AUDITOR'S REPORT Secretary Disaster Management and Relief Division Ministry of Food and Disaster Management Bangladesh Secretariat, Dhaka. I. We have audited the Financial Statement of the "Employment Generation Programme for the Poorest (EGPP)" Project financed under IDA Credit no. 4833 BD as of 30t June, 2014 and for the year then ended. The preparation of Financial Statement is the responsibility of Management. Our responsibility is to express an opinion on the Financial Statement based on our audit. This project has two components: i) Main Programme Component and ii) Operational Support Component. II. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall Financial Statement presentation. We believe that our audit provides a reasonable basis for our opinion. III. FAPAD is entrusted to conduct audit on the foreign aided projects only which are part of the Annual Development Program of the Govt. of Bangladesh. There is separate arrangement for maintenance of accounts and audit for non development expenditure of the Government which is done through preparation & certification of Appropriation Accounts & Finance accounts of the Government by the C&AG of Bangladesh. In Main Program Component of EGPP audit & accounts covers only non-development receipts and expenditures which do not follow the existing systems of accounts and audit practiced in Bangladesh. In spite of above non- compliance with the existing system audit is conducted by FAPAD under an interim arrangement and directives from OCAG to satisfy the needs of the Development Partner and the Government. IV. In our opinion, except non-compliance of financial rules and regulations in subsequent observations along with the management letter following the Financial Statement gives a fair view in all material aspects of the financial position of "Employment Generation Programme for the Poorest (EGPP)" of the financial position as of 30f June, 2014 and the results of its operations and cash flows for the year then ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. V. Opinion Status: UnqualifieL (Md. Sofiqur Rahman)Y Deputy Director for Director General Foreign Aided Projects Audit Directorate Tel: 9362190 Government of the people's Republic of Bangladesh M;nistry of Disaster Management & Relief Employment Generation Program for the Poorest (EGPP) Project Project (4833-BD) Financial Statement As on 30 June 2014 Figure in Lakh Taka Resources Notes* Cumulative Prior Current Period Cumulative Period Current Period Government of Bangladesh (MPC) 1 228,433.74 25,560.98 253,994.72 Government of Bangladesh (OSC) 28.46 22.16 50.62 A) Total GOB: 228,462.20 25,583.14 254,045.34 Ioan from Development Partner (MPC) 2 69,620.58 42,346.14 111,966.72 Loan from Development Partner (OSC) 2,843.44 1,251.60 4,095.04 A) Total IDA: 72,464.02 43,597.74 116,061.76 Other Resources (OSC)/Grant 3 300.26 - 300.26 Opening Cash Balance 4 - 751.62 - TOTAL RESOURCES 301,226.48 69,932.50 370,407.36 EXPENDITURE AND CASH A) Main Program Component: Wage Cost 267,877.59 60,704.47 328,582.06 Non Wage Cost 26,327.31 6,447.06 32,774.37 Sarder Cost 1,231.68 377.58 1,609.26 Administrative /Operational Cost 2,617.74 378.01 2,995.75 Total (MPC): 298,054.32 67,907.12 365,961.44 B) Operations Support Component: Officers Salary 28.46 15.02 43.48 S. StaffSaiary 912.22 635.91 1,548.13 Pay to Consultants 93.24 62.60 155.84 Operating Cost 571.66 959.60 1,531.26 Procurement of goods 814.90 92.59 907.49 Civil Works CD VAT/Advance Total (OSC): 2,420.48 1,765.72 4,186.20 Total Expenditure 300,474.80 69,672.84 370,147.64 Closing Cash Balances Imprest Account Operating Account (RPA) 751.68 259.66 259.72 Operating Account (GOB) _ _ _ Total Expenditure and Cash 301,226.48 69,932.50 370,407.36 NB: Financial Statement for Main Program Component(MPC) and Operations Support Component are also attached herewith. (Md. AbduQ.cdus) Additional Secretary & r;y Project Director Employment Generation Program for the Poorest (EGPP) Project NOTES TO THE FINANCIAL STATEMENT 30TH JUNE 2014 1. Governtment of Bangladesh Fund are allocated by the government of Bangladesh to run GOB's planned Employment generation Program , as specified in the project proforma and ;n annual Development Programme for each of the project. Any allocated funds that have not been expended by the end of a fiscal year lapse and must be returned to GOB. GOB contribution to the project since inception are as follow ( In Lac Taka) Particulars inception to 30th For the year Inception to 30th June June 2013 2013-14 2014 Disbursements by GOB (MPC) 250,379.42 27,723.12 278,102.54 Disbursements by GOB (OSC) 28.46 22.16 50.62 Total Disbursement by GOB 250,407.88 27,745.28 278,153.16 Less: Refunds to GOB/Lapses 21,945.68 2,162.14 24,107.82 Total 228,462.20 25,583.14 254,045.34 2. Loan from Development Partner: The International Development Agency IDA has provided funds to the project to cover it's share of eligible project expenditures. These funds, which must be repaid to International Development Agency (IDA) after the conclusion of the project, have been drawn by the project in accordance with the following withdrawal procedures ( In Lac Taka) Particulars Inception to 30th For the year Inception to 30th June June 2013 2013-14 2014 Initial Deposit ( Advance) Direct Payment -_- RPA (SOE Procedure) - - - RPA -OSC(Non SOE Procedureure) 2,843.44 1,251.60 4,095.04 RPA- MPC (Based on Disbursement Linked 69,620.58 42,346.14 111,966.72 Indicators) Total 72,464.02 43,597.74 116,061.76 3. Other resources Other resources consist of the following : Particulars Inception to 30th For the year Inception to 30th June June2013 2013-14 2014 Project Revenue-OSC {_2__ - 0.26 Grant OSC 300.00 - 300.00 Total 300.26 - 300.26 4. Cash There is no separate bank account for Main Program Component of the project. GOB allocates yearly fund from its own resources against the program. After expenditure, IDA re-imbursed prescheduled fund as per the Financing Agreement based on the Disbursement Linked Indicators directly to the Government Account (Bangladesh Bank Account No.4900). Two bank accounts (CONTASA) is mantained with Sonali Bank Main Branch, Dhaka to hold funds advarced by IDA for OSC Component and Grant fund. Year end unexpended cash balances were as follows ( In lac Takal: Particulars Inception to 30th For the year Inception to 30th June June 2013 2013-14 2014 imprest Account - Operating Account (RPA for OSC) 751.68 259.66 259.72 Operating Account (GOB) Total 751.68 259.66 259.72 (M AA Secreary 1 Additional Secretary & 'Vo Project Director Auditor's Report on Special Account. 01. We have audited the Special Accounts Statements of "Employment Genaration Programme for the Poorest (EGPP)" for the year ended 30t June/2014 financed under IDA Credit No-4833-BD. 02. Our audit was carried out following International Auditing Guidelines. Accordingly our audit included such review of systems of internal control, tests of accounting records and supporting documentation, verification of accounts balances and other auditing procedures that we considered necessary under the circumstances. 03. The accompanying Special Account Statements were prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above loan agreement. 04. In our opinion, reimbursements made by IDA are properly accounted for and withdrawals were made for the purpose of the project in accordance with the loan agreement. Opinion Status: Unqualhfied (Md. Sofiqur Rahman) Deputy Director for Director General Foreign Aided Projects Audit Directorate Tel: 9362190 Government of the people's Republic of Bangladesh Ministry of Disaster Management & Relief Employment Generation Program for the Poorest (EGPP) Project Special Account Statement (OSC) For year ending 30th June 2014 Account No. : SND 00236002926 and SND 000236003107 Depository Bank Sonali Bank Limited, Address Local Office, Dhaka. Related loan/Credit Agreement 4833-BD Currency BDT Part- A Account Activity BDT (LAC) Account No SND 236002926 SND236003107 Beginning balance( 01-07-2013) 467.97 283.65 Add Total amount deposited by World Bank 1,251.60 - Total interest earnings if deposited in account /Other deposit/Advance adjusted 0.06 Total amount refunded to cover ineligible expenditure _ Deducted Total amount withdrawan 1,579.47 164.10 Total service charges if not included in amount withdrawan Ending balance (30-06-2013) 140.16 119.55 Part- B Account Reconciliation: BDT (Lac) 1. Amount advanceed by World Bank _ 2. Less total amount recovered by World Bank- 3. Equals present outstanding amount advanced to the Special account - at fiscal year end (30-06-2014) 4. Ending balance of special Account at fiscal year ended 30-06-2014 - 5. Plus Amounts claimed and not yet credited at fiscal year end 30-6-2014 Application No. Amount 6. Plus amounts withdrawan and not yet claimed 7. Less interest earning (if included in special Account) 8. Plus service charges/IT deducted on interest(if not included in lines 5 and 6 above) - 9. Equals total advance to Special Account accounted for at fiscal year - (Md. Abduuddus) Project Director