AUDITOR'S REPORT Secretary Ministry of Agriculture, Bangladesh Secretariat, Dhaka. 1. We have audited the accompanying financial statement of the "NationalAgricultural Technology Project (NA TP) Phase-2" financed by IDA Credit No: 5665-BD, USAID Grant No. TF 0A0720 and IFAD Loan No. 2000000721 for the fiscal year 2016 2017. 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. II. We have 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 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. In our opinion, the financial statement gives a fair view in all material respects, of the financial position of "National Agricultural Technology Project (NA TP) Phase-2" as at 30 June 2017 and the results of its operations and its cash flow for the year 2016-2017 in accordance with the cash basis of accounting followed by the Govt. of Bangladesh. IV. Opinion Status: Unqualified. (Tanima Tanim) Deputy Director,Sec-06, for Director General Foreign Aided Projects Audit Directorate. Phone: 9331545. E:\AnnmAlSector-6\Audit Repot\2016-17\496-IDA-NATP (RAqui sir).doc- 8 - National Agricultural Technology Project (NATP) Phase-l IDA Credit No. 5665-BD Project Management!Jnit (PMU) BARC Complex, Farmgate, Dhaka-1 215. Project Financial Statement As on 30 June 2017 Taka in lac Resources Notes * Inception to 30 June for the year Inception to 30 June 2016 2016-17 2017 Government of Bangladesh* 1 - 1,608.98 1,608.98 Lender/Donor (IDA) 2 - 4,000.00 4,000.00 Lender/Donor (USAID) 700.00 700.00 Others Resources 3 - - Opening Cash Balance 4 TOTAL RESOURCES - 6,308,98 6,308.98 EXPENDITURE* & CASH 5 Pay & Allowances 5.1 492.94 492.94 Supply & services 5.2 - 3,881.44 3,881.44 Repair & Maintenance 5.3 - 65.42 65.42 Asset Acquisition 54 - 1,126.50 1,126.50 5.5 685.00 685.00 COVAT & Other Taxes 5.6 - Total Expenditure - 6,251.30 6,251.30 Closing Cash Balances 6 57,68 57.68 Account Current (CD VAT) __- DOSA Account (Bangladesh Bank) PIU's & PMU - 57.68 57.68 Project (NATP) Operating Account - Total Expenditure and Cash (BDT) - 6,308.98 6,308.98 (Shah Muhamm d sim) Project Director IV~ National Agricultural Technology Project (NATP) Phase-Il IDA Credit No. 5665-BD Project Management Unit (PMU) Notes to financial statements W As on 30 Jfn 2017 1, Governtment of Bangladesh Taka in lakh Particulars Inception to 30 June for the year Inception to 30 June 2016 2016-17 2017 Disbursements by GOB J 1,79 SQ 1,759.50 DAE 9 523.50 523.50 BARC - 42.00 42.00 DOF - 487.00 487.00 DLS 10 - 511.00 511.00 PMU 7 - 196.00 196.00 Less: Refunds to GOB 150.52 150.52 DAE 9 - 40.04 40.04 BARC - 0.01 0.01 DOF 38.81 38.81 DLS 10 45.03 45.03 PMU 7 26.63 26.63 Total . 1608,98 . 1,608.98 DAE - 483.46 483.46 BARC - 41.99 41.99 DOF 448.19 448.19 DLS - 465.97 465.97 PMU 7 - 169.37 169.37 2. Loan from Development Partner Taka in lakh Particulars Inception to 30 June for the year Inception to 30 June 2016 2016-17 2017 Direct Payment SOE Procedure (IDA) - 4,000.00 4,000.00 SOE Procedure (USAID) 700.00 700,00 Others (Opening Balance) Initial Fund Refund to WB 4,700.00 4,700.00 3. Other resources Taka in lakh Particulars Inception to 30 June for the year Inception to 30 June 2016 2016-17 2017 Project Revenue Exchange gainl(losses) - 0,00 Total 4, Cash (Opening Balance) Taka in lakh Particulars Inception to 30 June for the year Inception to 30 June 2016 2016-17 2017 (ash in and ~~~~~~~~~~---- ----.~..........~ ~ --"~~~ _r ORA Accoun - led Op_rajing Account nermina Account of Field stations 5. Total Expenditure Taka in lakh 5,1 Pay & Allowances 492.94 492.94 DAE 43.55 43.55 BARC 57.20 57,20 DOF 234.57 234.57 DLS 131.94 131.94 PMU - 2568 25.68 5,2 Supply & services 3,881,44 3,881.44 AE 1,627.61 1,627.61 BARC 20.63 20.63 00F 8 - 1,229.12 1,229.12 DLS - 987.85 987.85 IPMU 16.23 16.23 Taka In lakh 5.3 Repair & Maintenance 65.42 65.42 DAE 33.70 33,70 BARC 2.90 2.90 0OF 2.50 2.50 [LS 25.65 25.65 PMU 0S7 0.67 5.4 Asset Acquisition 1126.50 1,126.50 DAE 388.37 388.37 BARC 4.04 4.04 DOF 244.99 244.99 DIS _335.36 335.36 PCU 15374 153.74 5.5 Research 685.00 685,00 BARC 685,00 685.00 5.6 CDVAT DAE . _ 0 BARC 0 DOF 0 DLS --0 PCU 0.00 6, Closing Balance Project Operating AIC No. (PMU & PfUs): 57.68 57,68 DAE 0.23 0.23 BARC 11.78 11.78 DOF 6.45 6.45 DLS 0.17 0.17 ---PMU(OGperatinq Accont---- 19,69 19.69 PMU(DA): A ._4.36 4.36 USAID 15.00 15.00 Project Account___________ (Shah Muhamm d i roject irector NATP-2, PMU AUDITOR'S REPORT ON CONTASA ACCOUNT. 1. We have audited the accompanying Statements of CONTASA account of the "National Agricultural Technology Project (NATP) Phase-2" Financed by IDA Credit No: 5665-BD, USAID Grant No. TF 0A0720 and IFAD Loan No. 2000000721 for the fiscal year 2016-2017. The preparation of Special Account Statement are the responsibility of management. Our responsibility is to express an opinion on the Special Account Statement based on our audit. 2. We conducted our audit in accordance with International Organization of Supreme Audit Institutions (INTOSAI) Auditing Standards and Government Auditing Standards. These standards require that we plan and conduct the audit to provide reasonable assurance that the Special Accounts are free of material misstatements. An audit includes verifying the Special Accounts with accounting records, supporting documents and physical inspection of the work carried out, the goods and services acquired, and with the Credit Agreement. We believe that our audit provides a reasonable basis for our opinion. 3. In our opinion, the Special Account Statement (attached schedules) give a true and fair view of the account activity for the year 2016-2017on the basis of cash deposits and withdrawals. (Tanina Tanim) Deputy Director, Sec-06, for Director General Foreign Aided Projects Audit Directorate, Phone: 9331545. EAAnnan\Sector-6\Audit Report\2016-17\496-IDA-NATP (Rafiqul sir).doc- 22 - AUDIT OPINION ON SOE We have audited the accompanying Statements of Expenditures (SOEs) of the "National Agricultural Technology Project (NATP) Phase-I" Financed by IDA under Credit No. 4386-739-BD for the year 2014-2015. The claim on the basis of SOEs are the responsibility of management. Our responsibility is to express an opinion on the SOEs based on our audit, We conducted our audit in accordance with International Organization of Supreme Audit Institutions (INTOSAI), Auditing Standards and Government Auditing Standards. These Standards require that we plan and conduct the audit to provide reasonable assurance that the SOEs are free of material misstatements. The audit includes verifying the SOEs with the accounting records, supporting documents, and physical inspection of the work carried out, the goods and services acquired and with the Credit Agreement. We believe that our audit provides a reasonable basis for our opinion. In our opinion, with regard to the SOEs, adequate supporting documents have been maintained to support the claims to IDA for reimbursement of the expenditures incurred and that the expenditures are eligible for financing under the Credit Agreement. WITHDRAWAL/SOE PARTICULARS i) The particulars of withdrawal on the basis of statement of expenditure (SOE) as submitted to the audit team are shown in the enclosed statement (Attached). ii) The presentation and submission of claim to IDA by the project authority on the basis of SOE was valid and supported documents. (Tanima Tanim) Deputy Director, Sec-06, for Director General Foreign Aided Projects Audit Directorate. Phone: 9331545. E:\A,nnan\Secor-6\Audit Report\2016-17V196-lDA-NATP (Rafiquil sir).doc- 23 - INTERNAL CONTROL 01. The project is being implemented by deputed and appointed personnel by the project authority as per DPP. 02. The project activities were executed as per PPR-2008, PIM-1,2,3 and PAD of IDA also as per the guidelines of the World Bank and Bangladesh Govt. Rules. 03. Expenditures were incurred by the project authority after obtaining sanction for the competent authority and following rules and regulations both GOB and IDA which are mentioned in the management letter under section-II of this report. 04. As per DPP, office equipments and other assets were procured for the project activities. But inventory of assets were maintained properly. OPINION In our opinion, except as discussed in the section-I of this report, the Statement of Expenditure (SOE) submitted can be relied upon, to support the Applications for credit disbursement by the IDA against expenditure incurred for the purpose of the project as specified in the particulars of withdrawals application. (Tanima Tanim) Deputy Director, Sec-06, for Director General Foreign Aided Projects Audit Directorate. Phone: 9331545. E:\Annw\Sector-6\Audit Report\2016-171496-IDA-NATP (Rafiqul sir).doc- 24 -