Government of Nepal Ministry of Energy,Water Resourse and Irrigation Department of Electricity Development Kabeli-A Hydroelectric Project IDA Grant No.H900 NP Audited Financial Reports FY 2017/2018 (2074/2075) Government of Nepal Ministry of Energy,Water Resourse and Irrigation Department of Electricity Development Kabeli-A Hydroelectric Project Audited Financial Reports (IUFRs) FY 2017/2018 (2074/2075) Contents Report 1 Sources and Uses of Funds Report 2 Designated Account Statement Note 1 GoN Fund and GoN Reimbursable Fund Note 2 Disbursement Report � [rci о о о о ^ � о �n � ы С о о о р � о о N N Н � �р � т `� г" N о ГмоV и`n и N <г й е - °о °° м о о о т in in '- с о � `� м м т о сд о� � гP � Е С� -- Е гv - пi ' cv м v м а � _ " °' °' б _ � о i' � � а " � а - � а о � � о � и � т С� О О N N и о ¢"J � 1� И � � � о � OJ t0 гL�J_ Ф о N ьГ) с0 О ' . _ гV - д r oJ О� О� � О д,''.. - оо '� � о . о � N о (� "� iл г�[� О ��LJ И v � � О � .. . 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Q � С �7 � т со.� го и i� ш t � � � � � т о � и L � а� � й -- С� С � � � а� сСл � U -- о � _ т о а га и � � � О ш и О Q ь- � -° С� __ N С") ln Governmen! of Nepal Minist,y of Energy,Wate Resourse and Irngatior, Department of Electric(ty Developmen', Kabeli-A Hydroelectric Project Annual Note I GoN Fund and GoN Reimbursable Fund Fiscal Year: 2017/2018( 2074/2075) Periodi 16107/2017 to 16/0712018 Amount in NPR S. N. Description umulalive up to Previ&js Current Fiscal Year Cumulative to Dale Fiscal Year2016,12017 Ist Trimester 2nd Trimester 3rd Trimester Year to date GoN F-,)nd Add. Soirce to be changed fmim IDA/T F source A Less Scirce to be changed to IDA/T F source Less Freeze/ Unspent Amount Net GoN Fund GoN -eimbjrsable Fund Add: Soirce to be changed from GoN Source Less FreezeAmount B Less Scirce to be changed to GoN Source Less Direct Reimbursement Received Less I ransfer to GoN Treasury from Designated Account Net GoN Reimbursable Fundl Total (A+B) I . i . i . . i - enishabie (Designated Account Replenishable Amount in NPR A F ids -.-a-isfer to GoN Treasury A c from DA - I B Payme-it from DA 2,340.230 05 2,340,230 05 Le,;,, Dcc,imented to IDA/-, F Grant D I PSS E ocjme-)ted to IDAf-F Credit Net Designated Account Replenishable (A+B-C-D) Government of Nepal Ministry of Energy,Water Resourse and Irrigation Department of Electricity Development Kabeli-A Hydroelectric Project Annual Note 2 Disbursement Report Fiscal Year: 2017/2018(2074/2075) Period: 16/07/2017 to 16/07/2018 Amount in USD Disbursedl Documented S.N. W/A No Value Date Advance Received Category 1 2 3 4 Total 1 2 3 4 5 6 7 8 9 A. Cumulative as of Last FY 201612017 9-Mar-17 200,000.00 B. Current Fiscal year 1st Trimester Total 2nd Trimester Total 3rd Trimester 2 Total 200,000.00 Sub-Total of (B) - -_-_-_- C. Cumulative as of Reporting Period (A+B) 200,000.00 - - - Ref No. - 2075/76 LALV3, Date: March 14, 2019 INDEPENDENT AUDITOR'S REPORT The Secretary Ministry of Finance Singh Durbar, Kathmandu Report on the Financial Statements We have audited the accompanying Project Financial Statements including Statement of Designated Account and Statements of Expenditures (SOEs) of the "Kabeli-A Hydroelectric Project" financed by IDA Grant No. H900NP as at 16 July 2018 (32 Ashad 2075) and for the year then ended and a summary of accounting policies and other explanatory notes. Management's Responsibility for Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with the Government of Nepal (GON) accounting policies and relevant practices. This responsibility includes: designing, implementing and maintaining internal control relevant to preparation and fair presentation of project financial statements that are free from material misstatement, whether due to fraud and error. Auditor's Responsibility Our responsibility is to express an opinion on these Project Financial Statements based on our audit. We conducted our audit in accordance with the INTOSAI (International Organisation of Supreme Audit Institutions) Fundamental Auditing Principles. Those Principles require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion Management letter highlighting areas for improving financial management including compliance with financial covenant is attached herewith. In our opinion, the Project Financial Statements including Statement of Designated Account, in all material respects, give a true and fair view of the financial position of the "Kabeli-A Hydroelectric Project" as of 16 July 2018 (32 Ashad 2075 and of the results of its operations and its cash flows for the year then ended in accordance with GON accounting policies.We also report that funds provided under IDA Grant No. H900NP have been utilized for intended purposes. In addition, with respect to SOEs, a) adequate supporting documentation has been maintained to support claims to donors for reimbursement of expenditures incurred; and b) expenditures are eligible for financing under the above mentioned Loan/Grants. D(u udRam Gautam) Deputy Auditor General