#f Th fq9TMq f - 110002 DIRECTOR GENERAL OF AUDIT .SCIENTIFIC DEPARTMENTS Report of the Comptroller and Auditor General of IndiaAGCRN BUIDINARTMES A.G.C.R. BUILDING, LPR ESTATE TO, NEW DELHI-110 002 The Secretary to the Government of India, Ministry of Water Resources, River Development & Ganga Rejuvenation, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001. Audit Report on the Project Financial Statements: We have audited the accompanying financial statements of the World Bank assisted Dam Rehabilitation & Improvement Project (DRIP), Central Project Monitoring Unit (CPMU), Central Water Commission, Ministry of Water Resources, R.. Puram, New Delhi, inanced under World Bank Loan No.7943-IN and IDA Credit No.4787-IN, which comprises the Statement of Sources and Application of Funds and the Reconciliation of claims to Total Application of Funds for the year ended 31g March 2019. These statements are the responsibilities 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 accordance with the auditing standards promulgated by the Comptroller and Auditor General of India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statement. It also includes assessing the acounting 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 for the Darn Rehabilitation & Improvement Project (DRIP), Central Project Monitoring Unit (CPMU), Central Water Commission, RK. Puram, New Delhi for the year ended 31St March 2019 in accordance with Government of India accounting standmcs In addition, in our opinion, (a) with respect to the Statement of Expenditure, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursement of expenditure of Rs. 32.95 crore incurred under the project and (b) except for ineligible expenditure of Rs 0.53 crore as detailed in the audit observations appended to the audit report, expenditure of Rs. 32.42 crore are eligible for financing under the Loan / Credit Agreement. During the course of audit, Statement of Expenditure / Financial statement amounting to Rs. 32.95 crore were examined which can be relied upon to support reimbursement of Rs.25.94 crore under the Loan/Credit Agreement as per Annexure-1. 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. Director ej eral f udit (SD) Place: New Delhi Date: 1 / Phone: +91-11-23403652, 23403650 AVFTR / Fax : +91-11-23702353 Audit Comments on Certification Audit of "Dam Rehabilitation and improvement Project"(DRIP), Wold Bank Aided Project of CWC for the year 2018-19. General Comments: i. During audit of financial statements in respect of WB Aided "Dam Rehabilitation and Improvement Project" (DRIP) WB Loan No. 7943-IN and IDA Credit No. 4787- IN, for the period 2018-19, vouchers for expenditure amounting to Rs. 52,02,492/- were not made available to audit. Hence, the expenditure of Rs. 52,02,492/- has been disallowed. Project Management S.NO. Voucher No. Object Head Amount (Rs.) 1. CP0000554 Foreign Travel 15,34,406 2. CP00000141 Office Expenses 3,120 3. CP00000171 Office Expenses 1,596 4. CP00000172 Office Expenses 970 5. CP00000185 Professional Services 36,45,233 6. TA bill of Shri Bikram Domestic Travel 13,223 Kesharee Patra. expenses 7. TA bill of Shri Bikram Domestic Travel 3,944 Kesharee Patra. expenses Total 52,02,492 ii. No basic financial records, books of accounts, like Cash Book, Stock Register, Asset Register, TA Register, Advance Register etc., had been maintained by Central Project Management Unit (CPMU) for DRIP and the Statement of Expenditure had been prepared on the basis of expenditure booked by the Pay and Accounts Office/DDO, CWC, due to which the correctness of the expenditure incurred could not be verified in Audit. iii. Against voucher no. T-16131-1/05.12.18 amounting to Rs. 1,03,445/- in respect of bill for Transfer travelling allowance of Sh. Gaurav Singhai, Dy. Director, the amount is disallowed as expenditure does not pertain to DRIP. iv. Expenditure against voucher no. T-16870-1/25.03.19 amounting to Rs. 2,53,274/- in respect of Sh. Pramod Narayan, Director paid to Air India Pvt. Ltd. was misclassified under Domestic Travel Expenses instead Foreign Travel Expenses. Annexure-1 Statement showing the details of component wise expenditure incurred during the year 2018-19 in respect of World Bank assisted Dam Rehabilitation & Improvement Project (DRIP), Central Project Monitoring Unit (CPMU), Central Water Commission, Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR,RD&GR), 3rd Floor New Library Building, R.K. Puram, Sector-1, New Delhi. (Statement-A) (Amount in Rs. omponent SOE Actual Expenditure Expenditure Percentage Amount Expenditure Expenditure as disallowed in admitted in admissible Reimbursable verified in Audit Audit (Rs.) Audit as per on amount of agreement expenditure admitted in audit Rehabilitation 0 0 0 0 8O% 0 d iprovernent e das. (Darn : Institutional 71036614 71036614 0 71036614 80% 56829291 trengthening Project1 258498951 258498951 5305937 253193014 80% 202554411 M anagemnent Total 329535565 329535565 5305937 324229628 80259 Annexure-ll Statement showing the details of disallowances made from the expenditure incurred during the year 2018-19 in respect of World Bank assisted Dam Rehabilitation & Improvement Project (DRIP), Central Project Monitoring Unit (CPMU), Central Water Commission, Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR,RD&GR), 3rd Floor, New Library Building, R.K. Puram, Sector-1, New Delhi. (Statement-B) Components of Reasons for disallowance Amount Expenditure disallowed (Rs.) 1: Dam Rehabilitation Nil 0 & Improvement Project (DRIP) New Delhi II: Institutional Nil 0 strengthening Ill: Project During audit of financial statements in respect of 52,02,492/- Management WB Aided "Dam Rehabilitation and Improvement Project" (DRIP) WB Loan No. 7943-IN and IDA Credit No. 4787- IN, for the period 2018-19, vouchers amounting to Rs. 52,02,492/- were not made available to audit. Against voucher no. T-16131-1/05.12.18 1,03,445/- amounting to Rs. 1, 03, 445/- in respect of bill for Transfer travelling allowance of Sh. Gaurav Singhai Dy. Director, the amount is disallowed as expenditure does not pertain to DRIP. Total 53,05,937/- Statement showing the details of Reconciliation of claims of total application of funds during the year 2018-19 in respect of World Bank assisted Dam Rehabilitation & Improvement Project (DRIP), Central Project Monitoring Unit (CPMU), Central Water Commission, Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR,RD&GR), 3rd Floor New Library Building, R.K. Puram, Sector-1, New Delhi. (Amount in Rs.) Schedules Current year A 32,95,35,565 B 53,05,937 C 32,42,29,628 D 25,93,83,702 Total expenditure made during the year (A)= Rs.32,95,35,565 Less: Ineligible expenditure (B)= Rs. 53,05,937 Total Eligible expenditure (C) =Rs. 32,42,29,628 Amount reimbursable by bank (D)=Rs. 25,93,83,702 Dy. Director (EA)