AUDITOR'S REPORT Audit Completion Date: 10.12.2019 The Secretary Ministry of Local Government, Rural Development & Cooperatives Local Government Division, Bangladesh Secretariat, Dhaka-1000 We have audited the accompanying Financial Statement (FY 2017-2019) of the "Income Support Program for the Poorest (ISPP) Project" financed by IDA credit no.5553-BD as of 30th June, 2019 and for the year then ended According to ISSAI 1570 the preparation of Financial Statement is the responsibility of management. Our responsibility is to express an opinion on the financial statement based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures 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. In our opinion and according to the statement of ISSAI, the financial statement gives a true and fair view in all material aspects of the financial position of "Income Support Program for the Poorest (ISPP) Project" financed by IDA credit no.5553-BD as of 30t" June 2019 and the result of its operation and cash flows for the year ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. The project accounts properly present the expenditure and receipts for the year ended at 30th June, 2019. Revised opinion Status: Unqualified. (Tasalema ISltana) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 88-02-9361788 [Ref Project Audit Manual, FAPAD. Page: 4.7.1] ISPP-2018-2019 5 Income Support Program for the Poorest (ISPP) Jawtuo Project (IDA Credit No. 5553) Project FlnanciabSatmet o 3'.June..2019 Final (Figure In i.kh Taka) inception to Forthe year Inception to Resources Notes 30th June, 20 30th June, Remarks 2018 2019 Government of Bangladesh 1 124.73 58.28 i83.01 Loan from Development Partner 2 6,803.19 20,640.55 27,443.74 Other Sources 3 - Opening Account Balance 4 2,072.45 Total Resources 6,927.92 22,771.28 27,626.75 Revenue Expenditures 3111101 Basic Pay (officer) 42,99 17,39 60.39 3111201 Basic Pay (staff) 5.16 2.23 7.39 3111302 conveyance Allowance 0.14 0.07 0.21 3111306 Education Allowance 0.53 0.06 0.59 3111310 Housing rent Allowance 21.61 5,56 27.17 3111311 Medical allowance 1.54 0.72 2.26 3111312 Mobile/Cell Phone Allowance 0.45 0.19 0,64 3111313 Telephone Encashment - 0.57 0,57 3111314 Tiffin Allowance 0.10 0.05 0.15 3111325 Festival Allowance 7,93 3,36 11.29 3111328 Rest and Recreation 1,50 0.76 2.27 3111331 Refreshment Allownce 0.20 0.31 3111335 Nobobarsha Allowance 0,82 0,33 1.14 3111338 OtherAllowances 0.58 9.57 10,15 3111342 Transport Allowance 13.30 12.00 25.30 3211102 Cleaning & Washing 2.841 0.95_378 3211106 Entertainment 3,391 i'9 5.08 3211109 Labour Wages 001m- 0.011 3211113 Electricity 0.02 0,13 0.15 3211116 Courier -1 0.18 0.18 3211117 Internet/Faxelex 2.57 1.42 3,99 3211119 Postage 0.11 0.01 0.12 3211120 Telephone 1.24 0.46 1.70 3211125 Advertising & Publicity20.14 8.41 28.55 3211127 Books & periodicals 0.17 0.97 1.14 3211129 Office Building Rental 14.09 5.89 19.98 3211130 Conveyance Expenditure 0.62 0.32 0.94 3211131 Outsourcing 18,94 10.77 29.701 3221106 Fright &Transport Charges - 0,40 0.40 3221107 Copying Charges 0.22 0.72 0.94 322110B Bankcharges 4.78 0.35 5.13 322109 Management Charges 16.22 156.00 172.22 3231301 Training 140.32 49.89 190.21 3243101 Petrol,oll and lubricants 6.60 4.58 11.18 3244101 Travel Epenses 4.65 16.46 21.12 3255101 Computer Consumables 3.50 1.44 4.94 Hk a bbil Kabir XU eg CI d~"~ e L" laBMi soBn e cretary)OI 1W nisr ofL D (Figure in Lakh Taka) Inception to For the year Inception to Resources Notes 30th June, 30thJune, Rerarks 2018 2019 3255102 Printing and Binding 4.72 15.27 19.99 3255104 StampSea0 0.67 0.01 1Nl8 3258105 Othertatoneeiy 4.56 0,66 5.23 325101 Co.Unsutuc 3,276.24 1,581.33 4,857.57 3257206 H-onoralum /Remuneration 8.94 4.10 13.05 3258101 R &M Motor vehicie 5.80 1.30 7.10 3258102 Ri & M Furniture 0.01 0.13 0,14 3258103 it & M Computer 0.67 0.71 1.38 3258104 R &M Office equipment 0,05 0.66 07 3258119 R & M Eictrical Installations - 0.16 0.16 3258127 Rt & M Fittings & Fixtures 16.44 0.23 16.67 3631107 Special Grant 402.88 4,980.72 5,383.60 3821116 Insurance 1.18 1.93 3.11 3911111 General Reserve - - sub-Total (Recurrent)) 4,059.31 6,901.89 10,961.20 4 Capital Expenditures _ 41 Fixed Assets 4112 Machinery and Equipment 4112101 MotorVehicle 122.71 122.71 4112201 ICT Equipments 337.71 337.71 4112202 Computers and Accessories 240.73 0.93 241.66 4112303 Electrical Equipments 9.08 9.08 4112310 Office Equipments 4.50 4.50 4112314 Furniture 81.43 (2,76) 78.67 Sub-Total (Caltal) 796.16 (1,83) 79433 Grand Total 4,855.47 6,900.06 11,755.53 Closing Balance: Imprest Account -_0.00 0.) 0.00 RPA Fund 2,072.45 15,871.22 15,871.22 GOB Fund 0.00 0.00 0100 niture and cash 692792 22,771.28 27,626,75 Totib Ka Exen tbr L 0 m IsP-AWTNO Projet GuvaiflAtvav itstiitMt..0jiAl 9 05 et o I at - tteV4 Urban Resilience Project(URP) Project Coordination and Monitoring Unit (PCMU) NOTES TO FINANCIAL STATEMENT 30th June, 2019 1. GOVERNMENT OF BANGLADESH Fund are allocated by the Government of Bangladesh to cover GOB's share of eligible project expenditures, as specified in the Project Proforma and In the Annual Development Programme for each 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 contribution to the project since Inception are as follows (in Lakh Taka), Inception to 30th For the Year Inception to 30th June 2018 2018-2019 June 2019 Allocated by GOB 18.66 59.50 78.15 Less: Un-utilized by Project 14.42 12.28 26,70 Total: Actual expenditure 4.23 47.22 51.45 2. LOAN FROM DEVELOPMENT PARTNER 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 (In Lakh Taka) inception to 30th For the Year Inception to 30th June 2018 2018-2019 June 2019 Initial Deposit (Advance) 90.00 - 90.00 DPA (Direct Payment) - . RPA (SOE Procedure) 360.00 1,200,00 1,550.00 RPA (Non SOE Procedure) Others - Total: 440.00 121,200.00 1,640.00 3. OTHER RESOURCES Not Applicable Other resources consist of the following: Inception to 30th For the Year inception to 30th June 2018 2018-2019 June 2019 Project Revenues, Exchange gains/ osses Total: 4. CASH The project maintains two bank account, an CONTASA bank account for RPA fund, which Is kept at Janata Bank Ltd,Shere e Bangla Nagar Branch to hold funds advanced by IDA, and an operating accounting, which is kept at Janata Bank Ltd,Shere e Bangla Nagar Branch also to hold funds advanced by GOB . Year end cash balances were as follows (In Lakh Taka): Inception to 30th For the Year Inception to 30th June 2018 - 2018-2019 June 201 9 Imprest Account -- Operating Account (RPA) 63.14 662.21 662.21 Oerating Account (G - - Total: 63.14 662.21 662.21 Md. Khayrul Hasan MID. ZAFAR ULLAH Director General/Project Director Directo, URP: PCMU E:IURP ProjectlMATInURP Audit 2018-19juRP Audit FS (2018-2019) .xls P'oramnimq MionA, Planning cmasiWss Govi. of People's Republic of Bangladesh AUDIT OPINION ON SOE We have audited the Statement of Expenditure (SOE) of the "Income Support Program for the Poorest (ISPP) Project" financed by IDA credit no.5553-BD as of 30tl June, 2019 and for the year then ended. The audit was conducted following international standards on auditing which includes tests of the accounting records and supporting documentation. Withdrawals/ SOE Particulars: The particulars of withdrawal on the basis of Statement of Expenditure (SOE) as submitted to audit are attached herewith. The authority claims to the Donor amounting to Tk. 196,47,10,554.00 on the basis of SOE and disbursed by the Donor Tk. 2064,05,756.00 during the period 2018-2019. In our opinion, the presentation and submission of claim to IDA authority on the basis of expenditure statement (SOE) was valid and can be relied upon by IDA. (Taslema Sultana) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 88-02-8391548 ISPP-2018-2019 7 AUDITOR'S REPORTS ON SPECIAL ACCOUNT (CONTASA) 1. We have audited the Special Account Statement (CONTASA) of the "Income Support Program for the Poorest (ISPP) Project" for the year ended 3011 June 2019 under provision of IDA Credit No-5553-BD, dated February 9, 2015, 2, Our audit was carried out following International Auditing Guidelines. Accordingly, our audit included such review of system of Internal Control, test of the accounting records & supporting documentation, verification of accounts balances and other auditing procedures that we considered necessary under the circumstances, 3. The accompanying Special Account Statement was prepared on the basis of cash deposits & withdrawals for purpose of complying with the above Credit Agreement. 4. In our opinion the receipts are properly accounted for and withdrawals were made for the purpose of the project in accordance with the credit agreement and the above Special Account Statement gives a true and fair view of the beginning & ending balances and the account activity for the year ended 30111 June, 2019 on the basis of cash deposits & withdrawals. 5. The special account is being maintained according to the approval of Finance Division. The withdrawal of money is in accordance with authorization of Finance Division, (Tas ema SIlna) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 88-02-8391548 ISPP-2018-2019 8