Restricted THE REPUBLIC OF THE UNION OF MYANMAR THE OFFICE OF THE AUDITOR GENERAL OF THE UNION INSPECTION DEPARTMENT AUDIT REPORT ON ESSENTIAL HEALTH SERVICES ACCESS PROJECT FINANCED BY THE WORLD BANK LOAN IMPLEMENTED BY THE MINISTRY OF HEALTH & SPORTS DEPARTMENT OF MEDICAL SERVICES AND DEPARTMENT OF PUBLIC HEALTH FOR THE PERIOD ENDING 31 MARCH 2017 Date: 16 February 2018 Restricted Contents Audit Para Page Particular From To From To 1 2 3 4 5 6 1 Introduction 1 - 1 - 2 Responsibilities of management for receipts 2 - 1 - and expenditure statements 3 Responsibilities of the auditor 3 4 2 - 4 Audit area 5 - 2 - 5 Audit Opinion 6 - 2 - Audit report on receipts and expenditure statements of the Essential Health Services Access Project under the World Bank’s loan implemented by Department of Medical Services and Department of Public Health, Ministry of Health and Sports for the year ending 31 March 2017 Introduction 1. The Ministry of Health and Sports (former Ministry of Health) made a request us to conduct audit to provide opinion on financial statements of the Essential Health Services Access Project (EHSAP) financed by the World Bank (5542-MM) loan, and implemented by Department of Medical Services and Department of Public Health, Ministry of Health and Sports, for the year ending 31 March 2017. Therefore, we have audited the project financial statements in accordance with section (E) of the Auditor General of the Union Law. The implementing period for the Essential Health Services Access Project (EHSAP) is four years and it has three main components. Component 1 is strengthening service delivery, implemented by Department of Public Health and Department of Medical Services allocate funds (US$ 21 million per year) to States/ Regions. Component 2 is system strengthening and capacity building and implemented by Department of Public Health with US$ 4 million per year. Component 3 is contingent emergency response program. Management responsibility for Financial statements 2. The project management has the responsibilities to prepare financial statements (receipts & expenditure statements) in accordance with the project accounting standards, the Project Financial Management Manual, and generally accepted accounting principles. It has also the responsibility to make those financial statements free from material misstatements, whether due to fraud and error of management decision making process related to internal control. Restricted Auditor’s Responsibility 3. The auditor has the responsibilities to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements, and to express an appropriate audit opinion based on findings in accordance with generally accepted auditing standards (GAAS) and in compliance with ethical requirements 4. During the course of the audit, we requested and checked audit required information and evidence through the auditing process based on auditor’s reviewing and evaluatio n on material misstatements and deficiencies related to figures and assertions of quantitative conditions of the financial statements and presentations. Audit Area 5. We were able to conduct audit on the financial statements of the Essential Health Services Access Project (EHSAP) financed by the World Bank’s loan (5542 MM) for the year ending 31 March 2017 by Disbursement Linked Indicators. We also have audited funds allocation from Head Quarter to States/ Regions, transfers from Head Office to States/ Regions for the implementation of the project in respective States/ Regions, and Head Quarter’s monitoring the financial statements and reports submitted by States/ Regions. However, we were not able to carry out audit to see payment vouchers at States/ Regions level. Audit Opinion 6. In our opinion, the financial statements of the Essential Health Services Access Project financed by the World Bank loan (5542-MM), implemented by Department of Medical Services and Department of Public Health, Ministry of Health and Sports for the year ending March 31, 2017 were fairly presented. On behalf of Director-General San San Win Deputy Director-General Date: 16 February 2018