Audit Completion Date: 14 -12-2017. Secretary The Economic Relations Division Ministry of Finance, Sher-e-Bangla Nagar,Dhaka. I. We have audited the accompanying financial statement of the "Private Sector Development Support Project (PSDSP) financed by IDA under Credit No.4866 BD & DFID Grant No. TF 099730 as on 30 June 2017 and for the year then ended. The preparation of the financial statement is the responsibility of management. Our responsibility is to express an opinion on the financial statement based on our audit. II. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures made in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. III. In our opinion, except non-compliance of financial rules and regulations in subsequent observations stated along with the management letter following the Financial position of "Private Sector Development Support Project "as at 30 June 2017 and the result of its operations and the cash flows for the year then ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. IV. Opinion Status: Unqualhfied. (Tanima Tanin) Deputy Director For Director General Foreign Aided Project Audit Directorate. Phone: 02-8391547. G:M 489-1DA-PSDSP-(Kabir)--.doc - 8 - Private Sector Development Support Project (PSDSP) Project Financial Statement 30th June, 2017 (Figure in lakh Taka) Cumulative Current Cumulative Resources Notes Prior Period period Current Period Government of Bangladesh 1 282.54 883.35 1,165.89 Loan from Development Partner (IDA) 2 30,253.29 - 30,253.29 Grant from Development Partner (DFID) 3 9,342.27 3,500.00 12,842.27 Loan from Development Partner (IDA)/Additional 9,886.51 9,886.51 Other resources (Bank Interest & others) 4 96.12 2.30 98.42 CONTASA Account 5 Opening Balance (IDA) 7,053.49 Opening Balance (OF0) 727.48 Cash opening balance 6 4,744.03 Bank Interest _39,974.22 26,797.15 54,246.37 Expenditure and Cash (According to PP) 1.Pay & Allowances 2,114.39 946.21 3,060.60 2.Honorarium 31.29 4.71 36.00 3.Office Operatinal Cost 301.57 121.85 423.42 4. Office Consumables/Stationery 55.36 24.97 80.33 5.Printing/Publication/Book/Journals/Advertisement 227.75 71.27 299.02 6. Seminers/Workshops/Study Tour 848.04 460.51 1,308.55 7. Repairs & Maintenance 26.30 13.98 40.28 8.Telephone/Fax/Internet/Electricity 40.36 19.12 59.48 9.Vehicles Rental 215.62 25.30 240.92 10.Vehicle 667.97 - 667.97 11.Office Equipment _ _86.28 5.38 91.66 12. Office Furniture/ Fitting & Fixture 360.46 881.86 1,242.32 13. Consultancy Service 6,625.79 2,497.25 9,123.04 14. Computer/Scaner/Laptop/Printer 113.26 29.49 142.75 15.Solar Panel, Street Light & CD Vat 1,822.74 1,225.32 3,048.06 16.Office Decoration 12.48 - 12.48 17.Entertainment 20.85 11.83 32.68 18.Travel Expenses 94.48 6.88 101.36 19.Others Expenses 97.30 40.26 137.56 20. Insurance/Bank Charges 0.12 0.66 0.78 21.License fee/Site Clearance & others 16.93 3.85 20.78 22. Resettlement Cost 6.40 - 6.40 23. Computer Consumables 0.13 1.04 1.17 24.Out Sourcing 26.54 16.47 43.01 25. Development Expenditure 10,056.74 11,214.08 21,270.82 17. Management of Green Zone Cell 177.36 177.36 26. Contingencies 4.76 1.12 5.88 27. Land Acquisition & Development 3,493.41 2,886.13 6,379.54 28.Bannk Interst 81.90 2.16 84.06 Committee Meeting 1 3.13 3.13 Total Expenditure 27,449.23 20,692.21 48,14143 Cash Closing Balance CONTASA Account : Loan from Development Partner (IDA) 7,053.49 9.10 9.10 Grant from Development Partner (DFID) 727.48 503.99 503.99 Loan from Development Partner (IDA/Additional Financing) 3,497.28 3,497.28 Operating Account (RPA) 4,744.03 2,083.29 2,083.29 Operating Account (RPA)/Additional 11.27 11.27 Total Expenditure and Cash 39,974.22 26,797.15 54,246.37 Pivt Se.- ,ctor Development Support Project (PSDSP) NOTES TO FINANCIAL STATEMENT 30th June, 2017 1 Government of Bangladesh Funds are allocated by the Government of Bangladesh to cover GOB's share of eligible project expenditures, as specified in the Project Pro-forma and in the Annual Development Programme for each year of the project. Any allocated funds that have not been expended by the end of a fiscal year lapse and must be returned to GOB. GOB contributions to the project since inception are as follows (in lakh Taka): Inception to 30th For the year Inception to 30th Particulars June 2016 2016-2017 June 2017 Disbursement by GOB 282.54 883.35 1165.89 Less: Refund to GOB Total; 282.54 883.35 1165.89 2 Loan from Development partner (IDA) The IDA has provided funds to the Project to cover it's share of eligible Project expenditures. These funds, which must be repaid to IDA after the conclusion of the Project, have been drawn by the Project in accordance with the following withdrawal procedures. Inception to 30th For the year Inception to 30th Particulars June 2016 2016-2017 June 2017 Initial Deposit (Advance) 30,253.29 30,253.29 Initial Deposit (Advance)/Additional 9,886.51 9,886.51 DPA (Direct Payment) RPA (SOE Procedure) _________ ________ RPA (Non SOE Procedure)_________ ____________ Others Total 30,253.29 9,886.51 40,139.80 2 Grant from Development partner (DFID) The DFID has provided funds to the Project to cover it's share of eligible Project expenditures. These funds, which must be repaid to DFID after the conclusion of the Project, have been drawn by the Project in accordance with the following withdrawal procedures. Inception to 30th For the year Inception to 30th Particulars June 2016 2016-2017 June 2017 Initial Deposit (Advance) 9,342.27 3500.00 12842.27 DPA (Direct Payment) RPA (SOE Procedure) RPA (Non SOE Procedure) Others Total 9,342.27 3,500.00 12,842.27 3 Others Resources Others Resources consist of the following: Inception to 30th For the year Inception to 30th Particulars June 2016 2016-2017 June 2017 Project Revenues ------_____ ____________ Interest on Bank 96.12 2.51 98.63 Total 2.51 98,63 4 Cash The Project maintains One bank accounts A special account : Operating A/C (1006-413736-043 & 1006-413736-044) which is kept in IFIC Bank Limited , Dhanmondi Branch, Dhaka to hold funds advanced by IDA and operated by the Project Coordinator. Year end cash balances were as follows: Inception to 30th For the year Inception to 30th Particulars June 2016 2016-2017 June 2017 CONTASA Account 7,780.96 4,010.38 4,010.38 Operating Account (RPA) 4,744.03 2,094.56 2,083.29 Operating Account (GOB) Total 12,524.99 6,104.94 1 6,093.67 AUDIT OPINION ON SOE 01. We have audited the statement of expenditure (SOE) of the "Private Sector Development Support Project" for the year 30 June2017, submitted to the World Bank for reimbursement of expenditure in accordance with IDA Cr No- 4359-BD and DFID Grant No:TF-099730 . 02. The audit was conducted following International Standards on Auditing. Accordingly it concluded such test of accounting records and supporting documentations, review system of internal control so far exists, adopting necessary auditing procedures that we considered essential under the circumstances. 03. The particulars of Withdrawal on the basis of SOE as submitted to the audit team are shown in the enclosed statement. 04. In our opinion the SOE can be relied upon, to support the applications for credit and grant disbursement by the IDA against expenditure incurred for the purpose of the project as specified in particulars of withdrawals applications. Opinion Status: Unqualified. (Tanima Tanim) Deputy Director For Director General Foreign Aided Project Audit Directorate. Phone: 02-8391547. G:\ \489-1DA-PSDSP-(Kabir)--.doc 35 A UDITf19 S PdENORT ON SPECIAL ACCIJNT 1. We have audited the special account of "Private Sector Development Support Project "under IDA Credit No.4866 BD and DFID Grant No:TF-099730 for the year ended 30 June 2017. 2. Our audit was carried out in accordance with International Audit Guidelines. Accordingly our audit included such review of system of internal control, test of the accounting records and supporting documentation, verification of accounts balances and other auditing procedures that are considered necessary under the circumstances, 3. The accompanying Special Accounts Statements were prepared on the basis of cash basis cash deposits and withdrawals for the purpose of complying with the above loan covenant. 4. In our opinion, the Special Account Statement gives a fair view of the account for the year ended 30t" June 2017 on the basis of cash deposit and withdrawals. (Tanima Tanim) Deputy Director For Director General Foreign Aided Project Audit Directorate. Phone: 02-8391547. G:\ \489-IDA-PSDSP-(Kabir)--.doc 36