PHONE: 2213-3151/3152/3163 SPEED POST .FAX: (033) 2213-3174 ~rftfrf t ,* Jr), Ch 4M WT 4 I%gIC TT-; MwrrrFr~ ,2,7WT (VFFirq), chietaidi-700 00-f INDIAN AUDIT AND ACCOUNTS DEPARTMENT. OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (GENERAL & SOCIAL SECTOR AUDIT), WEST BENGA",, TREASURY BUILDINGS,.2, GOVT PLACE (WEST), KOLKATA - 700 001 No.356/FAWIFASS-V/EAPINHP-I & WD/2018-19/ I 89 Date: 01.11.2019 I C 'NOV 2019 o The Chief Engineer (D & R) &Nodal Officer, National Hydrology Project, West Bengal (SW), .Irrigation & Waterways Directorate, Jalasampad Bhaban, Western Block, l1t. Floor, Saltlake, Kolkata -700 091. Subject: Audit Report in respect of World Bank assisted National, Hydrology Project (Loan No. 8725-IN) for the financial year 2018-19. Sir, I am to forward herewith the Audit Report, duly incorporating the audit observations, in respect of World Bank assisted National Hydrology Project (Loan No. 8725-IN) for the financial year 2018-19. The receipt of the same may kindly be acknowledged. Enclo: As stated. Yo lly, (TimirB B ient A.41 Sr. Dy. Accountant General / FAW &i - .i3 t #2vr AkDt¶k~$ 0" o 7 -A-1'?A9 chief eer &W Directorate Govt. of West Bengal Jalasampad 8hawan Salt Lake, Kof-91 PHONE 2213-3151/3152/3163 FAX: (033) 2213-3174 WM mvaq ftwT WW T ~tATfilNF 2ATft' (*lO T 700 001 INDIAN AUDIT AND ACCOUNTS DEPARTMENT -OFFICE OF THE PRINCiPAL ACCOUNTANT GENERAL (GENERAL & SOCIAL SECTOR AUDIT), WEST BENGAL TREASURY BUILDINGS, 2, GOVT. PLACE (WEST), KOLKATA- 700 001 To The Principal Secretary to Government of West Bengal, Irrigation & Waterways Department, Jalasampad Bhaban, 1st. Floor, Saltlake, Kolkata-700 091. Report of the Comptroller and Auditor General of India on the Project Financial Statements We have audited the accompanying financial statements of the World Bank assisted National Hydrology Project (Loan No. 8725-IN), which comprise the Statement of Sources and Applications of Funds, Reconciliation of Claims to Total Applications of Funds and Management Assertion letter as furnished by the Project Authority for the year ended 31 March 2019. These statements are the responsibility of the Project's management. Our responsibility is to express an opifion on the accompanying financial statements based on our audit. We conducted our audit in accordance with the Auditing Standards promulgated by the Comptroller and 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 a 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 financial statements present fairly, in all material respects, the sources and applications of funds of World Bank assisted National Hydrology Project (Loan No. 8725- IN) for the year ended 31 March 2019 in accordance with Government of India accounting standards. In addition, in our opinion, (a) with respect to PFS, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and (b) except for ineligible expenditures as detailed in the audit observations, expenditures are eligible for financing under the Loan / Credit Agreement. During the course of the audit, PFS and the connected 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 in the Report of CAG of India for being laid before Parliament / State Legislature. Audit Observations: A. Relating to financiafyear 2018-19 The expenditure incurred in respect of World Bank assisted National Hydrology Project (Loan No. 8725-IN), for the financial year 2018-19 is ? 27246236.00 and expenditure admitted in audit is ? 27096528.00. Out of?27096528.00, amount eligible for reimbursement stands at ? 13548264 in audit as shown below:- (inT) Components Expenditure Expenditure Expenditure Percentage Amt eligible for Reasons for inadmissible in incurred as inadmissible admitted in of reimbursement audit per audit in audit reimburse- Audit ment (1) (2) (3) (4)(2-3) (5) (6) (7) Component 27246236.00 149708 -27096528 -50% 13548264 Hiring chargeg -(?4970S1.00) A, B, C & D ' incurred in excess of ceiling rates stipulated in Gazette Notification no. 3564- WT/3M-81/98 dated 24.11.2008 of Transport Department, GoWB. Total: 27246236.00 149708 27096528 13548264 B. Adjustment in respect of earlier periods-relating to financial year 2017-18. Claim of t39300.00 pertaining tb the year 2017-18 is held inadmissible during 2018-19 as tabled below (in T) Initial year Components Name of the Expenditure Reasons for not Expenditure Reasons for Of Division not admitting the not not expenditure admissible expenditure during the admissible admitting the (2017-18) year of expenditure (2018-19) expenditure during 2018- 19 1(2) (3) (4) 2017-18 Brwan1020.0 I5)(6) Burdwan r 10250.00 In violation of the memo 10250.00 No further Investigation of NPMU, MoWR, RD & development & Planning GR dated 09.10.2017, during 2018- Division, which stipulates that the 19 Burdwan participant would have t make their own arrangement for boarding and lodging during the training period, Compcuent participants were allowed A&D food charges Hence, the expenditure of ? 10,250,00 on food is held inadmissible. Burdwan 29050.00 ( charges 29050.00 No further Investigation (9050.00) incurred in development & Planning excess of ceiling rates during 2018- Division, stipulated in Gazette 19 Birdwaif NoTfiattion no. 3564- WT/3M-81/98 dated 24.11.2008 of Transport De artment, GoWB. Total 39300.00 39300.00 (Timir Bhadra) Sr. Deputy Accountant General (FAW), Office of the Principal Accountant General (General and Social Sector Audit), West Bengal, 2, Government Place (West), Treasury Buildings, Kolkata - 700 001 [Date: 27.09.2019]