bAq)fcPF, ;I f qv-1I10 002 uffut f ft t--110 001 fqM4 :-,,Audit Certificate, National Hydrology Project (NHP) in respect of National Project Monitoring Unit (NPMU), New Delhi, (Loan No 8725-IN) for the year 2016-17 Sir, Please find enclosed 'Nv e4. Audit Certificate, National Hydrology Project (NHP) in respect of National Project Monitoring Unit (NPMU), New Delhi, Loan No. 8725-IN) for the year 2016-17 Yours faithfully Encl: As above Dy. Director (EA) Copy for information and necessary action to: _Ij7-u. Director, National Hydrology Project, Rear Wing, 2nd Floor, MTNL(MDSS) Building, CGO Complex, Lodhi Road, New Delhi-110003 2. The CAAA, Ministry of Finance, Department of Economic Affairs, 5' Floor, B Wing, Janpath Bhawan, New Delhi- 110001. Dy. Irector (EA) 1W7t t.zw. 'Wq, T VJf -110002 DIRECTOR GENERAL OF AUDIT SCIENTIFIC DEPARTMENTS A.G.C.R. BUILDING, I.R ESTATE NEW DELHI-110 002 Report of the Comptroller and Auditor General of India To The Secretary to the Government of India Ministry of Jal Shakti, Shram Shakti Bhawan, Rafi Marg, New Delhi-1 10001 Report on the Project Financial Statement We have audited the accompanying financial statements of the National Project Monitoring Unit (NPMU), New Delhi, National Hydrology Project (NHP), financed under World Bank Loan No.8725-IN, which comprises the Statement of Sources and Applications of Funds and the Reconciliation of Claims to Total Application of Funds for the year ended 31 ' March 2017. These statements are the responsibilities 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 perforn 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 statement. 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 "National Project Monitoring Unit (NPMU), New Delhi," for the year ended 3 1s March 2017 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 reimbursement of expenditure incurred; during 2016-17 (an expenditure of Rs.329.87 lakh was incurred under the project), and (b) except for ineligible expenditure of Rs. 14.31 lakh as detailed in the audit observations appended to the audit report, expenditure of Rs. 157.78 lakh are eligible for financing under the Loan/Credit Agreement. During the course of audit, Statement of Expenditure/Financial statement amounting to Rs. 329.87 lakh and the connected documents were examined which can be relied upon to support reimbursement of Rs.157.78 lakh under the Loan Credit Agreement, as per the 'Annexure'. 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. Direct neral of Audit Scientific Departments Place: New Delhi Date: Annexure (Statement-A) Statement of Expenditure incurred by NPMU under National Hydrology Project Loan No.8725- IN for the year 2016-17. (Amount in Rs.) Sl. Namne of the Total Actual Exlendi Expenditu. Percentage Amount INo Offices Amount expendit ture re admissible reimbursa as per ure disallow admitted as per ble SOE verified ed in in Audit agreement in Audit Audit 12 3 4 6 7 8 9 1. NMU, New 32986841 32986841 1430598 31556243 50% 15778122 Delhi Total 32986841 32986841 1430598 31556243 50% 15778122 Dy. irector (EA) (Statement-B) Details of disallowances made from the expenditure incurred by NPMU under Natioual fydrology Project Loan No.8725- IN for the year 2016-17. Office Reasons for disallowance Amount disallowed (Amount in Rs.) NpMU, New Journey performed during February 2016 32806 Delhi Purchase made in January 2016 269855 Purchase made in January 2016 151980 Purchase made in February 2016 168452 Purchase made in January 2016 470335 . Purchase made in Januar 2016 1314 136148 Journey performed in December 2015, January 2016 and Pebruary 86121 2016 February 2015 to January 2016 20469 February 2016 to March 2016 3436 Journey pierfornmed during July 2015 1830 Original Vouchers for expenditure amounting to Rs. 89166tnot 89-166 provided Total 409 Dy. Director (EA) (Statement-C) Details of Reconciliation of claims of total application of funds for NPMU under National Hydrology Project Loan No.8725- IN for the year 2016-17. (Amount in lakh) Schedules Current year A 329.87 B 14.31 C 315.56 D 157.78 (Rs. in lakh) Total expenditure made during the year (A) =Rs. 329.87 Less: Ineligible expenditure (B) = Rs. 14.31 Total Eligible expenditure (C) = (A-B) Rs. 315.56 Amount reimbursable (50%) by bank (D) = Rs. 157.78 Dy. Director (EA) , Audit Comments on Certificption Audit of "National Hydrology Project, Wold Bank Aided Project for the year 2016-17. General Comments: The test check of the original vouchers for the year 2016-17 revealed the following: 1. Non admissible retroactive financing -The loan agreement with International Bank for Reconstruction and Development became effective from 5th May 2017. As per Para 5.8 of Project Implementation Plan of National Hydrology Project, payment made by the recipient not more than 12 months before the signing date of the finance agreement, were to be considered for financing. During scrutiny of accounts, Audit observed that the following payments amounting to Rs. 1341432 were made for the expenses incurred prior to 12 months of signing date of agreement and as as such this may be treated as disallowed: Voucher Particulars of the Amount Expenditure Reasons for Disallowance number Vouchers disallowed (in during audit rupee) OAEHES- TA bill of Sh. 36026 32806 Journey performed during February 21928 Ashok Gupta 2016 OEHDS-1/192 Purchase of Lenovo 269855 269855 Purchase made in January 2016 computer OEHDS-4/190 Purchase of Office 151980 151980 Purchase made in January 2016 Std. 2016 OEHDS-2/191 Purchase of Canon 168452 168452 Purchase made in February 2016 Printer OEHDS-5/188 Purchase of 470335 470335 Purchase made in January 2016 D.C.Copier OEHDS-6/187 Purchase of Sony 136148 136148 Purchase made in January 2016 Projector OEIIDS-7/389 Hiring of Taxi 86121 86121 Journey performed in December 2015, January 2016 and February 2016 OEHDS- Telephone Bill of 20469 20469 February 2015 to January 2016 15/2567 Sh. Deepak Gupta OEHDS- -do- 18883 3436 February 2016 to March 2016 32/4079 DTEHDS- TA bill of Sh. 1830 1830 Journey performed during July 2015 1/1460 Ashok Gupta TOTAL 1341432 2. Non production of original vouchers: The following original vouchers amounting to Ti 01lsl wr not fu.rn,irkhedi.- t-ait In tha nhconrn oflthe nriuinal vncher-