NATIONAL DISASTER MANAGEMENT AUTHORITY Ministry of Home Affairs, Govt. of India NATIONAL CYCLONE RISK MITIGATION PROJECT (NCRMP) A-1, Safdarjung Enclave New Delhi-110 029 Telephone No.26701744 Fax No.26714321 Nol-1/West Bengal/2016-PMU November 21, 2019 To,Noebr2,21 Sh Anup Karanth, TTL & Senior Disaster Risk Management Specialist, The World Bank, 70 Lodi Estate, New Delhi-1 10003. Subject: - Audit Report of the Pr.A.G. West Bengal in respect of World Bank Assisted National Cyclone Risk Mitigation Project Phase-Il (IDA Credit 5693-IN) for the year 2018-19. Sir, I am directed to enclose the photocopy of the Audit Report of the Pr.A.G. West Bengal in respect of World Bank Assisted National Cyclone Risk Mitigation Project Phase-Il IDA Credit 5693-IN West Bengal State for the year 2018-19 for further necessary action at your end please. 2.Kindly acknowledge the receipt of the Audit Report for the financial year 2018-19. Yours Sincerely, (Samir Kumar) Dy. Project Director, NCFRMP (NDMA) Encl;- As Above Copy to;- 1. The Principal Secretary & Project Director, SPIU West Bengal. 2. The S.E, & Project Manager , SPIU NCRMP-1l, Department of Disaster Management & Civil Defence, Government of West Bengal, with request to take necessary steps/action for regularization/adjustment of the ineligible amount of Rs 1254.83 lakh under intimation to this office during the current financial year. PHONE: 2 3-3151/3152/3163 FAX: (033) 2213-3174 INDAN AUDIT AND ACCOUNTS DEPARTMEN T OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL ÆENERAL & SOCIAL SECTOR AUD.IT WEUT BEi GAL TR 5ASURY - BUILDINGS, 2, GOVT PLACE (WEST), W-OLKA~A - 700 001 No. 3SFASS V/EAP/WR~/NCRMP-/2 08-1 9/ 73 The Pricip' Sre .ry to o Gt. of We Be N>aia, 2" Floor, Howra102, : dit Repor in respeet >f Word Bank sisted Nationa Cx comi Rsk Mitigi;i ~~e a rojc- (ntrton e nt Aociation !iinFancipg - 593-N) for tle year Project Audi Report for thei year 218-19 aloig with the Pro~'t Yt,ialS~tc.mcnt'aiie.i ',anagcmcntAsscrtå-':) ýetu'r, Te. recept of Au,it eport nay please be "kaowledged Yourpfjd ully, Tinir fhadra>- Sr. De puty Accountait General (FAW) PHONE: 2213-3151/3152/3163 FAX: (033) 2213-3174 INDIANAUDIT 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 the Government of West Bengal, Department of Disaster Management& Civil Defence, Nabanna, 2nd Floor, 325, Sarat Chatterjee Road, Mandirtala, Shibpur, Howrah - 711102. Report of the.Comptrolkr and Auditor General of India on the Project Financi a Statements We have audited the accompanying financial statements of the Nationa Cyclone Risk Mitigation Project - 11 financed under World Bank Loan No 5693-IN/IDA, which comprise the Statcnent of Sources and Applicaions of Funds and the Reconciliation of ciairrs to total Applications of Funds, and the Management Assertion Letter for the year ended 31 _ach 2019. iThese statements are the responsibility of the Project's management, Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We conducted our audit in aciordance 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 areounts and disclosures in the financial statements. It also includes assessing the accounting princtpls used and significant estimates made by management, as well as evaluating the overall statedent 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 the National Cyclone Risk Mitigation Project - c, for the year ended 3 1 March, 2019, in accordance with Government of India accounting standards. In addition, in our opinion, (a) with respect to SOEs/ PS, adequate supporting *cumentation has been maintained to support claims to the World Bank or reimbursements of expenditures incurred; and (b) except for ineligible expenditures as detai edin the audit Contd.... (2) observations, appended to this audit report, expenditures are ligible for financing under the LoamCredit Agreement. During the course of the audit, SOEsPFS and the connected documents were examined ard these can be relied upon to support reimbursement under the Loan/Credit Agreement. This report is issued without prejudice to CAG's right to inco orate the audit observations in the Report of CAG of India for being laid before Parliament/State Legislature. Audit Observations: The Project Financial Statement (PFS) in respect of World Bank assisted National Cyclone Risk Mitigation Project511, for 2018-19,Jurnie by the Pr6ject Authority, disclosed ato-al expenditure of T16293.51Iakhi of which Z 150386 lakh has been 4dmitted -n audit., Out' Of, 15038.68, amount eligible for reimbursement stands at- Z 11413.33 lakh, in audit as shown below. List of items held inadmissible in respect of claims for the year 2018-19 is shown at Annex ure. (Z in lakh) Expenditure Expenditure no tExpenditure Amt e om tsF ncrej amitte-d in ad itted in au dit r'eimburse- reimbursement (As per PFS) audit (Col.(2)-Col(3) r merm e rl~~ (2) __ A 77.00 0 77'00 1o7 97 6 .3C 15734.97 If23 ' - 14501.35 75% 10876.00 annexre) (32.40 .9.71 2.90 (details in annexure) D 9. I (details in _______ anneX nre) Tota] 16293.51 1254.83 15038.68 11413.33 .W 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: 05 September 2019J Annexure List of items held inadmissible in respect of claims of financial year 2018-19. SI. 6Components Unit Reasons for inadmissibility in Amount No audit inadmissible(Z) Tamluk Unadjusted Secured Advance 989076 PWD Secured Advance paid to M/s. Bridge & (Social Roof Co. India Ltd. for construction of Sector) Multipurpose Cyclone Shelters Division (MPCSs), pending adjustment to the relevant expense account head in keeping with provisions of para 4.1(2) of chapter 4 of Financial Management Manual of NCRMP Phase-l _ _ 2 B WBSEDCL, Upadjusted Mobilisaton Advance 107734 Contai Mobilisation advance paid to M/s Larsen & Toubro Ltd. for underground cabling work in Digha-Shankar area, pending adjustment to the relevant expense account head in keeping with provisions of para 4.1(2) of chapter 4 of Financial Management Manual of NCRMP Phase-1 . 3 B 7 Nos. PWD 14638201 Division and The expenses booked in the PFS WBSEDCL l57347000 whereas audit of the respective DDOs revealed that actual expenditure incurred by them was ?1558858799 This resulted in excess booking of Z 14638201 which is held ___________ inadmissible. T --a - 123 362411 Total 4 CAT 1232 1 ATI, Unspent sum shown as expenditure in 210000 Saltlake PFS Out of total Z 1200000, Z 990000 was incurred. Thus the unspent sum was 210000. PFS has shown ? 1200000 as expenditure. Hence Z 210000 is held inadmissible. C DM, North Non-production of vouchers199997 Expenditure inurred as per IFMS but Parganas related vouchers not produced to audit. Hence expenditure ofZ 199997 (Z 100000V Z 99997) is held inadmissible. Unutiised fund shown in P20000 Allotment of fund of T 120000 for Sandeshkalli-I1 block against training programme not utilised though booked as expenditure. Hence the unutilised fund is held. inadmissible. (I ~ , I~ South 1111 ''L ban ce sh o w in P FS - 06 2i4j P20000a 70265 24 Pagana Outof total allotment Of fund of T120000 for Basanto Block against taining Programme, T 70265 were not incurrred though booked as expenditure. Thus the unspent sum Of Z 70265 is held inadmissible, 7 ( Expenditure not related to Component C o.LNCRM.P-11 33368 Expenditure incurred to ?33368 for Disaster awareness Rally by BDO, Partharpratima which were not related to Component C of NCRMp-11 as those involved expenses towards purchase of fuel during Dec,2018 and Jan.2019 (upto 12.01.2019) whereas awareness programmes were conducted on 91h and 12, March,2019. Hence the ex nditurepe .33368 is held inadmissible. C Expenditure not related to Component c26711 ofNCRMP-f I Expenditure incurred to Z2671 I by BDO Kultuli which were not related to Component C of NCRMP-Il as those involved eXpenses towards cost of computer peripherals and charges for meal of trainees on days other than the dates oftraining. DM,RPurba Violation of Govt. order 10610 Midnapur In. violation of Govt. order bearing o. 1775/8 dt. 26,02.2019, expenditure was incurred by BDO, Contal between 16.022019 to 19.02.2019 towards refreshment *charges alongwith carrying charges of relief material were not related to training programme scheduled on 28.02.2019. Hence the expenditure of Rs.10610 is held inadmissible SNon-production of vouchers No detailed vouchers and also U.C. against 300000 the expenditure incurred by the institute of Local Govt. and Urban Studies (ILGUS) for conduct of training were available on record at the SPIU. Hence the expenditure of 300000 is held inadmissible, Total 970951 oe nDdoo 7 4I 4nos. PWD Ecsbo kin of Ex enditure 1149489 Division and The expenses booked in the PFS ?449 14000 SPIU whereas audit of the respective DDOs revealed that actual expenditure incurred by them was Z43764511 This resulted in excess booking of Z 1149489 which is held inadmissible Total 1149489 Grand Total 125482851 i.e. total 12483 lakh