implemented in mission mode through
World Bank support and is aligned with the overall objectives of the NSDM. The main
objectives of the project include strengthening institutional mechanisms at both national and
state levels, building a p.ool of quality trainers and assessors, creating convergence among all
skill training activities at the state level, establishing robust monitoring and evaluation system
for skill training programs, providing access to skill training opportunities to the
disadvantaged sections and most importantly supplement the 'Make in India' initiative by
catering to the skill requirements in relevant manufacturing sectors. SANKALP is an
outcome oriented project supported by World Bank. The project will focus on the overall
skilling ecosystem covering both Central (MSDE, NSDA and NSDC) and State agencies and
outcomes will be measured through Disbursement L,inked Indicators (DLIs) agreed between
MSDE and the Bank. A DlI verification protocol has also been established to measure DILIs
on a periodic basis.
(C)   Funding
Under SANKALP four key result areas have been identified, viz. (i) Institutional
Strengthening; (ii) Quality Assurance; (iii) Inclusion and (iv) Expanding Skills through PPPs.
The results shall be achieved in time bound manner by utilising the project funding of S 675
Mn (  4455 crore). The project is funded by three major parts: (i) World Bank loan assistance
of S 500 Mn (Z 3300 crore) under Program for Results (P for R) instrument which includes
Program Funding and Technical Assistance (TA); (ii) States' contribution $100 Million
(Z660 crore) and (iii) Industry contribution of $75 Million (Z 495 crore). The project shall be
reviewed after 3 years and additional component of $ 250M shall be negotiated subject to the
NSDM is an institution registered under PPP model on 08.08.2011
Page 1 of 4


progress found satisfactory. First tranche of $ 250 M was negotiated on 24th May 2017 and
approved by the Board of World Bank.
(D)   Project Components:
SANKALP has been designed to operationalise the sub-missions under the National Mission.
The SANKALP program consists of four objectives: (i) Strengthened institutional
mechanisms at National and State levels to guide planning, delivery and monitoring of
market relevant training; (ii) Improved Quality and Market Relevance of SD programs; (iii)
Improved access to and completion of skills training for female trainees and other
disadvantaged groups and (iv) Expanding skills training through private-public partnerships
(PPPs).
(E)                            Current Audit
Para 01 Un-authorised expenditure amounting to Z 61.38 lakh on hiring of Manpower
As per the Statement of Expenditure Z 35,12,647/- was incurred for manpower
agency, "Manpower Services lvt. Ltd." and Z 26,24,928/- were incurred on the Consultant
hired. 'T'he manpower agency and consultants were hired before the commencement of the
SANKAIP Project. Audit scrutiny revealed that no formal approval either from the World
Bank or from the Programme Appraisal Board (PAB) of the Ministry of Skill Development &
Entrepreneurship was obtained for continuation of the agency & consultants. In the absence
of the approval, the payment made to manpower agency and consultants to Z 61.38 lakh was
unauthorised. 'The amount may be approved by PAB under intimation to audit
In this regard half margin no. 01 dated 09.12.2019 was issued, reply is awaited.
(F)   General
The General conditions of the accounts of World Bank Assisted SANKALP project (Loan
No. 8769 IN) for the year 2018-19 was found to be satisfactory subject to the observations
brought out in the report.
The Inspection Report has been prepared on the basis of records/information
furnished and made available by the auditee. The office of the Director General of Audit
(Central Expenditure), New Delhi disclaims any responsibility for any misinformation and/or
non-infor-atilon on the part of auditce.
Sr.A.O. (AMG-V)
Page 2 of 4


Report of the Comptroller and Auditor General of India
We have audited the accompanying financial statements of the Skill India Mission Operation
(SIMO) Project financed under World Bank Loan no. 8769 IN & P.ID-158435, which
comprise the Statement of Sources and Applications of Funds and the Reconciliation of
Claims to Total Appropriations of Funds for the year ended March 2019. These statements
are the responsibility of the Project's management. Our responsibility is to express an opinion
on the accompanying financial statement based on our audit.
We conducted our audit in accordance with the Auditing Standards promulgated by the
Comptroller and Auditor General of India. Those Standards require that we plan and perfomn
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 disclosures in the financial statements. It also includes assessing the accounting
principles used and significant estimates made by 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 Skill India Mission Operation (SIMO) Project for the year ended
March 2019, in accordance with Government of India accounting standards.
In addition, in our opinion, (a) with respect of SOEs, adequate supporting documentation has
been maintained to support claims to the World Bank for reimbursements of expenditures
incurred; and (b) except for ineligible expenditures as detailed in the audit observations, if
any, appended to this audit report, expenditures are eligible for financing under the
Loan/Credit Agreement. During the course of audit, SOEs/FMRs (amount Z 12,51,58,832/-)
and the connected documents were examined and these can be relied upon to support
reimbursement under the Loan/Credit Agreement.
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.
Directe (AMG'N)
Page 3 of 4


Calculation sheet
Claimed amount         Amount certitied
Z 12,51,58,832            Z 12,51,58,832
Page 4 of 4