Government of Nepal Phone: 421169: MINISTRY OF WATER SUPPLY Fax : 977 -1-421143i Singhadurbar, Kathmandu, Nepal Ref.No.i 23 4 o7ef41 Date: March 19,2020 Mr. Feriha Mugisha Task Team Leader I nternationa I Development Association The World Bank Nepal Country Office Laldurbar, Kathmandu. Ref.: Rural Water Supplv and Sanitation lmprovement proiect (RWSS|p) (lDA Credit 5446-NP and tDA Grant H945-Np): Submission of Audited Proiect Accounts of Fy 201gl19. Dear Mr. Feriha, Thank you for your letter dated March 5,2020 regarding the comments on the unaudited project accounts of PMU component. We have reviewed the comments and adjusted it accordingly in the attached Audited Project accounts. Please find attached herewith the Audited Project Financial Reports for your kind nformation and "necessa ry actions. i Regards, (Ramakanta Duwadi) Project Director Project Management Unit Ministry of Water Supply CC: Ministry of Finance, Singhadurbar, Kathmandu Financial comptroller General office, Anamnagar, Katmandu: copy attached Phone:425AL74 4266034 Office of the,Auditor General 4255707 A.G. Fax : 977 -L-42683O9 Fax:977-t-4262798 RefNo: 2075176-lE]1 Post Box : 13328 Tdt({6q, +rarne1, iqrc Babar Mahal, Kathmandu, Nepal The Secretary Ministry of Finance Date: 15 March-2020 Singhdurbar, Kathmandu Report on the Financial Statements We have audited the accompanying Project Financial Statements including Statement of Advance account and Statements of Expenditures (SOEs) of the " Rural Water Supply and Sanitation fmprovement Project Component 2: 't frnanced by IDA Credit 5446 -NP u"A fba Grant H945 - I\P asat 16 July 2019 (31Ashad,2076)and, fortheyearthen ended and a summary of accounting policies and other explanatory notes. Management's Responsibility for f inancial Statements Management is responsible for the preparation and fair presentation of the Financial Statements In accordance with the Government of Nepal (GON) accounting policies and relevant practices. This responsibility includes:- designing, implementing and maintiining internal control relevant to preparation and fair presentation of project financial statements that are free from material misstatement, whether due to fraud and error. Auditor's Responsibility Our responsibility is to express an opinion on these Project Financial Statements based on our audit. We conducted our audit in accordance with the INTOSAI (Internation alOrganization of Supreme Audit Institutions Fundamental Auditing Principtes. Those Principles require ttrut *" plan and^perform the audit to Obtain reasonable assurance about whether the hnancial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements' The procedures selected depend on the auditor's judgment, including the assessmenf o{the rr's(s ofmateria(misstatement of the frnancial statements, whJther due to fraud or error. ln making those risk assessments, the auditot considers irterna\ c,ontro\ re\evarrt to the entiry's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing u, olirio, o, tt effectiveness of the entrfy/s internal contro(. An audit atso inc,tudes evaturiing the apprspriats$ess "of accourtirrg policies used and the reasonableness of accounting estimates made ty evaluating the overall presentation of the financial statements. -*ug"ment, as well as We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion Management letter highlighting areas for improving financial management is attached herewith. In our opinion, the Project Financial Statementi including Statement of Advance Account and Statements of Expenditures (SoEs) in all material respects, gru, , true and fair view of the financial position of the" Rural Water Supply and Sanitationimpro:vement project Component 2: District Level Institutional Strengthen ing tt financed under IDA Credit 5446 -Np and IDA Grant 1.,945 - NP as of 16 July 2019 (31 Ashad, 2076), and of the results of its operations and its cash flows for the year then ended in accordance with GON accounting policies. We also rcportthatfunds provid ed under IDA Credit 5446 -NP and IDA Grant H945- NP has been utilized forlntended purposes. 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CB rFl & & .l .- g) d I (J o tl t4 Government of Nepal Ministry of Water Supply and Sanitation Rural water supply and sanitation lmprovement project Proj ect Management Unit Disbursement Sheet Period: 1st.Shanruan,2075 .unarwan to 31 Asar 2076 ( 16 J 2018 to 16 2019 Particulars Particulars Value Date USD SDR Credit:IDA 5446-NP Previous Year 907,919.25 646,052.17 PMU CR 11 21-Sep-2018 144,460.77 102,909.08 PMU CR 10 28-Aug-2018 294,521.95 209,999.77 PMU CR 08 06-Aug-2018 209,463.44 150,159.46 PMU CR 09 27-lul-2018 125,531.42 89,630.73 Total for this Year 773,977.49 552,597.04 Cumulative Total 1,691,995.73 l,lgg,639.2l Grant: IDA H945-NP Previous Year 567,193.54 403,924.04 PMU GR 11 21-Sep-2018 160,837.41 114,462.90 PMU GR 10 28-Aug-2018 r32,319.39 94,34r.34 PMU GR 08 06-Aug-2018 94,102.59 67,459.96 PMU GR 09 24-Jul-2018 59,664.22 42,465.64 Total for this Year 446,923.6t 3t9,729.74 Cumulative Total 1,014,,107.15 722,653.79 D w---- -/' -/ ^ Bishnu Prasad Gyawali € Ramakanta Duwadi Undersecretary Joint Secretary MOWS MOWS Final Audited KEAI{BPAIII SARSAFAI !'A!grRl' KEANEPANI TATEA SARSAIAI MAI{TRAI,AYA SXNGEDARBAA, TATEUANDI' gTATEUENT OP ACCOUNT ISATt 09.08.76 CI'RRANT ACCOUNT NUI.IBBR ; 120{550/001,004.840 KEA 4 SPECIAIJ DEBT ACCOI]NT IN SNITED STATAS DOII]ARS ISSI'ED ON 09.08.75 PAGB 3 1 DATE DESCRIPITON VAf,g8 DATA DEBTT CREDIE BAI,A!ICE REF. OPEIfING BAIAI{CB PER : 01.04"76 277.43L,96 BAI,ATCB IN YOOR 277 .43L,96 '}VOSR I pAS;*"tr, ,,' FKlr-N:6 offo*- u:, uo,i, -'-" +tr \\'./S. .,:'.. #.#*riitr-l-,,r:. *" . ffidtat{8