~qhttr4-06FFJA1T-nr4fFIM-1 INgA2Ol81 ut.W F 022-2203 3018 mw IWR-z w T 22190500 TfdqT T4, 101, w 14 up, - 400 020. Telephone] 2219 0549 INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL E-ma agauMaharashtral@cag.gov.in X (AUDIT)-I, MAHARASHTRA. Pratishtha Bhavan, 101, Maharshl Karve Marg, WqT/No. Mumbal - 400 020. faiWi/Date:.2 f2.0 To, The Project Manager (RSPMU),' Water Supply & Sanitation Department, Reform Support & Project Management Unit, CIDCO Bhavan, 1" floor, South Wing, C.B.D. Belapur, Navi Mumbai - 400 614. (WffrMrY-1)-W0YT T 5375-IN * q4 2018-19 * # WF 7ftwT wumq--34 Please find enclosed the Audit Certificate in respect of World Bank Assisted Maharashtra Rural Water Supply & Sanitation (Jalswarajya-II)Program- Credit No. 5375-INfor the year 2018-19along with the annexure 'A' & 'B' for Z159,46,44,496/- (Rupees One Fifty Nine Crore FortySixLakh Forty Four Thousand Four Hundred and Ninety Six only) The following documents are also forwarded in addition to the audit certificate:- 1. Statement of Sources and Applications of Funds (Annexure I) 2. Reconciliation of Claims to total Applications of Funds (Annexure 11) 3. Summary of Sources & Application of Funds by Components for the entire Project. 4, Certified copies of statement of Sources and Application of funds, implementing agency wise under the jurisdiction of Pr. Accountant General (Audit) 1, Mumbai. 5. Statement showing the details of expenditure incurred by the various implementing agencies that were audited for the year 2018-19. 6. Statement showing inadmissible amounts of earlier period now held admissible based on compliance received during current audit as certified by the Local Audit Party. 7. Management letter on the issues observed during the audit of World Bank Assisted Jalswarajya-II Program, Maharashtra Rural Water Supply & Sanitation Program - Credit No. 5375-IN for the year 2018-19. 8. Part Audit Certificate from Accountant General (Audit-Il), Nagpur along with Annexure related to objected amount. Kindly acknowledge the receipt of the above documents. EPRT.a.flA1 Fx022-2203 30 18 Vff 922190500 7tWWt Wq, 101, 46 W9, - 400 020. Telephone 1 2219 0549 INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL E-mail I agauMaharashtral@cag.gov.in (AUDIT)-I, MAHARASHTRA. Pratishtha Bhavan, 101, Maharshi Karve Marg, TiIT/No. Mumbal - 400 020. fk*w/ Date : Report on the Project Financial Statements We have audited the accompanying financial statements of the World Bank Assisted Jalswarajya-II Program, Maharashtra Rural Water Supply & Sanitation Program Credit No.5375-IN for the year 2018-19 which comprise the Statement of Sources and Application of Funds and the Reconciliation of claims to Total Application of Funds for the year ended 31"t March 2019. 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 of 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 the 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 World Bank Assisted Jalswarajya-lI Program, Maharashtra Rural Water Supply & Sanitation Program -Credit No. 5375-IN for the year ended 31" March 2019, in accordance with Government of India Accounting Standards. In addition, in our opinion, (a) with respect to SOEs, 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 Jalswarajya-Il Program, Maharashtra Rural Water Supply & Sanitation Program -Credit No. 5375-IN. During the course of the audit, SOEs for ? 159,46,44,496/- (Rupees One Fifty Nine Crore Forty Six Lakh Forty Four Thousand Four Hundred and Ninety Six only)and the connected documents were examined and these can be relied upon to support reimbursement under the Credit No.5375 - IN(Annexure A). (Amount Objected Z 36,44,336/- is shown in Annexure B) This report is issued without prejudice to Comptroller & Auditor General's right to incorporate the audit observations in the Report of Comptroller & Auditor General of India for being laid before Parliament/State or UT Legislature. 3ANt-N\'00# Annexure - 'A' Expenditure incurred in respect of World Bank Assisted Jalswara*va-II Program, Maharashtra Rural Water Supply & Sanitation Program- Credit No. 5375-IN for the year 2018-19 Name of the Office Amount of expenditure incurred on the project (in Z) Office of the Pr. Accountant General (Audit)-1, 151,76,19,983 Maharashtra, Mumbai Office of the Accountant General (Audit)-1, 7,70,24,513 Maharashtra,Nagpur TOTAL 159,46,44,496 Sr. Audi Officer/EAP CA Cell Annexure'B' Details of amount held under objection as a result of local audit in respect of World Bank Assisted Jalswarala-II Propram, Maharashtra Rural Water Supply & Sanitation Program Credit No. 5375-IN for the year 2018-19. Name of the Para Amount of Impementing Agency No objection Name of the office (in Z) Nature of objection Office of the Pr. Accountant General (Audit)-I, Maharashtra, Mumbai Excess quantity executed for GSDA, Jalgaon 4 1650457 works assigned to Contractor Non remittance of Interest to ZP, Raigad 5 838959 Revenue Head Non remittance of Interest to ZP, Palgar 5 31379 Revenue Head Non remittance of Interest to ZP, Thane 5 55422 Revenue Head Non deduction of Income Tax and ZP, Ahmednagar 6 152436 GST Non Levy of Penalty in respect of ZP, Jalgaon 7 469522 Works assigned to Contractor TOTAL 3198175 Office of the Accountant General (Audit)-II, Nagpur 446161 As per details enclosed GRAND TOTAL 3644336 Sr. Audi officer/EAP CA Cell Details of inadmissible amounts of earlier years certification held admissible based on compliance during current audit in respect of World Bank Assisted Jalswarajva-ll Program, Maharashtra Rural Water Supply & Sanitation Propram Cr. No. 5375-IN for the year 2018-19 Name of the Sr.No. Implementing Agency Year Para No. Amount(in Z) Office of the Pr. Accountant General (Audit)-I, Maharashtra, Mumbai MEETRA 2017-18 3 83896 Divisional Commissioner, Pune 2017-18 3 14998 GSDA, Solapur 2017-18 3 37803 MJP (Div. Karad) 2017-18 4 7873723 MJP (Div. Ratnagiri) 2017-18 8 60528 ZP, Dhule 2017-18 1 25241 ZP,Pune 2017-18 1 25000 ZP, Ratnagiri 2017-18 1 98775 ZP, Ahmednagar 2016-17 2 66580 TOTAL Office of the Accountant General (Audit)-II, Nil Nagpur I GRAND TOTAL 8286544 Sr. Audit Oficcr / EAP CA Cell -spe-r?4 P ACCOUNTANT GENERAL (AUDIT) -l, MAHARASHTRA, NAGPUR - vK -44# No. FAW-1(SFR)/WBAPI Dated:-22/01/2020 To, The Dy. Accountant General (Admn.) O/o. The Pr. Accountant General (Audit)-l, Pratishtha Bhavan, 101, Maharshi Karve Marg, Mumbai- 400020. Subject:- Issuance of Part Audit Certificate in r/o. Maharashtra Rural Water Supply and Sanitation Programme (Jalswarajya-II Project) Credit No. 5375- IN for the year 2018-19. Reference:- Letter No. EAP/CA(Cell)/WBA/Jalswarajya-II/AC-2018-19/144 dated 26/11/2019 Sir / Madam, With reference to the letter on the subject above, I am to forward Part Audit Certificate for the year 2018-19 as per details shown below. (Figure in Rupees) All 19 Z.P. Units + 3 19 GSDA Units Total (Rs.) Dy. Comm. + 3 Dy. Director Total SOE figure 66061349 11206074 77267423 Total Certified Expenditure 65818439 11206074 77024513 However, an amount of Rs.4,46,161/- is held under objection, on account of various deficiencies such as inadmissible/irregular expenditure, non production of vouchers/utilisation certificate etc. in 44 implementing agencies, as per details shown in the enclosed statement. In addition, Audit opinion in respect of all implementing units is enclosed as desired. Encl:- 1. Audit Opinion. 2. Abstract. 3. Statement of admissible expenditure (Z.P. Units) 4. Statement of admissible experditur. (GSDA Units) 5. Annexure related to objected amount. 6. Annexure related to paras outstanding since previous year. Yours faithfully, Dy. Acco4ntant General (RS & S) '4tffqtl qq-,W At T.220, RftF W -440001 'Audit Bhavan',Post Bag No. 220, Civil Lines, Nagpur-440001 VWl Telephone - 0712-2564506 To 2564510 website: http://agmaha.cag.gov.in twr / Fax - 0712-2524130 e-mail: agaumaharashtra2@cag.gov.in Report on the Project Financial Statements We have audited the accompanying financial statements of the Maharashtra Rural Water Supply and Sanitation Programme (Jalswarajya-II), which comprise Statement of Sources and Applications of Funds and the Reconciliation of Claims to Total Applications of Funds for the year ended 31st March 2019. 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 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 of 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 applications of funds of Maharashtra Rural Water Supply and Sanitation Programme (Jalswarajya-II) for the year ended 31st March 2019 in accordance with Government of India accounting standards. In addition, in our opinion, (a) with respect to SOEs, 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 appended to this audit report, expenditures are eligible for financing under the Loan/ Credit Agreement. During the course of the audit, SOE of Rs.7,72,67,423/- and the connected documents were examined and these can be relied upon to support reimbursement wider the Loan/Credit Agreement subject to actual amount is certified for Rs.7,70,24,513/- and the amount held under objection is Rs.4,46,161/- as per statement attached herewith. This report is issued without prejudice to CAG's right to incorporate the audit observations in Report of CAG of India for being laid before Parliament/State or UT Legislature. Dy. Acco ntant Generall RS SFR Staement Showing admissible amount in r/o. Zilla Parishad Units under WBA Mah. Rural Water Supply and Sanitation (Jalaswarajya-II)-Project Cr. No. 5375 IN, for the year 2018-19. (All figures in rupees) Sector Strengthening Implementing Total SOE Name of Implementing (SS) Admissible Softwate (IS) AdisseTotal SOE a l ( unt - (lowest of (lowest of admissible held under Agency Z.P. Districts As per As per col. 2,3) As per As per col. 5,6) (SS+IS) (SS+IS) objection) SOE Audit SOE Audit 1 2 3 4 5 6 7 8 9 10 NANDED 3439507 3439507 3439507 1531824 1531824 1531824 4971331 4971331 0 AURANGABAD 2904030 2661120 2661120 2726720 2913270 2726720 5630750 5387840 0 PARBHANI 2298028 2298294 2298028 0 0 0 2298028 2298028 0 LATUR 3212833 3264483 3212833 0 0 0 3212833 3212833 0 HINGOLI 1265210 1265210 1265210 0 0 0 1265210 1265210 0 JALNA 2801801 2802066 2801801 0 0 0 2801801 2801801 0 OSMANABAD 1514051 1514051 1514051 0 0 0 1514051 1514051 0 BEE) 2726494 2726494 2726494 0 0 0 2726494 2726494 NAGPUR 2929018 3265360 2929018 1922325 2162066 1922325 4851343 4851343 28515 CHANDRAPUR 2117433 2423313 2117433 1831782 2130181 1831782 3949215 3949215 0 BHANDARA 2306542 2306542 2306542 0 0 0 2306542 2306542 0 WARDHA 2245906 2246171 2245906 0 0 0 2245906 2245906 0 GONDIA 3425593 3426212 3425593 0 0 0 3425593 3425593 0 GADCHIROLI 1979500 1979766 1979500 0 0 0 1979500 1979500 25777 AMARAVATI 3405163 3405429 3405163 1889698 1889698 1889698 5294861 5294861 0 BULDANA 4224690 4224690 4224690 1214557 1214557 1214557 5439247 5439247 176090 WASHIM 1741656 1741656 1741656 0 0 0 1741656 1741656 0 AKOLA 2555831 2555831 2555831 0 0 0 2555831 2555831 50509 YAVATMAL 3406359 3406978 3406359 0 0 0 3406359 3406359 49871 Dy. Comm. Aurangabad 1055305 1055570 1055305 0 0 0 1055305 1055305 0 Dy. Comm.Nagpur 1493948 1603957 1493948 0 0 0 1493948 1493948 0 Dy. Comm. Amaravati 1895545 1895545 1895545 0 0 0 1895545 1895545 0 GRAND TOTAL 54944443 55508245 54701533 11116906 11841596 11116906 66061349 65818439 330762 Sr. Audit Officer / FAW-I (SFR) Staement Showing admissible amount in r/o. GSDA Units under WBA Mah. Rural Water Supply and Sanitation Programme (Jalaswarajya-lI)-Project Cr. No. 5375 IN, for the year 2018-19. (All figures in rupees) Name of Implementing Remarks (Amount GSDA Unit of As per SOE As per Audit Adisileheld under District objection) (Sr. Geologist) 1 2 3 4 5 NANDED 0 0 0 0 AURANGABAD 4593651 5224506 4593651 0 PARBHANI 20000 20000 20000 0 LATUR 15000 16150 15000 0 HINGOLI 0 0 0 0 JALNA 0 5688 0 0 OSMANABAD 12321 12321 12321 0 BEED 118690 118690 118690 0 NAGPUR 186380 246918 186380 11500 CHANDRAPUR 0 59542 0 0 BHANDARA 0 6511 0 1018 WARDHA 0 0 0 GONDIA 0 6444 0 2309 GADCHIROLt 14121 14121 14121 6270 AMARAVATI 3580145 3777992 3580145 47291 BULDANA 2627082 3464573 2627082 26695 WASHIM 0 0 0 0 AKOLA 0 0 0 4196 YAVATMAL 0 14581 0 0 Dy. Dir. GSDA 0 0 Aurangabad 0 0 Dy. Dir. GSDA 982 1247 Na&2ur 982 0 Dy. Dir. GSDA 37502 Amrvt 37702 55204 16120 Arnaravati 37702 GRAND TOTAL 11206074 13044488 11206074 115399 Sr. Audit Officer I FAW-I (SFR) -ZP. IS) 66061349 67349841 65818439 330762 11206074 13044488 11206074 115399 GUdkW 77267423 80394329 77024513 446161 Sr. Audit Officer ! FAW-I (SFR) Annexure (Al) Statement showing amount under obiection pertaining to Zilla Parishad Units Year 2018-19 Sr. Name of Para Nature of objection Amount No. Unit Objected 1. Zilla Parishad I Irregular expenditure of Rs 28515/- 28,515/- Nagpur 2. Zilla Parishad I Non Credit of Interest of Rs 25777/- 25,777/- Gadchiroli 3. Zilla Parishad 1 Noncredit of interest of Rs. 176090/- 1,76,090/- Buldhana in to Government Account 4. Zilla Parishad I Non-credit of interest of Rs. 50509/- 50,509/- Akola into Government Account 5. Zilla Parishad I Noncredit of interest of Rs. 49871/- 49,871/- Yavatmal into Government Account Total 3,30,762/- Sr. Audit Officer / FAW-I (SFR) Annexure (A2) Statement showing amount held under objection pertaining to GSDA units Year 2018-19 Sr. Name of Unit Para Audit Objection Objected No. Amount 1. Sr.Geologist, 1 Irregular payment of Rs. 11,500/- 11,500/- GSDA, Nagpur incurred on Work shop 2. Sr.Geologist, 2 Non credit of interest. 1,018/- GSDA, Bhandara 3. Sr.Geologist, 2 Irregular payment of Rs26695/- 26,695/- GSDA, Buldhana 4. Sr.Geologist, 2 Irregular payment of Rs 49291/- 47,291/- GSDA, Amravati 5. Dy Director, 3 Irregular payment of Rs 16120/- 16,120/- GSDA, Amravati 6. Sr.Geologist, 2 Non credit of interest in Govt 6270/- GSDA, Gadchiroli. account. 7. Sr.Geologist, 2 Non credit of interest in Govt 2,309/- GSDA, Gondia account. 8. Sr.Geologist, I Non credit of interest in Govt 4,196/- GSDA, Akola account. Total 1,15,399/- Sr. Audit Officer / FAW-I (SFR) Annexure (BI) Paras Outstanding from previous years Year 2018-19 Sr. Name of Unit Year Para Nature of objection No. No. 1. Zilla Parishad 2015-16 1 Inadmissible payment of project Bhandara allowance 1.30 Lakh 2016-17 1 Non crediting of interest of 1.54 Lakh into Govt. accounts 2. Zilla Parishad 2016-17 1 Non credit of Interest of Rs 9567/- Gadchiroli 2017-18 1 Incorrect picture of interest and other misc receipt of Rs 69382/- 2 Non credit of interest of Rs 25777/- 3. Zilla Parishad 2016-17 1 Non crediting of interest of Rs 69644/- Wardha into Govt. accounts 2017-18 1 Non crediting of interest of Rs 39569/- into Govt. accounts 4. Zilla Parishad 2016-17 1. Non crediting of interest of Rs. 139401/- Akola 2017-18 1 Non crediting of interest of Rs. 54452/- in Govt accounts and irregular maintenance of cash book 5. Zilla Parishad 2016-17 1 Non crediting of interest of Rs. 2,76,768 Buldhana 2017-18 1 Non crediting of interest of Rs. 1,55,247/- 6. Zilla Parishad 2015-16 2 Non refund of interest of Rs. 2,29,627 Yeovatmal 2016-17 1 Non crediting of interest of Rs. 1,14,237 7. Zilla Parishad Beed 2016-17 1 Non crediting of interest of Rs 84677/- to Govt account. 8. Zilla Parishad Jalna 2017-18 1 Non crediting of interest of Rs 317367/- Sr. Audit Officer / FAW-I (SFR) Annexure (B2) Paras Outstandine from previous years Year 2018-19 Sr. Name of Unit Year Para Nature of objection No. 1. Sr Geologist, 2015-16 1 Irregular expenditure incurred on GSDA, diesel on Govt. vehicle of Rs Bhandara 32193/- tinder WBAP 2015-16 2 Irregular payment op travel agency of Rs.47989/- 2. Sr Geologist, 2015-16 1 Irregular expenditure incurred on GSDA, Wardha diesel of Govt vehicle of Rs.31947/- under WABP 2016-17 1 Irregular payment of vouchers worth Rs 38250/- Sr Geologist, 2017-18 3 Short credit of interest of Rs 3818/- GSDA, Gondia Sr Geologist, 2017-18 2 Short credit of interest of Rs 1557/- GSDA, Akola 4. Sr Geologist, 2016-17 1 Short credited interest of Rs 11238/- GSDA, Nanded into Govt Account 2017-18 1 Non credit of interest of Rs 9699/- into Govt. accounts Sr. Audit Officer / FAW-I (SFR) *Annexure I Exampie of a Statement of sources and Application of funds (Projects implemented by core government departments) Name of the Project: Jalswarajya-2 programme Loan/Credit/Grant No. : IDA5375 IN Statement of Sources and Applications of Funds Report for the year ended 2018-19 Rs. '000 Current Year Previous Year Previous Year Previous Year Previous Year 2018-19 2017-18 2016-17 2015-16 2014-15 Projecttodate Opening Balance, (if cash balances are controlled by the 2091372.50 1019700.71 338919.59 437326.35 25516.83 3912835.97 entity (A) i) (+ Opening Advance) 0.00 0.00 0.00 0.00 748.00 748.00 B) Receipts -.. . . Funds received from Government through Budget (These will include external assistance 1440000.00 1600000.00 988000.00 215000.00 500000.00 4743000.00 received by Government for the project.) Funds received directly by Project Implementing Authority through 0.00 0.00 0.00 -47494.00 0.00 -47494.00 external assistance (MJP &Chq return) Beneficiary Contribution (if any) Other Receipts during the year- Bank Int& Mise 577685.41 155975.11 14949.99 12938.07 1019.48 762568.06 receipts+Deposits+Adv GSDA Total Receipts (B) 2017685.41 1755975.11 1002949.99 180444.07 501019.48 5458074.06 I Sources (C = A + B) 4109057.91 2775675.81 1341869.58 617770.42 527284.31 9371658.03 Expenditures by Component A. 1594887.41 684303.32 322168.88 278850.83 89958.00 2970168.43 B. 0.00 0.00 0.00 C. Other - 0.00 0.00 0.00 0.00 D-Refund Deposits 0.00 0.00 0.00 0.00 Total Expenditures (D) 1594887.41 684303.32 322168.88 278850.83 89958.00 2970168,43 *Closing Balance, (if cash balances are controlled by the 2514170.50 2091372.50 1019700.71 338919.59 437326.31 6401489.60 entity) (C-D) Notes: 1. Information about the basis of preparation of the financial statements with regards to the Financial Rules 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 ofunreconciled amounts to be furnished. 3. Named of accounting units whose financial statements are aggregated to prepare the consolidated accounts. 4. Any other project specific Note. 5 *Closing Balance Amount Rs.2514170500/- including Actual Closing Balance of Trial Bal.Rs.104,35,78,121/-, Revenue Receipt Remitted in Govt.A/c. Rs.177,28,873/-,bank charges Rs.30240, deposite return Rs.46324900/- Remittance from Implementing Agencies Rs.591969610/, Remittance Rs.36,66,90,804/- 6. Advance Receivable During the year Rs.46,50,68,461/- Finance Controler DDO IRS MU. Belapur, Navi Mumbal- Annexure 2 Reconciliation of Claims to Total Application of Funds Name of the Project: : Jalswarajya-11 programme Loan/Credit/Grant No. IDA5375 IN Reconciliation of Claims to Applications of Funds Report for the year ended -2018-19 J uILU-iL Amt,(Rs. '000) Previous Current Year Yer PreviousYear Previous Year Previous Year 2018-19 2016-17 2015-16 2014-15 Projecttodat Bank Funds claimed during the I year (A) -- --- --- --- Total Expenditure made during the year (B)Other Expd --- --- --- --- -- -- Less: Outstanding AC Bills C 11 --- --- Ineligible expenditures (D) Ill Expenditures not claimed (E) IV --- --- --- ----- - Total Eligible Expenditures Claimed (F)=(B)-(C-(D)-(E) --- -- --- -- --- --- World Bank Share @x% of (F) above (G) --- --- --- --- ------ (Fin Ctro NOTE:- AMOUNT RECEIVED AS PER APPROVED DISBURSMENT LINKED INDICATIOK.