Office of the Director General of Audit ce No (Economic & Service Ministries) .iig (àz, -4 i t-o110 002 Indraprastha Estate, New Delhi-110 002 No. AMG-V/4(10)/World BanlzSUTP(2016-17)12017-18 /4 f Dated: i f 0912017 To Shri Mukund Kurnar Sinha, O.S.1) (U.T) and EX-officio Joint Seeretary, Ministry of iousing and Urban Affairs, Government of India, Nirman snawan, New Delhi -110011. Sub: Audit Report, Management Letter and Audit Certifieate in respeet of World Bank-GEF-UNDP assisted Sustainable Urban Transport Project (SUTP) Grant No. TF-095549-1N for the year 2016-17. Please find enelosed Audit Report, Audit Certificate and Managemnent Letter in respeet of World Bank, - Global Environment Faeility (GEF) - UntedNations DevtlOptflcflt Programme (UN[)P), assisted Sustainable Urban Transport Projeet (SUTP) Grant No. TF- 095549-iN for the year 2016-17. Ministry of Urban Development, New Delhi alongwvith financial statements submitted by the entity Yours faithfully, Lnel: Iks above (A~R'~ (MANAH KUMAR) TelephonC:era1 of Aui Teehn j+i124300iaiV9-1-3 39E al:pasm cggvi Office of the Director General of Audit (Economic & Service Ministries) T.Wri t, fq -110 002 Indraprastha Estate, New Delhi-110 002 No. AMG-V/4(10)/World BanlISUTP(2016-17)/2017-18 / 42_ Dated Report of the Comptroller and Auditor General of India in respect of World Bank assisted Sustainable Urban Transport Project (SUTP) Grant No. TF- 095549-IN for the year 2016-17 To Shri Mukund Kumar Sinha, O.S.D (U.T) and Ex-officio Joint Secretary, Ministry of Housing and Urban Affairs, Government of India, Nirman Bhawan, New Delhi -110011. We have audited the accompanying Financial Statements of the Sustainable Urban Transport Project (SUTP) financed under World Bank - Global Environment Facility (GEF) - United Nations Development Programme (UNDP) Grant No.-TF095549-IN, which comprise the Statement of Sources and Application of Funds and the Reconciliation of Claims to total Applications of Funds for the year ended 31 March 2017. These statements are the responsibility of the Project's Management. Our responsibility is to express an opinion on the accompanying Financial Statements 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 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 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 applications of funds of SUTP lbr the year ended 31" March 2017 in accordance with Government of India Accounting Standards. Telephone: +91-11-23403600, Fax: +91-11-23702359, E-mail : pdaesm@cag.gov.in In addition, in our opinion, (a) with respect to Interim Un-audited Financial Reports (IUFRs)/Statement of Expenditure (SOE), adequate supporting documentation has been maintained to support claims to the World Bank for reimbursement of expenditure incurred; except for audit observations mentioned in this audit report and other observations included in the Management letter appended to this audit report, (b) expenditures are eligible for financing under the Grant Agreement. During the course of audit, lUFRs/SOE amounting to T 681.74 lakh (T 68.17 million) for the year 2016-17 and conacted 'documents were examined, it was seen that during 3' quarter total amount released by Ministry to SUTP was Z 46 8&5jakh. SUTP made an adjustment of 12.96 likiainstead of Z 1.98 lakh on account of amount disallowed by audit during 2015-16. Hence the expenditure was understated by T 10.98 lakh. Further during the 4h quarter of the year, an amount of Z 5.19 lakh was refunded by LTA Academy Singapore, hence ? 687.53 lakh (Z 681.74 lakh + Z 10.98 lakh - Z 5.19 lakh) (Z 68.75 million) can be relied upon to support reimbursement under the Grant Agreement for the year 2016-17. The details of expenditure incurred, admitted and disallowed are mentioned in table below: (Z in lakh) Total Expenditure incurred 681.74 Comment Brief Subject Expenditure Amount No. understated Disallowed I During 3rd quarter total amount released by Ministry 10.98 to SUTP was Z 468.85 lakh. SUTP made an adjustment of Z,12.96 lakh instead of Z 1.98 lakh on account of amount disallowed by audit during 2015- 16. Hence the expenditure was understated by Z 10.98 lakh. 2 Refund of unspent balance towards Builders Leaders 5.19 in Urban Transport Planning (LUTP) under the World Bank-GEF-UNDP held at LAT Academy, Singapore Total expenditure understated Z 10.98 lakh minus 5.79 refund disallowed of Z5.19 lakh Net amount of expenditure allowed for Z 687.53 re-imbursement (Say Z 68.75 million) This report is issued without prejudice to C&AG's right to incorporate the audit observations in the Report of C& AG of India for being laid before Parliament. (MA SH KUMAR) Director General of Audit Office of the Director General of Audit (Economic & Service Ministries) i9 K 4,q -110 002 Indraprastha Estate, New Delhi-110 002 No. AMG-V/4(10)/World Bank/SUTP(2016-17)/2017-18 /44/ Dated : AUDIT CERTIFICATE The Expenditure Statements of World Bank assisted Sustainable Urban Transport Project financed tinder World Bank-GEF-UNDP Grant No.TF-095549-IN, Ministry of Urban Development for the year 2016-17 attached hereto have been audited in accordance with the regulations and standards of audit of Comptroller and Auditor General of India and accordingly included such tests of accounting records, internal checks and controls and other auditing procedures necessary to confirm. a) That the resources were used for the purpose; and b) That the expenditure statement / financial statements are correct. During the course of audit, IUFRs/SOE amounting to Z 681.74 lakh (Z 68.17 million) for the year 2016-17 and connected documents were examined, it was seen that during 3rd quarter total amount released by Ministry to SUTP was ? 468.85 lakh. SUTP made an adjustment of Z 12.96 lakh instead of Z 1.98 lakh on account of amount disallowed by audit during 2015- 16. Hence the expenditure was understated by ? 10.98 lakh. Further during the 4th quarter of the year, an amount of ? 519 lakh was refunded by LTA Academy Singapore. hence ? 687.53 lakh (Z 68.75 million) can be relied upon to support reimbursement under the Grant Agreement for the year 2016-17. On the basis of the information and explanations that have been obtained as required and according to the best of our information, as a result of the test audit, it is certitied that the Expenditure Statements/Financial Statement read with the observations mentioned in the Management letter, represent a true and fair view of the implementation of the Project for the year 2016-17. (MAN S KUMAR) Director General of Audit Telephone: +91-11-23403600, Fax: +91-11-23702359, E-mail: pdaesm@cag.gov.in Project Financial Statement Format No.3.3a.STATEMENT OF SOURCES AND APPLICATION Name of the PIA: Ministry of Urban Development For the Year Ended: March 2017 For GEF Grant Component Amt in thousands INR 601 (NURM) State Own GEF Total Contribution Contribution Receipt Opening Balance 3,467.75 , - - (3,467.75)i - Receipt During the period 46,991.70 - - 21,182.07 68,173.77 Total (A) 50,459.45 - - 17,714.32 68,173,77 Expenditure/Outflows FUNDED BY BANK Conusitants Services and Training for Part 1 of the Project till 11.8.13 - Conusitants Services and Training for Part I of the Project after 12.8.13 68,173.77 68,173.77 Total Expenditure - - - 68,173.77 68,173.77 Balance (A-B) 50,459.4054 - (50,45945)1 - qx,1 0e S CA. Raj e Kumt r \A FINANCE MANAGER GEF-SUTP ' PROJECT DIRECTOR o Date Date 27.7 ? 7 Grant No: TF-095549 Reconciliation of Claims to Total Applications of Funds For the Year Ended: March 2017 Name of the PIA: Ministry of Urban Development Amount in Thousands (INR) Schedules Current Year Previous Year Project to date Bank Funds claimed during the year (A) 1 71,625.52 37,202.74 2,25,889.08 Total Expenditure made during the year (B) 68,173.77 34,610.88 2,27,357.46 Less: Outstanding Advances (C) II - Ineligible expenditures (D) III Expenditures not claimed (E) (Note -1) IV - 3,451.75 Expenditure not covered for allocation i.e. 100% money Will be reimbursed by some other funding agencies.(F) V Total Eligible Expenditures Claimed {G)=(B)-(C)-(D)-(E)-(F) 68,173.77 31,159.13 2,27,357.46 World Bank Share @ 100 % of (G) above (H) * 68,173.77 31,159.13 2,25,889.08 * World Bank share changed to 100% from 91% from 12.8.13 CA. Rajeev Kumar U 0 FINANCE MANAGER,,l an sy PROJECT ]RECTOR oos cy GEF-SUTP c) 5 co Date C Date 2.2)2 Notes: 1. Total expenditure made during the year (B above) must be the same as the Total Expenditures shown on the Statement of Sources and Applications of Funds (D on the Statement of Sources and Applications of Funds) 2. Outstanding advances refer to advances which has not been adjusted at the year end. 3. Expenditures not claimed (E above) may reflect timing differences for eligible expenditures incurred during the year but claimed after the year end. Schedule - I List of Claims submitted to World Bank Date of Application Application Number Period Amount Claimed (in thousands) 23-May-16 26 March 2016 3,451.75 22-Aug-16 27 April 2016 to June 2016 17,730.32 17-Nov-16 28 July 2016 to Sep 2016 - 15-Mar-17 29 Oct 2016 to Dec 2016 45,588.96 30-Mar-17 30 Jan 2017 to Feb 2017 4,854.49 25-May-17 March 2017 - Total 71,625.52 Schedule -2 List of Outstanding Advances (C) (amtinthousands INR) Party Name Current Year Previous Year Project to Date Schedule - 3 Ustbof Ineligible expendituyres (D) (amt in thousands INR--------- Particulars Current Year Previous Year Project to Date NIL Schedule-4 List of Expenditures not claimed E) (amtin thousands INR) Particulars Current Year Previous Year Project to Date Schedule - 5 List of amount tobe reimbursed by some other funding agencies. (amt in millions INR) Particulars Current Year Previous Year Project to Date NIL Note: Reconciliation of Claim for the year 2016-17 Particulars Amount Total Claim as per Schedule 1 71,625.52 Less: claim pertaining to year 2015-16 claimed in 2016-17 (3,451.75) Claim for the Year of 20 15-16 68,173.77 Schedule - 1 List of Claims submitted to World Bank Date of Application Application Number Period Amount Claimed (in thousands) 23-May-16 26 March 2016 3,451.75 22-Aug-16 27 April 2016 to June 2016 17,730.32 17-Nov-16 28 July 2016 to Sep 2016 - 15-Mar-17 29 Oct 2016 to Dec 2016 45,588.96 30-Mar-17 30 Jan 2017 to Feb 2017 4,854.49 25-May-17 March 2017 Total 71,625.52 Schedule- 2 List of Outstanding Advances (C) (arnt in thousands INR), Party Name Current Year Previous Year Project to Date Schedule - 3 List of Ineligible expenditures (D (tmt in thousands INR) Particulars Current Year Previous Year Project to Date NIL Schedule - 4 List of Expenditures not claimed (E) (amt in thousands INR) Particulars Current Year Previous Year Project to Date Schedule - 5 List of amountto be reimbursed by some other funding agencies. (amt in millions INR)-, Particulars Current Year Previous Year Project to Date NIL Note: Reconciliation of Claim for the year 2016-17 Particulars Amount Total Claim as per Schedule 1 71,625.52 Less: claim pertaining to year 2015-16 claimed in 2016-17 (3,451.75) Claim for the Year of 2016-17 68,173.77 461, 7