%Tffcfmf~ Alr A0 I tq 114 3rqN19WWCM (M.1. AX.) Chidc Indian Audit And Accounts Department Office of the Principal Accountant General (G&SSA) Karnataka No.PAG (G&SSA)/CASSII/2018-19/ 7-3 Date: 21/12/2018 To The Project Director& Commissioner, Karnataka Watershed Development Project-II (Sujala-III), Watershed Development Department, 7th floor, Cauvery Bhavan, K.G.Road, Bangalore- 560009. Subject: Issue of Audit Certificate for the year 2017-18 in respect of World Bank assisted Karnataka Watershed Development Project-II (Sujala-III) IDA No. 50871N. Sir, Enclosed herewith the Audit Certificate together with Statement of Expenditure/Financial Statement for the year 2017-18 and Audit opinion/tbservation thereon in respect of World Bank assisted Karnataka Watershed Development Project-II (Sujala-III) IDA No. 5087 IN, implemented by Office of the Commissioner, Watershed Development Department. Please acknowledge the receipt of the same. Yours faithfully, DEPUTY ACCOUN NT G NERAL (GENERAL . CTO AUDIT) s r, ' 4' , L . 5398 *rf -560 001 / Audit Bhavan, 'C' Block, Post Box No. 5398, Bengaluru - 560001 Ph. 080-22254683 Fax :080 22380014 E-mail :agauKarnatakal@cag.gov.in website: http ://www.agkar.cag.gov.in Karnataka Watershed Development Project-I, (Sujala-III), IDA No.5087 IN Statement of Sources and Application of Funds Report for the year ended 2017-18 (Amount in Rupees) Particulars Current Year Up to Cumulative Previous Year for Project 01-04-2017 to 31.03.2017 31.03.2018 Opening Balance,(if cash Balances are 0 0 0 controlled by the entity) (A) Receipts Funds from Government through Budget (These will include external assistance for 194062195 864593499 1058655794 Watershed and Horticulture received by Government for the Project) Funds received directly by Project implementing authority through external 494883959 769261433 1264145292 assistance (Watershed and Horticulture) Beneficiary Contribution (if any) Total Receipts (B) 688946154 1633854932 2322801086 Total Sources (C=A+B) [as per A.G 688946154 1633854932 2322801086 (A&E)] Expenditures by Component (as per Dept.) (1). Improved Program Integration in 201212537 543941408 745153945 Rain fed Areas (2). Research, Development and 310070706 193772205 503842911 Innovation (3) Institutional Strengthening 12587394 56765722 69353116 (4) Horticulture 148077028 356275885 504352913 (5) Project Management and Coordination 30191988 78384292 108576280 (6) Government Staff (Horticulture) 23856293 64526859 88383152 Total Expenditure 725995946 1293666371 2019662317 (D) =(1)+(2)+(3)+(4)+(5)+(6) Advances (E) 37093841 340188561 377282402 Total Uses (F)=(D)+(E) 763089787 1633854932 2396944719 Closing Balance, (if cash balances are controlled by the entity) (C-D) Notes: 1. This Financial statement is prepared on a cash basis of accounting as per provisions of the Financial Rules and codes applicable. 2. The above figures will be based on monthly/quarterly abstract accounts prepared by the accounts compiling officers, duly reconciled by the respective DDOs with details of reconciled amounts to be furnished. 3. Names of accounting units whose financial statements are aggregated to prepare the consolidated accounts. 4. Advances is treated as expenditure for the year but it is not claimed during the year 2017-18 Karnataka Watershed Development Project-II, (Sujala-III), IDA No.5087 IN Reconciliation of Claims to Total Application of Funds Report for the year ended 2017-18 Schedules (Amount in Rupees) Current Up to Previous _Year Year Cumulative for (01-04-2017 to 31.03.2017 31.03.2018) Bank Funds claimed duringtheyearIincludes 473454816 871298356 1344753172 both watershed and Horticulture (A) Total Expenditure made during theyear includes 688946154 1633854932 2322801086 both watershed and Horticulture (B) Less: OutstandingAC II 37093841 340188561 377282402 bills (C) Ineligible expenditures III 147383061 25649778 173032839 (D) Expenditures not claimed IV 49631927 45219478 94851405 (E) (State Share) Total Eligible Expenditure Claimed 454837325 1222797115 1677634440 (F)=(B)-(C)-(D)-(E) World Bank Share @ 318386128 855957981 1174344108 70% of (F) above (G) 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 (F on the Statement of Sources and Application of Funds). 2. Outstanding AC bills (C above) reflect advances to partners and watershed Executive Committees (unsettled advances) 3. Expenditures not claimed (E above) may reflect timing differences for eligible expenditures incurred during the year but claimed after the year end. 4. Changes in the Up to previous year under expenditure not claimed (E) is due to the fact that the figures initially taken were corrected as detailed below. 5. As per the World bank guidelines, the Institutional Charges claimed by the Partners is not reimbursable. DEPUTY ACC NTANT GENERAL (GENEI L SECT R AUDIT) REPORT ON THE PROJECT FINANCIAL STATEMENTS We have audited the accompanying financial statement of the Karnataka Watershed Development Project-I, (Sujala-III), IDA No.5087 IN financial under World Bank IDA No.5087, which comprise the Statement of Sources and Applications of Funds and the Reconciliation of Claims to Total Applications of Funds for the year ended 2017-18. 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 application of funds of Karnataka Watershed Development Project- II, (Sujala-III), IDA No.5087 IN for the year ended 2017-18 in accordance with Government of India accounting standards. In addition, in our opinion, (a)with respect to 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, appended to this audit report, expenditures are eligible for financing under the Loan/Credit Agreement. During the course of the audit, SOEs/FMRs (each application no. and amount to be included) 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/State or UT Legislature. DEPUTY ACC NTA GENERAL (GENE LSEC ORAUDIT)