OFF'ICE OF THE PRINCIPAL ACCOUNTAN GENERAL (A-DIT) ASSAM. BELTOLA. 1 GUWAHATI-781 029 ii: ..f.W .&/ AC -WB/NERLP/ 2017-18/ 660 R¶4: 18u01u2019 The Project Director, North East Rural Livelihoods Project, Regional Project Management Unit, Ministry of DONER, Govt. of India, House No.102, Dilip Huzuri Path P.O. - Assam Sachivalaya, Dispur Guwahati-781006 World Bank Aided-North East Rural Livelihoods Project (Credit No. 5035-IN)%Ff 2017-18 t 1Wibiff gqmw uft& #q t #Otw i 3fl7T T9 : PD/NERLP/2010-11/56/PT-II/469 fk9: 18.06.2018% t 3 2017-18 C w#Pi 3uwTS fR t r7f World Bank Aided-North East Rural Livelihoods Project (Credit No. 5035-IN) NqIqt 7Tm-- zftt Rft¶~ o I t1qM 49-T:I 11.t.t A OFFICE OF lTE PRINCIPAL ACCOUNTANT GElNERAL (ALIDIT) AI-SAN, BEILTOLA,- GLAVAllAI -781 029 No. FINAT/AC-WB/NERLP/2017-18/660 Date: 18.01.2019 To The Project Director, North East Rural Livelihoods Project, Regional Project Management Unit, Ministry of DONER, Govt. of India, House No.102, Dilip Huzuri Path P.0-Assam Sachivalaya, Dispur Guwahati-781006 Sub: Issue of Audit Certificate on World Bank Aided-North East Rural Livelihoods Project (Credit No. 5035-IN) for the year 2017-18. Ref: Letter No. PD/NERLP/2010-11/56/PT-11/469 dated 18.06.2018 Sir, With reference to the subject cited above, I am to forward herewith two copies of Audit Certificates on the expenditure incurred in respect of World Bank Assisted "North East Rural Livelihood Project" (Cr. No. 5035-IN) for the year 2017-18. This is for your information and necessary action please. Your's faithfully, Enclo: As stated above Audit Officer /FINAT AUDIT CERTIFICATE The Project Director, North East Rural Livelihoods Project Regional Project Management Unit, Ministry of DONER, Govt. of India House No. 2, Near Nayantara, Six Mile G.S. Road, Guwahati - 781022 Report on the Project Financial Statements We have audited the accompanying financial statements of the World Bank Assisted- North Last Rural Li%eliheods Project (Credit No. 5035-I) which comprise the Statement of Sources and Applications of Funds and the Reconciliation of Claims to Total Applications of Funds for the year ended 3 1.03.2018. These statements are the responsibility of the Project's management. Our responsibility to express an opinion on the accompanying financial statements based on our audit. We conducted our audit in accoi-dance with the Auditing Standards promulgated by the Comptroller & 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 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 flnancial statements present fairly, in all material respects, the sources and application of funds of North East Rural Livelihoods Project for the year ended 31.03.2018 in accordance with the Governiment of India accountitg 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 ineliahIbe expendiLures as detailed in the audit observations' appended to this audit reporn at Annexure- e\pnditurec are eligible for financing under Loan/Credit Agreement. During the course of the ui- SOE- F MRs (application No. PD/NERLP/2010-11/56/PT-II/469 dated 18.06.2018 and amoun A Z 163,02,32,214.00) and the concerned 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 relating to this project in the Report of CAG of India for being laid before Parliament /State or UT Legislature. (Padma Ear K ii,huiha) Deputy Accountant General/GS O/o the Principal Accountant General (Audit), Assam Beltola, Guwahati - 781029 Date : 18.01.2019 ANNEXURE BRIEF DESCRIPTION OF OBSERVATIONS RAISED DURING AUDIT OF WORLD BANK ASSISTED NOR I1I EkST RV RAL LIVELIHOOD PROJECT (Cr.No. 5035-IN) FOR I YEAR 2017-18 Si, Plr1 n. Particulars Amount involved A. Authority: Inspection Report of RPMU, Guwahati by the A.G. (Audit), Assam Pw- o : [IX: It H atdt lintld to V i Institulc 1 - 104. 19- TOTAL (A) 1, 07, 64, 066 B. Authority: Inspection Report of DPMU North Tripura by the A.G. (Audit), Tripura 3 nfruitful expenditure 1)?' i Suspected misappropriation It l Idle parking of money TOTAL (B) 2, 38, 24,000 C. Authority: Inspection Report of DPMU West Tripura by the A.G. (Audit), Tripura Para 1(A) of Part II B Suspected misappropriation Para 1B) o Part II B3 Suspected misappropriation Para 2 of Part II B Diversion of project component Para 3(B) of Part II B Idle parking of money meant for developmental activities - Para 5 of Part II B Wasteful expenditure on defunct Self-help groups TOTAL (C) 6, 64, 41,682 D. Authority: Inspection Report of DPMU Sepahijala District Tripura by the A.G. (Audit), Tripura Para I of Part 1lB iWastefill expenditure on defunct Self-help groups Para 2 B of Part 11 B Idle parking of money meant for developmental activities Para 3 ofPart 11 B Irregular payment for work 4,87,775 TOTAL (D) 75, 27,775 E. Authority: Inspection Report of DPMU UNAKOTI DISTRICT Tripura by the A.G. (Audit), Tripura Para I of Part II B Suspected misappropriation Para 2 of Part II B Unfruitful expenditure TOTAL (E) 49, 89,601 F. Authority: Inspection Report of Gyalshing, DPMU West Sikkim by the A.G. (Audit), Sikkim Para 1 of Part II B Improper utilisation of grant 4 54.2t3 Vls Para 2 of Part II Non - submission of Utilization Certificate [ _n tn unY Para 4 of Part 1I B Non deduction of Royalty 22,215 TOTAL (G) 5, 80, 42,215 G. Authority: Inspection Report of Jorthang, DPMU South Sikkim by the A.G. (Audit), ,Sikkim Para 3 of Part I B Non - submission of Utilization Certificate Para 4 of Part II B Non deduction of Royalty A TOTAL (H) 7, 45, 28,192 TOTAL (A+B+C+D+E+F+G) 24,61,17,531