WT4j:M qt7; ftrkwi - 4U q&ff h) INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT (CENTRAL), CHANDIGARH - 160017 fk-fq /Dated:30-6- 201r To The Director Cum Nodal Officer Hydrology Project Phase II, (10 Chandigarh. Subject:- Issue of Audit Certificate in respect of "World Bank Aided" Hydrology Project Phase II Loan No. 4749-IN ( Central Agency) for the year 2013-14. Sir I am to enclose an audit certificate in respect of "World Bank Aided" Hydrology Project Phase II Loan No. 4749-IN ( Central Agency) amounting to Rs. 502.39 lakh for the year 2013-14. With regards Sr. Au ' Officer Central Expenditure (V) iRTI fftfm 94-Iff, -Lekha Pariksha Bhawan, Sector 17-E, Chandigarh nf 172-2782020n 1W: 0172-q780n1 Tel i(nf \riinl7197Ynn- -- i-m Io - - 00- - T~mf U T& 0w -NTUT A-u 0,1 ck4i) M , INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT (CENTRAL), CHANDIGARH - 160017 ITN/No.. ft;Tj-N,/Dated: Audit Certificate The Expenditure Statement/ Financial Statement relating to the Hydrology Project Phase 11 Loan No. 4749-IN (Central agency) for the year 2013-14 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 conform that :- (a) the resources were used for the purpose of the project and (b) the Expenditure Statement/ Financial Statement are correct except that -. "Deposits received from Contractors on account of penalty on delay Rs.60.29 lakh includes a sum of Rs.56.88 lakh on account of deducted from the bill of the contractor in respect of license fee payable to INSAT for use of satellite as per the provisions of the agreement. This was wrongly classified as "Deposit received from contractors on account of penalty on delay" and needs to be corrected. " During the course of audit, the above statement of expenditure for Rs. 502.39 lakh was examined and the same amount can be relied upon to support reimbursement under the aforesaid loan/credit agreement. 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 test audit, it is certified that the Expenditure Statement/ Financial Statement read with the observations set out below represent true and fair view of the implementation and operation of the project for the year 2013-14. This certificate is issued without prejudice to the right of Comptroller and Auditor General of India to incorporate any further/ detailed observations if and when made in the report of Comptroller and Auditor General of India for being laid before the Parliament/State Legislature. Deputy Director pp 444 ii-, w(Lekha Pariksha Bhawan, Sector 17-E, Chandigarh -e: ------- TPI (Offl 0172-2782020 and (Fax) 0172-2782021 a Audit and Inspection Report on the accounts of the office of the Director Hydrology Project Phase H, Bhakra Beas Management Board (BBMB) for the year 2013-14. Part-1-A Introductory Audit and Inspection of the accounts of the office of the Director Hydrology Project Phase II, Bhakra Beas Management Board (BBMB) for the year 2013-14 was conducted by an audit party comprising of Sh. Neel Kamal, AAO under the supervision of Sh. Harish K. Aggarwal, Sr. Audit Officer from 12.06.2015 to 16.06.2015. Sh. G.S.Wason held the post of Director during the period covered under audit. Ministry of Water Resources (MoWR), Government of India (Gol) has initiated Hydrology Project Phase-II (HP-Il) with the help of the World Bank. Agreement for the HP-l between International Bank of Reconstruction and Development (IBRD) and Government of India was signed on 19.01.2006. The project has become effective from 5th April 2006. The duration of the project was six years initially and with extension is to close by 31.05.2014. The objectives of the project are to extend and promote the sustained and effective use of Hydrological Information System (HIS) by all potential users concerned with water resources planning and management, both in public and private sectors, thereby contributing to improved productivity and cost effectiveness of water related investments. The objective for the development of RT-DSS for operational management of its reservoirs is to support operational decisions well in advance for long term planning and also at shorter time intervals. Such decisions will relate to the scheduling of reservoir releases and running hydropower turbines, the operation of spillway gates, the issuance of flood warnings, and the deployment of area evacuation measures by Administrative authorities. RT-DSS will provide top management with a well structured, user friendly, practical and complete water resources management information system that will assist the decision-makers in taking the right decisions on the basis of good comparison of different strategies under various scenarios. 1T- DSS will be quite useful for priority ranking in master planning. It will provide necessary data & reports at the desired intervals, which will facilitate integrated reservoirs operation decisions from time to time and at short intervals for optimum utilization of water. Real time DSS will be useful for issuing advance flood warning for preparation of evacuation plan to eliminate/minimize the loss of lives and properties. It will also facilitate the management to assess the consequences of a set of choices at faster rate, which are direct function of time. It will also improve quality of decision making. Technical Consultancy was procured through the quality based selection process and the Contract Agreement was signed between BBMB & DHI Water Environment Health, Denmark on 14.11.2008. The procurement of Real Time Decision Support System (RTDSS) software and hardware has been initiated through National Competitive Bidding (NCB). For Data Acquisition System (DAS) BBMB has signed a contract with M/s Essel Shyam Technologies, Noida on dated 17.2.2012 through ICB for the "Supply & Installation of Real Time Meteorological & Hydro-meteorological Data Acquisition System For Real-Time Decision Support System of BBMB" for 91 stations. For Hardware Contract, BBMB has signed a contract with M/s Essel Shyam Technologies, Noida on dated 3.8.2012 for "Supply, Installation, Testing & Commissioning of Computers System". A Repeat Order for "Supply and Installation of 10 No. additional Real Time Automatic Water Level Recorders (Radar) System for Real -Time Decision Support System of BBMB" has been issued to M/s Essel Shyam Technologies Ltd. on dated 11.11.2013 after getting NOL. from World bank. The project was under progress as on 31.03.2014. The position of grant received and expenditure incurred during the last four years were as under :- (Rs. in lakh) Year Grant Received Expenditure incurred 2010-11 669.91 129.93 2011-12 Nil 421.23 2012-13 550.00 822.34 2013-1:4 694.74 50 2.39 Disclaimer This Inspection Report has been prepared on the basis of information furnished and records made available by the Audittee Office. The Office of the Principal Director of Audit (Central), Chandigarh disclaims any responsibility for misinformation and/or non-information on the part of the auditee. The results of present audit are embodied in the succeeding paragraphs: Part-I-B Review of old objections Audit & Inspection Report 2011-12 Para:2 Excess payment of Rs.28.13 lakh made to consultant on delayed deliverable of Hydrology Project-Il. Para Stands. Para 3 Non -availing of advertisement discount/ commission Rs.166352/-. Para proposed for dropping. Para 4 Unauthorised expenditure of Rs.3,04,372 of Hydrology Project-II Grant-in-Aid. Para proposed for dropping. Para 5 Irregular transfer of Indigo GLS-I1I Car CH-01 GI-2921 of HP-Il to BBMB valuing Rs.3 86310. Para proposed for dropping. Audit & Inspection Report 2012-13 Para-2 Purchase of spare parts of equipment of DAS- Rs. 97,01,346/- Para updated in the current Audit and Inspection Report. Para-3 Supply of detail of civil works of data measuring stations Rs.6,41,01,600/- Para proposed for dropping. Para-4 Supply of voucher/payment receipt of INSAT license fee: Rs. 55,30,000/- Para proposed for dropping. Para-5 Information regarding Personnel Requirement Charges of Rs.532500/- included in the Contract Para proposed for dropping. Para-6 Non crediting of Rs. 48,36,033/- to Final Head Para stands. Para-7 Information regarding imparting of training to BBMB staff under DAS payment made to supplier- Rs. 3,00,000/- Para proposed for dropping. Part - I -C Persistent Irregularities --Nil-- Part - I -D Non-Production of Records --Nil- Part -II- A Serious Irregularities NIL Part II B Other Irregularities Para 1 Non-conducting of physical verification of Fixed Assets Financial Management Manual Hydrology Project Phase II prescribed by Ministry of Water Resources and World Bank prescribes (Chapter 9 Para A.3.e) that the Physical verifications of Assets should be done periodically. Further, as per Rule 192 (1) of General Financial Rules applicable to the above project, Fixed assets should be verified at least once in a year and the outcome of the verification recorded in the corresponding register. Discrepancies, if any, shall be promptly investigated and brought to account. A scrutiny of records of the office of Director, Hydrology Project-Il revealed that the physical verification of the assets created out of funds have not done for the year 2013-14. No reply furnished by the office. Para 2 Purchase of spare parts of equipments of DAS : Rs. 9701346 Under the Data Acquisition System (DAS), pay of 10 percent was to be made in advance, 60 percent on inspection of material to be supplied and 30 percent on acceptance of material by the purchaser. The spares worth Rs. 9701346 as provided in the contract had been received upto 31.03.2013 and 70 percent payment thereagainst had been made upto 31.03.2014. After purchase, these spares were re-issued to the supplier. Some of the material re-issued was taken back in March 2015. However, the material costing Rs. 1526109 was still remaining with the supplier, against which an equivalent amount was deducted from the bills of the supplier and kept in Deposit account. Following observations are made in this regard- i. In terms of the Special Conditions of Service, the supplier was to furnish BBMB a complete program of delivery for the equipment and was also to provide revisions to this program as and when necessary. The contract was closed in September 2014 and the project was under a warranty period of two years i.e upto September 2016. The additional spares as above were to be used by BBMB after warranty period and therefore, acceptance of receipt/ purchase of additional spares as early as March 2013 was not justified in view of the anticipated spoilage of spare parts. ii. These spares were purchase under the issuance of the Custom Duty Exemption Certificate jointly issued by the BBMB and the Ministry of Water Resources and therefore, the value of the spares not returned by the supplier is more than the actual cost to the BBMB to the extent of custom duty exempted. Therefore, supplier needs to be either replenish the stock urgently or pay the applicable custom duty. The office in its reply stated that the firm is being asked to replenish the balance spares. Compliance would be awaited in audit. Part-III Test audit note No separate test audit note was issued, as all minor objections were settled during discussions. OFFICEO F THE A&CAO. BMBI cHANDIGARH OFFpCEditure incurred Statement of reconcile figures of RecP201 undereP- during the Financial Year 2013-2014 under HP-1 Amnount (Rupees) Sr' particulars of ReceiPt & No ExpenditUre 5s e a ar ce rece pt trr the ast eres'~~~ 5,3 ~hf~P 00 pen •f cncia 9 29 ireceived åurløg the Inan 4 ePrO01 3-2014 fro NOVR New Delhi otal re 7,75,55,89700 xpefdltu ~ ~~i drinlg the nnanlca E xpen "» year 2 a- 2,73,16,756.00 3a1fl a~ ans oss book 2 Sa i J 74 D,ferenlce if any 2Ó 2 A G iP 3d 3 2 5 000 C0 Totaý NiL3 Actual Derence Accounts OfficerMP 41 4cn OFFICE OF THE FA&CAO, BBMB, CHANDIGARH Statement of reconcile figures of Receipt & Expenditure incurred during the Financial Year 2013-2014 under HP-Il Sr. Particulars of Receipt & Amount (Rupees) No. Exenditure om_contracor_on_accoun 1 Unspent balance receipt from the last 6,85,976.00 financial year 2012-2013 2. Interest receipt during the financial year 7,4,292.00 2013-2014 on saving account 3. Miscellaneous receipts 17,150.00 4. Deposit received from contractor on account 60,29,455.00 of penalty on delay 5. Grant-in-Aid received during the financial 6,94,74,024.00 year 2013-2014 from MOWR, New Delhi 6. Total receipt during the financial year 7,75,55,897.00 7. Expenditure incurred during the financial 5,02,39,141.00 year 2013-2014 8. Closing balance as per cash book 12,73,16,756.00 9. Balance as per Bank pass book of Saving 3,96,47,496.00 - 1.Difference if any i) Advance payment to DAVP on 2,02,225.00 31.3.2014 ii) Temporary Imprest 5,000.00 iii) Unclear cheques 1,25,37,965.00 11. Total (9+10 (i)+(ii) -(iii)) 2,73,16,756.00 12. Actual Difference NIL Accounts OfficerlHP-I1 BBMB Chandigarh IIomre |jogu Code - BBMB Commulative Expenditure From Apr - 2013 to Mar - 2014 EXpenditure in 1 qpend iture in . . Fpendilturt in Rs i16 Rs A Institutional0 0 a) Civ il Works 455219 stittina 0 14 - streng,theninig i) Consolidation offiPI 21 Waes ltgible (4455219 ) Acetiv it ies ii) Axwareness. D)oids Disseininato ii and 0 an\Il. Knowledge Sha~rri ii) lnplemenlttuiont 0 Ie lpences 5 l 147 6 1,1 re i ,,,iiindoure 0 Su p l0 Support__________ ) t"'tel 208700 Ilgible ( 0 ) -Vertical F-xtensiton 50239141 I o Trle i -vn7el I l u 3666I L' 1) HlydIolo gical Desig n1 n5e 8 1 tot ( 66o Aids ~ý 1-01her Ad in () Higbl ( 3768 0i Decis ion Supporn IV ~0 ligtble 30973698 > '50068329 penses Systemns 1 Is iRelnt Rat & 56 l 004 3 L Purciucc 2 iii) Purpose Driven 1s 9 Studies iubl eat io n* 0 Hi-gible ( 2081808 ) C-Horizontal Expansion 0 lt1>w Prossionail i) Upgrad ing of Data Ners ice Olher 461 (>1 6| Gods Sub Total 39255773 1 prdn fDt Collection Network naaelualI Ser\ icc io) Upgrading of Data n u iel 1 IC,ltk ) Goods Total 11igilie ( 330555106 >rocess ing and 0 Miattaige ment belunerc & c) C onl2tat'0s e) 6 1 6 iii) Purpose Driven I m Services Stud tes i o; PLI1s 4100 gil(c 4610161) iv) Traiinn g 9 1 |9T24 i)Trning lo\ r \ h c leS 6924 1 Higible (0) 1 Pel ol I & 155020 e)Operating Costs 1917988 \1ajor \\ orks 0 EyAugtgiblc (1917988) \ltmr \Vork 4455219 Tiotal [ligible (44038874) Total 50239141 Total W29141 Total 50239141 Back Month/Vear R/C Total Fxpenditure Total Eligible 4/2013 0 0 2 5/2013 C 22885 22885 3 6/2013 C 864550 86450 4 7/2013 C 31270332 25582332 5 8/20/3 C 286453 286453 6 9/2013 C 113257 113257 7 10/2013 C 41444 41444 8 11/2013 C 3217756 2866301 9 12/2013 C 42396 42396 10 1/2014 C 52629 52629 11 2/2014 C 1965167 1965167 12 3/2014 R 13150372 12979560 TOTAL 50239141 /- 44038874/- Back nual Financial Statement Annexure-l Name of the Project: HYDROLOGY PROJECT, PHASE-Il IBRD Loan No. 4749-IN Statement of Sources and Application of Funds Name of the Central Agency: Bhakra Beas Management Board Report for the year ended on March' 2014 In Rs. O000 Particulars C-urrent Year Peiu Cummulative Pab la:Year till date 1i , I.e 2 3 4 Opening Balance, (if cash balances are controlled by the entity) (A) 686 22267 22953 0 Funds received from Government through Budget (This will include external assistance received 69474 55500 124974 ofor the Project through budget) 1366 817 2183 Depsit6029 4836 10865 Total Receipts (B)60653 137523 77556 82920 160476 Expenditures by Component A. Institutional Strengthening Consolidation of HPI Activities - Awareness, Dissemination and Knowledge Sharing - implementation Support Sub-total B. Vertical Extension - Hydrological Design Aids - Decision Support Systems -PurposeDie tde 50068 82234 132302 Sub-total 171 171 C. Horizontal Expansion - Upgrading of Data Collection NetNvork_______ - Upgrading of Data Processing and Management Systems - Purpose Driven Studies Sub-total Total Expenditures A 50239 82234 132473 686 _8 _0 Closing Balance, (if cash balances are controlled by the entity/LOC lapsed) (C-D) 1 7111 T_sj 80 CJr Project Direcitir-044al Off icer) A 1i ne fetinance Wing of BBMIB H 1U D3 - Datc;i"'- Notes: 1. Fund received from the Govt. wvill be the same as FExpenditure incurred. 2. Information about the basis of preparation'of financial statements for e.g. cash or modified cash basis, as per provisions of the GFRs or Departmental Manual etc. and significant accounting policies for e.g. treatment of advances, grants to communities etc.-- as per provisions of the Departmental Manual & GFR 3. Number of DDOs whose financial statements are aggregated to prepare uthe consolidated accounts-- Number of DDO is one. 4. a) Funds drawn against AC bills/transfers to deposit accounts, booked as expenditure during the year- 201 3- Rs. 60,29,455 2014 (b)total anmount Lfisculedunspent as on March 3 1.2014. Rs. 2,73,16,756 c)open- balance o! ot'AC bills/deposit account balance unsettled/unspent amount Rs... laklis-- Opening balance of of AC bills/deposit account balance unsettled/unspenit amount is Rs Nit. 5. Any offier project specific Note-- No æ C~ DCD ce x 00 00 = D N 0 c Ic CLa 0ý - m m( C o~L O'n m o xC e > -J m U) :t----- - - - Oz m C: C) O) -0 Qs × ;.n a o - meE U) 0 CO m 0 Ema c - 4 . z ._n o (5 C2 -u -&-((―。―----’了－-－→’ 一夢 タ。 Annual Financial Statement Annexure-1V Name of the Project: HYDROLOGY PROJECT, PHASE-11 IBRD Loan No: 4749-IN Name of the Central Agency: Bhakra Beas Management Board List of claims submitted to the Bank/ CAA&A Report for the year ended on 31st March' 2014 (In Rs'000) - e-rial Withdrawal Withdrawal Period to which SOEI Amount No. application /SOE application/SOE Date expenditure Documented Number pertains 1 1 12-12-2013 April 2013 to Sep SOE 26020 2013 2 2 19-03-2014 Oct. 2013 to Feb SOE 4618 2014 March 2014 to 3 3 04-04-2014 SOE 12476 March 2014 Sub-total for SOE Claims 43114 Sub-total for Doc Claims Grand Total 43114 V