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                                                                                             INDIAN AUDIT AND ACCOUNTS DEPARTMENT
                                                                                             OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (GENERAL AND SOCIAL SECTOR AUDIT) RAJASTHAN
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~         : 2385430-39,2385131,2385232                                                   ~   : 0141-2385181                                    t-~ : agaurajasthan1 @cag,gov.ln
Telephone : 2385430-39, 2385131, 2385232                                                 Fax: 0141-2385181                                     E-mail: agaurajasthan1@cag.gov.ln
                                                                                          Annexure 4



            Report of the Comptroller and Auditor General of India

The Additional Chief Engineer
And Nodal Officer,
SPMU-NHP, Water Resources,
Sichai Bhawan JLN Marg,
Jaipur- 302017

Report   on the Project   Financial   Statements

      We have audited the accompanying financial statements ofthe National Hydrology project (Loan
No- 8725-ln) which comprises the Statement of Sources and Application                  of Funds and the
Reconciliation   of Claims to Total Application of Funds for the year ended 31-03-2018. These
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 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 from 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
application of funds of National Hydrology project (Loan No- 8725-ln) for the year ended 31-03-2018
in accordance with Government of India accounting standards.
      In addition, in our opinion, (a) with respect to SOE's, 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, if any, appended to this
audit report, expenditures are eligible for financing under the Loan / Credit Agreement. During the
course of the audit, SOEs / FMRs 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 the CAG of India for being laid before Parliament/State or UT Legislature.




                                                         Dy. Accountant    General   / G.S.S.-J
.~                                                                                     Annexure-l

                  Statement of Sources and~1f''OfFunds
                       (projects implemented by core go~artments)
                                                          . .--..-=:


                                                                       ~.

     'Name of the Project : NATIONAL HYDROLOGY'PR~JEcr
     Loan No.               : 8725-IN
     Statement of Sources and Applications of Funds
     Report for the year ended 31st March 2018
                       Particulars                      Current             Previous    Project to
                                                         Year                              date
      Opening Balance, (if cash balances are                                            9608560.75
      controlled the




      Notes:
         1. Information about the basis of preparation of the financial statements with regard to
            the Financial Rues and Codes applicable.
         2. The above figures will be based on monthly/quarterly abstract accounts prepared by
            the accounts compiling offices, duly reconciled by the respective DDOs, with details
            of unreconciled amounts to be furnished.
         3. Names of accounting units whose financial statements are aggregated to prepare the
            consolidated accounts.
         4. Any other projects specific Note.
                                                                .;.....

                                                                                   Annexure-2

                                                             JfJIil~UJiS of Funds
                Name of the Project : NA                         iiI!;:QSV· -PROJECT

                                     Loan No.:
                       Reconciliation of Claims to
                            Report for the year ended:31st
                                                                                  .)

                                           Schedules .Current   Year                   Projectto date

Bank Funds claimed during the year (A)     I                                           74302179.75



                                                                                       4270519.00


Less: Outstanding AC Bills (C)             II                                          150829.00

                                           In.
      Expenditures not claimed {E)         IV

Total Eligible Expenditures Claimed                                                    4119690.00

(F)= (B)-(C)-(D)-(E)


                         (F)
World Bank Share @...o/oOf                                                             NIL
(G)




   Date
   Notes:
       1. Total expenditure made during the year (B above) must be the same as the Total
          Expenditures shown on the Statement of Sources and Applications. of funds (D.on the
          Statement of Sources and Applications of Funds).
       2. Outstanding AC Bills (C above) reflect funds drawn against AC bills that have been
          booked as expenditure but not settled by the end of the year (ie unsettled advances).
          The project should show in S9,heduleIl the opening balance of unsettled AC bills. AC
          bills drawn during the year. AC bills settled during the year, and AC.bills unsettled at
          the end of the year.
       3. Expenditure not claimed (E above) may reflect timing differences for eligible
          expenditure incurred during the year but claimed after the year end.
       4. Amounts A and G above must be equal.
                                                                                                    Annexure -3

        ~CE
       ...             OF THE CHIEF ENGINEER "
       ,            & NODAL OFFICER, SPMU-NHP;
                       '.                             JAUDP~-
                                                                                                    Date:--




           ·To
                                                                                         ",'


           Senior Audit Officer/CACell
           Indian Audit and.Accounts Department,
           O/Q The Principal Accountant General .ieueraJ.,$~~ ~~~tor               Audit)
           Raj3sthan Jaipur,                   '


           This assertion letter is provided in connection
1
           the NaUmiaJ: HydrOlogy Preleetfor the year                          ~~2..        We acknowledge our
,i
.1         responsibi!itY'for'~~e1entation         of the '                            , accordance with the 'case
           basis of acco~ifQno\Ved        by the     ", ,                              confirm, to he best 'of our
 I
 ! .       knowledge andbelief, the following representanea


            •    The project financial statements are free ofmateriiaf;    t[teDteIi1s. including omission.
            •    Project funds have been used for the purposes                          provided.
            •    Project expenditur.esare eligible for financing,                     _ ~ent.
            •    There have been no irregularities involvingr;ijia_~ent          or employees who have a
                 significant role in internal control or that coUIi~'ama.terial·          effect on the, project
                 financial statements.                              ,"                       "
            •    We have made available to you all books of~,~:                    supporting 'documentation
                 relating ,to the project..*:~;tf;;?;:)'                 ~,.::
            •    The Project has complied with the conditio~;~~~i~;am    l~agreements,   including
                 the Financing Agreement, the Project Agreem": the Project AppraiSal Document, the,
                 Minutes of Negotiations; and the Borrower's Project,
                 Implementation Plan.




                 (Senior Executive Officer)




                 (Senior FiP&l~aL~~~
                       ~.'\j\.~tt'~"~.I.~t4~f.   W~

                             ,          ~~
                                 Audit Observations

1.      Irregular inclusion of non-reimbursable amount for Rs. 21.35 lakhs

        Scrutiny of the records of National Hydrology project(Loan No. 8725-IN) revealed that
an amount of Rs. 42,70,519 was spent on work-Shop and training during the year 2017-18.
Whole amount was included for reimbursement claim from world Bank. As per letter of Govt.of
India No. F.No. x-9202/1/2016-NHPIl118-1258     dated 23.06.2016 "Fifty percent of the amount
will come as world Bank Loan and the remaining 50% as budgetary support form Government of
India for both the stage."

       Hence an amount       of 21,35,259   (50% of Rs.42,70,519)     does not qualify    for
reimburnement.


                                                            ~~~-~.
                                                    Dy. Accountant General / G.S.S.-I