DEPARTMENT OF PUBLIC ACCOUNTS MINISTRY OF FINANCE DMD/WB/TF014705 BHU/2015/ Date Ms. Genevieve Boyreau Resident Representative World Bank Bhutan Office Thimphu. Sub: Forwarding of Audit Report. Madam, Please find enclosed herewith two copies of Audit Report on the Accounts and operation of the World Bank Project Grant No. TF014705-BHU "Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management", Implemented by Bhutan Trust Fund for Environmental Conservation, Thimphu, for the period from 01/07/2013 to 21/06/2014 onward submission to the World Bank. Kindly acknowledge the receipt. Yo incerely, (Lha ay Dy. Chief Prog Officer THIMPHU: BHUTAN, Post Box No. 270, Phone: PABX 322604 / 322641 / 322951, Fax: 334994 Reotn aA A Ecoom . iiny6Efcivns nteueofPbi eore AIN: 12637 AUDIT REPORT ON THE ACCOUNTS AND OPERATIONS OF THE WORLD BANK GRANT NO. TF014705 (P127490) "GRANT FOR SUSTAINABLE FINANCING FOR BIODIVERSITY CONSERVATION AND NATURAL RESOURCE MANAGEMENT" IMPLEMENTED BY BHUTAN TRUST FUND FOR ENVIRONMENTAL CONSERVATION, THIMPHU PERIOD: 01.07.2013 TO 30.06.2014 JANUARY 2015 L ROYAL AUDIT AUTHORITY RAA Bhutan Integrity Yfouse Reporting on Economy, Efficiency S Effectiveness in the use of Public Resfurces RAA/GGD/A BTFEC(World Bank)/2014/ Date: The Director General Department of Public Accounts Ministry of Finance Thimphu Subject: Audit Report on the Accounts and Operations of the World Bank funded Project "Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management" implemented by the Bhutan Trust Fund for Environmental Conservation, Thimphu for the period 01.07.2013 to 30.06.2014 Sir, Enclosed herewith please find three sets of the audited Financial Statements and auditors' report thereon in respect of the World Bank funded Project "Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management", implemented by the Bhutan Trust Fund for Environmental Conservation (BTFEC), for the period 01.07.2013 to 30.06.2014. The audit was conducted as required under the Audit Act of Bhutan 2006. Two sets of the audited financial statements and auditor's report may please be forwarded to the IDA, Head Office, 1818 H Street N.W, Washington D.C. 20433, USA. Auditors' Report on the Financial Statements As may be noted from the Auditor's Report, the Project had generally maintained proper books of accounts, and the financial statements were in agreement with the accounting records. Accordingly, the RAA has issued unmodified (clean) report. The RAA acknowledges the kind co-operation and assistance extended to the audit team by the officials and staff members of the Project, which facilitated the timely completion of the audit. Yours sincerely, (Chimi Dorji) Assistant Auditor General General Governance Division Ev eindividual mu1st s0ive to he pinmcipled And individuals il posilions of responsidity mvivt even vrivehArder -1/is Wajestv the Kin Jigni Khes, Aamgvel Wiangchwk P.O. Box: 191, Kawajangsa, Thimphu: Bhutan. Tel: 322111 / 322833, Fax: 323491 Website: www.bhutanaudit.gov.bt Email: info ( bhutanaudi.gov.bt Copy to: 1. The Secretary, Ministry of Finance, Tashichho Dzong, Thimphu 2. The Project Manager, "Grant for Sustainable Financing for Biodiversity Conservation and Natural Resources Management", BTFEC, Thimphu 3. The Acting Chief Finance Officer, BTFEC, Thimphu 4. The AAG, PP & AARD, RAA, Thimphu 5. The AAG, FUCD, RAA, Thimphu 6. Office Copy 7. Guard file L F L L TITLE SHEET 1. Title : Audit Report on the accounts and operations of World Bank Grant No. TF014705 (P127490) "Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management" 2. Implementing Agency : Bhutan Trust Fund for Environmental Conservation, Thimphu 3. Project Manager : Dr. Pema Choephyel, Director (CID No. 10709002672) 4, Drawing & Disbursement Officer : Dr. Pema Choephyel, Director (CID No. 10709002672) 5, Finance Personnel : (i) Singye Dorji, Chief Financial Officer (CID No. 11601002881) : (ii)Yeshey Peldon, Asstt. Finance Officer : (CID No. 11001001397) 6. Period of Audit : 01.01.2013 to 31.12.2013 (Retroactive) 01.07.2013 to 30.06.2014 7. Schedule of Audit : Adhoc Actual field: 23/12/2014 to 01/01/2015 8, Intimation letter No. : RAA/GGD/2014/3345 dated 22/12/2014 9. Audit Team ' Samdrup Dolma, Asstt. Audit Officer Team Leader, EID No. 201001056 Pema Jamtsho Tamang, Team Member EID No. 2107096 10. Supervising Officer : Chimi Dorji, Asstt. Auditor General (EID No.9610060) 11. Date of Exit Conference : Not Conducted 12. Focal Person : Samdrup Dolma Disclaimer Note The coverage of this report is based on the facts, figures and information made available. and accessible to the team by the World Bank funded project 'Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management', implemented by BTFEC. The opinion of the auditors shall only confine to the period covered and information made available till the time of issue of this report. This is also to certify that the auditors during the audit had neither yielded to any pressure, nor dispensed any favour or resorted to any unethical means that would be considered as violation of the Royal Audit Authority's Oath of Good Conduct, Ethics and Secrecy of Auditors. ACRONYMS AAG Assistant Auditor General BTFEC Bhutan Trust Fund for Environmental Conservation CID Citizenship Identity Number EID No Employee Identity Number FUCD Follow-up and Clearance Division GGD General Governance Division IDA Internal Development Assistance MoF Ministry of Finance PP & AARD Policy Planning & Annual Audit Report Division RAA Royal Audit Authority RGoB Royal Government of Bhutan SoE Statement of Expenditures TABLE OF CONTENT AUDITORS' REPORT ON [HE FINANCIAL STATEMENTS OF THE NN ORLD BANK FUNDED PROJECT "GRANT FOR SUSTAINABLE FINANCING FOR BIODIVERSITY CONSERVATION AND NATURAL RESOURCE MANAGEMENT" IMPLEMENTED BY THE BH1UTAN TRUST FUND FOR ENVIRONMENTAL CONSERVATION, THIMPHU FOR THE PERIOD 01.07.2013 to 30.06.2014..........................................................................1 1 EXHIBITS: Statement of Sources and Uses ofFunds for the period 01.01.2014 to 30.06.2014............Exhibit - I Statements of Uses ofFunds and Projections by Project Activities for the period the period 01.01.2014 to 30.062014............................ ................ . ........Exhibit - I DA Advance Account Reconciliation Statement and Cash Projection for the period 01. 01.2014 to 3 0.06.2014......... ........................... .............Exhibit - III i Statement of Half Yearly Releases/Expenditures for Grantee Institutions 1 for the period 01.01.2014 to 30.06.2014.................................................................................Exhibit- IV D esignated Bank Account Statement.................................. .............. .......................Exhibit - V Special Bank Account Statement.................. .................................................................Exhibit VI Statement ofSources and Uses ofFunds (Retroactive Financing) for the period 01.01.2013 to 30.062013.......................... ............ ............... ...... .Exhibit-VII Statements of Uses ofFunds and Projections by Project Activities (Retroactive Financing) for the period 01.01.2013 to 30.06.2013................................. ......... ........ ........ .......Exhibit-VIII Statement ofHalf Yearly Releases/Expenditures for Grantee Institutions (Retroactive Financing) I for the period 01.01.2013 to 30.06.2013 ................................. . ........................... . ......Exhibit -IX Statement of Sources and Uses of Funds (Retroactive Financing) for the period 01.07.2013 to 31.12.2013 .......................................................................Exhibit -X Statements of uses offunds and Projections by Project Activities (Retroactive Financing) for the period 01. 07.2013 to 31.12.2013 .........................................................Exhibit -Xl Statement ofHalfyearly Releases/Expenditures for Grantee Institutions for the period 01.07.2013 to 31,12.2013................................... ...... ...... ..................Exhibit- II APPENDICES: 1. Profile ... ... ... ... ... ... ... ...... .............. ... ... ... ... ... ... .. ... ......Annexure - A 2. Objectives ofAuditing... ... . ... ... ... ... ... .......... .. ... ... ... ... ... ... ... ... .. .........Annexure - B 3. A udit M ethodology ... ... ... ... ... ... ... . . ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...A nnexure - C r AUDITORS' REPORT ON THE FINANCIAL STATEMENTS L AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OF THE WORLD BANK FUNDED PROJECT "GRANT FOR SUSTAINABLE FINANCING FOR BIODIVERSITY CONSERVATION AND NATURAL RESOURCE MANAGEMENT" IMPLEMENTED BY THE BHUTAN TRUST FUND FOR ENVIRONMENTAL CONSERVATION, THIMPHU FOR THE FINANCIAL YEAR ENDED JUNE 30 2014 Introductory Paragraph The Royal Audit Authority (RAA) has audited the accompanying financial statements, [Sources and Uses of Fund] and the accompanying notes to the financial statements, set out on page [1] to page [5] of the World Bank project "Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management" financed under World Bank Grant No. TF014705 (P127490) as of June 30, 2014 for the year then ended. The RAA's responsibility is to express an opinion on these financial statements based on its audit. Scope Paragraph The RAA conducted the audit in accordance with the RAA Auditing Standards, Generally Accepted Auditing Standards and World Bank Guidelines. Those Standards and/or World Bank Guidelines require that the RAA plan and perform audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. The RAA believes that the audit provides a reasonable basis for its opinion. Opinion Paragraph In RAA's opinion, the Project financial statements present fairly in all material respects the Sources and Uses of Funds of the "Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management" project for the year ended June 30, 2014 in accordance with the Public Finance Act of Bhutan 2007, Interim Grant Implementation Hand Book and Operations Manual 2010 of Bhutan Trust Fund. The RAA also reports that: (a) The retroactive financing for the period 01.01.2013 to 31.12.2013 has been audited; (b) Under Component II of the project - Improving Conservation Management of the High Altitude Northern Areas (HANAs) landscape in Bhutan (Including protected areas and associated methods, forests and agricultural system), only funds disbursed to the implementing agency and the expenditure reported to the BTFEC could be verified; 2:I (c) The funds provided under the Grant No. TF014705 (P127490) have been utilized for the purposes for which they were provided; (d) The Financial Management Reports submitted could be fairly relied upon to support the applications for withdrawals in accordance with the requirements specified in the Grant Agreement; (e) With respect to Statement of Expenditure (SOEs) adequate supporting documents were maintained to support claims for reimbursements of expenditures incurred; and (f) All expenditures reported and claimed are eligible for financing under the Grant Agreement No. TFO 14705 (P127490). 7£ Auditor Concurred and noted: Assistant Auditor General Dated: k r 2U E ENCLOSURES c 9 rhib; k Annex-1: Statement of Sources and Uses of Fund Bhutan Trust Fund for Environmental Conservation Sustainable Financing for Biodiversity Conservation and Natural Resources Management Project GEF Grant No.TF014705 Statement of Sources and Uses of Funds 6 months period Fiscal Year 2013-2014 Amounts in Nu. IUFR - 1 6 months This Year Total Project Period A. Opening balance 1. DPA Designated Account 2. BTFEC Special account 3. Advances to GIs 4. Advances to contractors / vendors by BTFEC B. Sources of Funds 1. Funds disbursed by Bank to the DA 58,613,000.00 58,613,000.00 58,613,000.00 2. Others Total Source of Funds 58,613,000.00 58,613,000.00 58,613,000.00 C. Uses of funds by Category 1. Expenditures by BTFEC 3,127,889.29 3,127,889,29 3.127,889.29 2. Expenditures by GIs 15, 194,607.21 15,194,607. 1 15-194,607.21 Total Fund Use 18,322,496.50 18,322,496.50 18,322,496.50 D. Net Change (A+B-C) 40,290,503.50 40,290,503.50 40,290,503.50 E. Closing Balances 1. DPA Designated Account 1,000.00 1,000.00 1,000.00 2. BTFEC Special account 28,353,608.10 28,353,608.10 28,353,608.10 3. Advances to GIs 11,262,774.79 11,262,774.79 11,262,774.79 4. Advances to contractors / vendors by BTFEC 67,014.61 67,014.61 67,014.61 5. Retroactive Disbursement with DPA 1,202,000.00 1,202,000.00 6. Cheques issued but not presented to Bank (595,894.00) (595,894.00) (595,894.00 Total Closing Balances 40,290,503.50 40,290,503.50 39,088,503.50 Prepared by: Approved by: Date: Annes2: StaIernenl.I I .e,rF 0els. &9 Prejeie by Project Aeli,i Interm Unaudlited Finanlcial Ro lrt Bhutan Trust Fund for Environmental Conservation Sustainable FinAncing for B-odiversity Conservtion and NAtural Resonres Managemeni Prøj et GEF Grant N.TF014705 Statementrel F Projeionsb Pr tandsoape i. Bhutan (including p"oeted oas, and 135,000,000 15,62,365 15,062,365 15,062,365 29,960,100 26,580,800 56,540,900 associated mehod, f,oet1 and agricuttur,J ,,ytem)forest, and agriclturalI ' -iol RescureVmgemoentr i. thc Sigh1nds for S.sto,r.ele _ Naesihoud o re Ma nagemtinheia f e 15,000,000 Cat,egor-2 5 96. 03 5 96.103 5,196,103 3,934M1 N26,1N"i 4,760,500 Lyvelihood and GCen Economy(MBW128Y13) Enhane:ng 'Management Efficency of Bumdelng Wildl:fe 2 Sanctary -rough ltert,ed & Par:ic,patorv 15.000,000 fu1gors-2 2,7.9.625 2.719.625 2,719,625 2,523.1K 2,1311 4,664,400 ApprocCNMB.39Y'14) Enrhance Effic:ency ord lIrratoe Manaeentr of Wangchuck 3 Enzne MBý 442Y4n 15,000,000 CoIg"rn2 C934.021 1934.021 1,934,021 S,901,0 3,705,1A 11,895,000 centernia! Pa'k(MB014.0Y14) Seng,e., g resorce mo Pring parollg a n serv ic 15,000,000 Caig;,, 86764, 2.867.646 2,67,646 71mo 100,0l 7,440,000 delive:v, of j:ere Do,: Nationaol Park1MB20138Y14) Rev:-L Degraded Ran_eeans in :he Northern Fon::er re SLM :echnologtes ,r,s Ya.< Ilerdg 15,000,000 2.lgn 2 344 97: -<3 97 2J44,971 570.,M 1,316,mo 7,096,000 [:ega'ed oernity baseI eceoc,r:sn,, program in Kn-- 15,000,000 Ioregor 1,77,i4g 2,m,n 4,554,000 Sos:a .e ronagcerr etreso n.ees ::sde JDNP ihrough 7 nntergrated paricipa:or.s of comme:,es and other key 15,000,000 Ue.ory-2 4,349,61 4,45mo 8,690,000 Enhance ParS Blod:vers:ty daanbase for iormed decison 15000,000 -2 2,470,m L00,51m 4,94,000 making :0wands Dpwk commni[vf eodWP 9 Biodiverýsity Cense.vation and Ssanbeuse in HANAs(NBC) 15,000,1>00 Cnieg',r72 2Oli'mi 2,500,00M au ru.d 27,720,00 12,242 132,242 132,242 1890 00 1,260,000 3,150,000 p[..s t Pdeknes 21,000 I 0 ,260,000 So0 tethnie capaeinty for i.mplemnMtion a f polic:C s 3 H g ov exchange prona 7,560,000 : 632.000 1,260,000 4Expeenc sharmg wo ksops 1,890.000 C- n2- 5 Stakelders meetings for maosremog coservmr on pee8es I,090.000 conR-en2 32,242 32.242 132,242 6. Local com nityr corrssoion 7,560,000 :6 630,000 630.000 7 Prn,ng and nrass ésrrbon ofpo v doe-~ns 3,150,000 ne - 3Ceorngreoc.es 630000 wr1eø2.. -_____ ____________ To.l 213,12.1A00 18,322,497 18,322,497 L8.322,497 41,898,600 37.542.i00 79.441,400 CloeegoS wise breakup Prep. . .by Annex-3: Designated Account (DA) Reconciliaiton Statement & Cash Projection Interim Unaudited Financial Report IUFR-3 Bhutan Trust Fund for Environmental Conservation Sustainable Financing for Biodiversity Conservation and Natural Resources Management Project GEF Grant No.TF014705 DA Advance Account Reconciliation Statement & Cash Projection Currency of Advance Account: Ngultrums 6 months - Fiscal Year 2013-2014 PART I Nu Cumulative advances to end of current reporting period in Designated Account (refer Client Connection) 58,613,000.00 2 Cumulative expenditures to end of last reporting period - reported to the Bank 000 (refer Client Connection) 3 Outstanding Advance to be accounted (line I minus line 2) - (refer Client 3 58,613,00000 Connection) PART II Closing balance in Designated Account bank statement at end of current 1,000.00 4 reporting period (as per DA bank statement) 5 Expenditures for current reporting period 18,322,496.50 6 Balance with BTFEC Special Account 28,353,608.10 7 Advances to Gis 11,262,774.79 8 Advance to Contractors/Vendors by BTFEC for Component 1 & 3 67,014.61 8a Amount to be recieved from DPA 1,202,000.00 9 Add Line 4 to line 8 59,208,894.00 10 Difference (if any) (line 3 minus line 9) -595,894.00 PART III_ 11 Total amount to be paid by World Bank (as per forecast in IUFR 2) 79,441,400.00 12 DA Closing advance balance at the end of current reporting period (same as 1,000.00 SLine 4) 13 Balance with BTFEC Special Account 28,353,608.10 14 Advances to GIs 11,262,774.79 15 Advance to Contractors/Vendors by BTFEC for Component 1 & 3 67,014.61 16 Total of Line 12 to Line 15 39,684,397.50 17 Cash requirement from World Bank for next two reporting periods (line 11 39,757,002.50 minus line 16) Note: Difference of Nu 95,894 in the bank balance isfrom cheques i sued but no resented to the Ban - 。料 〝 〕’喲、〔 〔 Exhi bit --.T BANK OF BHUTAN Branch: THIMPHU Account Statement From 01-jan-2014 To 31-jul-2014 AccountNumle,: 21100221111371018 OLD AC 2011022010"11001 12-AUG-2014 TF010597GRANT FOR PREPARATION SUSTAINABLE FINANCINC Page I of 1 SUSTAINABLE FINANCING FOR,BIODIVERSITY CONSERVATION, DPA Date Reference Number Withdrawals Deposits Balance Opening Balance 1000.00 1000.00 Totals 1000.00 Closing Balance 1000.00 NOTE:- DEBIT BALANCE UNLESS A CONSTITUENT NOTIFIES THE BANK IMMEDIATELY OF ANY DISCREPANCY FOUND BY HIM]HER IN HIS/HER STATEMENT OF ACCOUNT IT WILL BE TAKEN THAT HFJSHE FOUND THE ACCOUNT CORRECT THIS IS A COMPUTERISED STATEMENT AND MAY NOT REQUJRE SIGNATURE BHUTAN NATIONAL BANK LIMITED Account Activity as of 05-01-2015 12:26:16 GMT +0600 ccun t Nrnber Customer Id Account Currency Opening Balance olosing Balan 000006&92C016 000066928 BTN 1,118,215.00 28,353,608.10| 23-Jan-2014 23-Jan-2014 0001440140230001 BOB-P-23,01.14,B#134 16,670.00 Ref. 906781 23-Jan-2014 23-Jan-2014 0001440140230002 BOB-P-23.01.14,B#1 33 340.00 Ref. 906782 06-Feb-2014 06-Feb-2014 OOCWA0140370084 GEMBO DORJ., BOBL 4,900.00 Ref. 906783 10-Feb-2014 10-Feb-2014 0001445140410009 Ref. 906784 100.00 27-Feb-2014 27-Feb-2014 0001444140580006 LOCAL CLEARING 16,677,500.00 BATCH #054121 Ref. 076030 27-Feb-2014 27-Feb-2014 000CHQD140580249 CHO DEPO BY 1,300.00 BTFEC-DONAR PROJECT TO SONAM WANGMO Ref. 906786 28-Feb-2014 28-Feb-2014 000TOFA140590010 TTTO KATHLEEN G. 679.616,71 'i MIKITIN BY BTFEC-DONAR PROJECT FOR USD 10890.79 @62.26 CHARGES NU1 556.12 DT.28.02.2014 06-Mar-2014 06-Mar-2014 0001444140650005 Ref 906787 2,526,700.00 07-Mar-2014 07-Mar-2014 0001444140660007 Ref. 906789 13,427,640.00 13-Mar-2014 13-Mar-2014 000CWA0140720187 PD TO GEMBO 4,823.00 TSHERING ID#11303001420 Ref. 906792 14-Mar-2014 14-Mar-2014 000CHQD140730026 chq ISS TO M/S. BHUTAN 642,438.00 TRUST FUND BY BTFEC-OONAR PROJECT Ref. 906785 14-Mar-2014 14-Mar 2014 000CWA0140730028 PD TO GEMBO 11,489,00 TSHERING D#11303001420 Ref. 906793 14-Mar-2014 14-Mar-2014 0001450140730007 Ref, 076035 41,934,500.00 17-Mar-2014 17-Mar-2014 000OCHQD140760083 CHQ ISS TOM/S. 7,472 800.00 BHUTAN TRUST FU BY BTFEC-DONAR PROJE Ref 906790 03-Apr 2014 03-Apr-2014 0001452140930013 BNBL,TPHU 4 100,000.00 CHO.REAL[SED TO BOBL,TPHU-P-03/04/2014 Ref. 906794 29-Apr-2014 29-Apr-2014 0001450141190019 BNBL,TPHU 18,007ý00 CHQ REALISED TO BOBL,TPHJ-P-29/04/2014 Ref 906795 07-May-2014 07-May-2014 OO0CHBK141270008 CASH-CHEQUE 50.00 CHARGES 13-May-2014 13-May-2014 0001450141330129 284.00 14-May-2014 14-May-2014 0001203141340087 13891 00 16-May-2014 16-May-2014 0001445141360018 10.00000 22 May 2014 22-May-2014 000CWA0141420095 cash paid to gembo 200,000 00 tshering id11303001420 Ref. 251901 22-May-2014 22-May-2014 000FTTF41420005 T TO IMA 565.017,78 iNTERNATIONAL LTD. BY BTFES THIMPHU FOR GBýP5665,0,0@99.68, GHARGES'NU:J1327 38 DT 22.05.201ý4 27-May-2014 7 May-2014 00OCHQD141473209 CHGQ iSS BY 000.00 bTFEC-DONAR PROJECT Pa No,1 BHUTAN NATIONAL BANK LIMITED TO DRUK AIR CORPORATION LTD Re' 251902 28-May-2014 28-May-2014 000FWA0141,80002 GBP PAID TO DORJI 301.650 00 SCHUKEY WANGCHUK AS PER BNBL LETTER#BNBL/TH/GEN-R EL1314/6830 28-May-2014 28-May-2014 000FWA0141480003 USD PAIDTO DORJI 212.336.80 SCHUKEY WANGCHUK AS PER BNBL LETTER#BNBL/THIGEN-R EL1314/6828 28-May-2014 28-May-2014 000CASW141480144 POINTADJ (CENT 68 40.00 @58.87) LETTER#6828&6830 PAID TO DORJt & CHUKEY 29-May-2014 29-May-2014 000CHQD141490173 CH ISOD TO DAC BY 44,298.00 BTFEC-DONAR PROJECT Ref. 906800 30-May-2014 30-May-2014 OOOCWA0141500214 YESHEY PELDON 179,550.00 CID#11001001397 Ref. 251904 30-May-2014 30-May-2014 000FWA0141500010 USD PAID TO MR, 80,797.50 PASSANG AS PER AUTH LETTER ATATCHED BNBLTH/GEN-REL1314/8 923 30-May-2014 30-May-2014 OOFWA0141500011 USD PAIDTO MR. 88,578.00 PASSANG AS PER AUTH LETTER ATATCHED BNBL/TH/GEN-REL131416 925 30-May-2014 30-May-2014 OOFWA0141500012 USD PAIDTO MR. 88,578.00 PASSANG ASPERAUTH LETTER ATATCHED BNBL/THiGEN-REL1314/6 924 04-Jun-2014 04-Jun-2014 0001451141550027 RRCO,THIMPHU Ref 215,00 251909 09-Jun-2014 09-Jun-2014 0001450141600006 4.500,00 16-Jun-2014 16-Jun-2014 005CHQD141670006 issue to tshi namgay resort 132,242.00 Ref. 251905 18-Jun-2014 18-Jun-2014 0001444141590012 10,540.00 20-Jun-2014 20-Jun-2014 OOCHQD141710126 CHQ ISS TO YESHEY 4,500.00 PELDEN BY BTFEC-DONAR PROJECT Ref. 251913 20-Jun-2014 20-Jun-2014 OOOCWA0141710130 PAID TO PASSANG 500,00 ID#50000857020 Ref. 251914 20-Jun-2014 20-Jun-2014 000CHD141710139 CHQ ISSTO PEMA 41.802.50 CHOPHEL BY BTFEC-DONAR PROJECT Ref. 251911 20-Jun-2014 20-Jun-2014 OOOFTFO141710006 BEING TT FOR (IUCN 67,014.61 WORLD PARKS CONGRESS 2014#1 AUD 1175.00@56.75,CHARGES BTN 333.36 TRF BY BTFEC,THIMPHU 24-Jun-2014 24-Jun-2014 0001445141750036 RRCO Ref 251917 2,618,00 24-Jun-2014 24-Jun-2014 000CHQD141750189 CHQ ISS TO BTB BY 139,80000 BTFEC-DONAR PROJECT Ref. 251916 25-Jun-2014 25-Jun-2014 005CHQD141760034 CQ DEP BY 318,240,00 UDUMWARA RESORT ISSUED BY BTFEC-DONAR PROJECT Ref. 251915 30-Jun-2014 30-Jun- 14 OOOCWAO141810234 PD TO GBEMBO 280,00 TSHERING ID#1 1303 001420 Ref, 251912 30-Juni-2014 30-Ju O0CDA0141810435 DEP B3Y GEMBO 54 ß TSHERING Pge NG D.rtor Bhutan Trust Fund foi 111fronmTIIen tal Conxw~r\ a1til' Bhutan Trust Fund for Environmental Conservation Sustainable Financing for Biodiversity Conservation and Natural Resources Management Project GEF Grant No. (TF014705) (P127490) Statement of Sources and Uses of Funds 6 months Deriod J odarvr 2013-.3 une 201-3 - Fiscal Year 2012-2013 IUFR - I 6 months This Year Total Project Period A. Opening balance 1. DPA Designated Account 2. BTFEC Special account 3. Advances to Gis 4. Advances to contractors / vendors by BTFEC B. Sources of Funds 1. Funds disbursed by Bank to the DA 2. Others (BTFEC Own Sources) 1,202,000.00 1,202,000.00 1,202,000.00 Total Source of Funds 1,202,000.00 1,202,000.00 1,202,000.00 C. Uses of funds by Category 1. Expenditures by BTFEC 2. Expenditures by GIs 1 202,000.00 1,202,000.00 1,202,000.00 Total Fund Use 1,202,000.00 1,202,000.00 1,202,000.00 D. Net Change (A+B-C) E. Closing Balances 1. DPA Designated Account 2. BTFEC Special account 3. Advances to GIs 4. Advances to contractors / vendors by BTFEC Total Closing Balances :- Amounts in Nu Prepared by Approved by: Date: Z M 2>C E , c <8 o u)c 3C C NC- cu C5 0 L 0 CC ~xID n 0 0 - u.E - - 00 0 T0 <ø4 E c la E mm u >'- o r 41 Gi CP CLa ø E - = nO .A U- ID -- - - - - - -- - c g mese g E z S C E oE e r o ø o ~ cu .:CL CL m I-El - ~ -W 0 0 E - - - z 00, _- "a Om 0 K EE 0 0 0 a CD E c- c C3 - t- r- : C2 x u 2 ,-i-- 0 0- Z Z o 0 0 t3 -r Z3 E- - - - - - - - 0 0 o o C5-u Oc~ D. - f c O Le c L0 E 42Z c~ o- -c -c 6 Z 0 ~' * LO fl r wo 0 Bhutan Trust Fund for Environmental Conservation Sustainable Financing for Biodiversity Conservation and Natural Resources Management Project GEF Grant No. (TF014705) (P127490) Statement of Sources and Uses of Funds 6 months period ecember20134- Fiscal Year2013-2014 IUFR - 1 6 months This Year Total Project Period A. Opening balance , 1. DPA Designated Account 2. BTFEC Special account 3. Advances to GIs 4. Advances to contractors / vendors by BTFEC B. Sources of Funds 1. Funds disbursed by Bank to the DA S 2. Others (BTFEC Own Sources) - 1,202,000.00 Total Source of Funds - 1,202,000.00 C. Uses of funds by Category 1. Expenditures by BTFEC 2. Expenditures by GIs 1,202,000.00 Total Fund Use - - 1,202,000.00 D. Net Chan e A+B-C ) - E. Closing Balances__ 1. DPA Designated Account 2. BTFEC Special account 3. Advances to GIs 14. Advances to contractors I vendors by BTFEC Total Closing Balances:- Amounts in Nu Prepared by Approved by: Date: s o - E C -cm re E 1- .t!0 4 Ei cm 0 z 0 &E UJ r 2 00 20 a C> E 0 ci CN 2 mc r -- 4 G t- -m- t jr 00 e IW RO cm r ono 00 0 CL c 0 - C .-E 00 <0 0 033 0ÄD m m-n cE Em 00 i in E E 2 c e~ 0 LLJL 0 2Z 9 w g ig f. o E~ 0 C* LLGCL 0 E E o 0 .l i'-- -- -- -- Z3 0.0 C CC II ± o --------- --- o CDi7 LL ei aoxom , z IE - M - ø .0 el m~ CJ ""C-5 0 m cCO o TL L r (7 11 APPENDICES A: Profile 1. PROJECT PROFILE. Project Title : Grant for Sustainable Financing for Biodiversity Conservation and Natural Resource Management Project Identification # : GEF Grant No.TFO 14705 (P 127490) Project Amount : $4,080,000 Project Effective Date : 04 November 2013 Expected Project Closing Date: 03 November 2018 Grant Signing Date : GEF Grant Agreement signed on 20 August 2013 and Subsidiary Grant Agreement on 23 August 2013 2. PROJECT DEVELOPMENT OBJECTIVES. The project development objective (PDO) is to improve the operational effectiveness and institutional sustainability of the Bhutan Trust Fund for Environmental Conservation. THE PDO is also the global environmental objective (GEO). 3. PDO LEVEL RESULTS INDICATORS. Performance towards achieving the development objectives will be measured through the following key performance indicators: * Areas brought under enhanced biodiversity protection (ha) * Disbursement of total financial resources for activities approved by BTFEC increased; * M&E system that effectively monitors grant implementation established * Land area where sustainable land management practices have been adopted as a result of the project; * Direct project beneficiaries (number) of which female (%); 4. PROJECT DESCRIPTION PROJECT COMPONENTS Component 1: Enhancing the operational effectiveness and sustainability of BTFEC (US$0.8 million) Specially, Component I will finance training, consultancies, equipment, data management systems and limited piloting to implement the following activities: * Stakeholder meetings toward mainstreaming conservation and NRM into national policies; * Local community consultations; * Dissemination of good practices, results and outcomes stemming from the implementation of the grant-funded activities. 5. PROJECT COST AND FINANCING Project Costs by Components: Project Cost by Component Project Cost GEF Financing % (ULS$ million) (US$ million) Financing Component 1: Enhancing the operational 0.800 0.800 100 effectiveness and sustainability of BTFEC. Conponent 2: Improving conservation management of the High Altitude Northern Areas (HANAs) landscape in Bhutan 2.840 2.840 100 (including protected areas and associated methods, forests and agricultural systems) Component 3: Capacity building for mainstreaming of conservation and sustainable forest and natural resource 0.440 0.440 100 management approaches in national policies, strategies and plans. Total Project Costs 4.080 4.080 100 B: OBJECTIVES OF AUDITING The objective of the audit is to ascertain and report: i. Whether the financial statements fairly reflect the operations of the Project for the financial year 2013-2014; ii. Whether the project has complied with laws, policies, rules and regulations of the government and the Operations Manual of the BTFEC; iii. Whether the funds acquired were utilized efficiently and effectively for the intended purposes and to check the legality, regularity and propriety of the expenditure; iv. Whether adequate and effective internal control system has been instituted; and v. To determine whether the desired results or benefits established by the project are being achieved. C: AUDIT METHODOLOGY i. Reviewing internal controls in place in the system; ii. Inspection and examination of the records, documents and statements; iii. Checking the compliance of applicable rules and regulations that are in force; iv. Seeking relevant information from knowledgeable person inside and outside the organization; v. Checking and confirming the arithmetical accuracy of the accounting records; vi. Computation and analysis of relevant data; and vii. Conducting the physical verification of assets and stores. 4 essa ned usavana ..·