Govern Nep Tel 977-015541686 Ministry of Physicat I tu#& Transport x : 977-015542532 Departm It of oads Email: dorfcb@dor.gov.np "RW Kupandol, Jwagal-10 Ref. No.25 \o" ROAD SAFETY SUPPORT PROJECT Lalitpur, Nepal Date: - 7 March 2018 Mr. Luquan Tian Task Team Leader The World Bank Nepal Country Office Yak and Yeti Hotel Complex Kathmandu. Sub: - Road Safety Support Project, (GRSP2 MDTF-GRANT NO -TF 018701) Audited Project Account, Fiscal Year - 2016/2017 (2073-2074) Dear Sir, Please find enclosed herewith a copy of Audited Project Account of Road Safety Support Project for the Fiscal Year 2016/2017 (2073/74) under the GRSP2 MDTF Grant No.-TFO 18701. Thanking You. Yours Sincerely, (Bimala Ad ikari) Account Officer Cc: Office of Auditor General, Babar Mahal. Ministry of Physical Planning and Works, Singha Durbar. Financial Comptroller General Office, Reimbursement Section, Anamnagar. Director General, Department of Roads, Babar Mahal. :4_ rs PPhone: 4258174 4266034 4255Y7 Office of th dGeneral4250 AOG. Fax : 977-1-4268309 Fax : 977-1-4262798 of te Post Box : 13328 Babar Mahal, Kathmandu, Nepal Ref. No.: 2074/75 - 502- Date: March 7,2018 INDEPENDENT AUDITOR'S REPORT The Secretary Ministry of Finance Singh Durbar, Kathmandu Report on the Financial Statements We have audited the accompanying Project Financial Statements including Statement Designated Account (and Statements of Expenditures SOEs) of the "Road Safety Support Project" financed by GRSP2-MDTF IDA Grant No. TFO18701 as at 15' July 2017 (31' Ashad, 2064) and for the year then ended and a summary of accounting policies and other explanatory notes. Management's Responsibility for Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with the Government of Nepal (GON) accounting policies and relevant practices. This responsibility includes: designing, implementing and maintaining internal control relevant to preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud and error. Auditor's Responsibility Our responsibility is to express an opinion on these Project Financial Statements based on our audit. We conducted our audit in accordance with the INTOSAI (International Organization of Supreme Audit Institutions) Fundamental Auditing Principles. Those Principles require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion Management letter highlighting areas for improving financial management is attached herewith. In our opinion, the Project Financial Statements including Statement of Designated Account, in all material respects, give a true and fair view of the financial position of the "Road Safety Support Project" as of 15th July 2017 (31a Ashad, 2074), and of the results of its operations and its cash flows for the year then ended in accordance with GON accounting policies. We also report that funds provided under GRSP2-MDTF IDA Grant No TF018701 have been utilized for intended purposes. In addition, except the matters highlighted in management letter, with respect to SOEs, a) adequate supporting documentation has been maintained to support claims to donors for reimbursement of expenditures incurred; and b) expenditures are e 'gible for financing under the above mentioned Grants. o adatta Timilsina) Deputy Auditor General email: oagnepante.net.np, infoaoag.gor.np Web Page: ww.oagnep.gov.np "*wifere wf r firr r, qwfi f1 r rqtqw fqRizt arer t #rt" GOVERNMENT OF NEPAL MINISTRY OF PHYSICAL INFRASTRUCTURE AND TRANSPORT DEPARTMENT OF ROADS ROAD SAFETY SUPPORT PROJECT (RSSP) GRSP2-MDTF Grant No. TF018701 AUDITED Project Account FY 073-74 (2016/2017) (Period between 16 July 2016 to 15 July 2017) Kathmandu Nepal Ministry of Physical Infrastructure and Transport Department of Roads Road and Traffic Safety Project Under IDA GRSP2-MDTF-G RANT No- TF018701 Sources and Uses of Fund F.Y. 2073/74(2016/2017) Period:16 July 2016 to 15 July 2017 Audited Project Account Amount in NPR Description Notes Cumulative Upto Reporting FY Cumulative to A/c Last Year (2015/16) 2073/2074 (2016/17) to Date Budget Allocation 978,737,000.00 501,300,000.00 1,480,037,000.00 A) Receipt: - GoN Fund 83,373,634.15 97,605,380.94 180,979,015.09 GoN Reimbursable Fund 1 56,107,469.84 138,119,441.38 194,226,911.22 Trust Fund 44,631,871.08 353,299,210,09 397,931,081.17 Designated Account Replenishable a. Ka 7-17 transfer - 92,263,677.00 82,263,677.00 b. Direct Payment 23,052,985.11 60,308.99 23,113,294.10 Total Fund Received 207,165,960.18 671,348,018.40 878,513,978.58 8) Uses of Fund: -- Gds,Wks, NCS,CS, Trg,OC 2.1 123,792,326.03 573,742,637.46 697,534,963.49 b) Project Costs including Operating Costs (Government Source) 2.1 83,373,634.15 97,605,380.94 180,979,015.09 Total Uses of Fund 207,165,960.18 671,348,018.40 878,513,978.58 Designated Account Statement(NRs) - 1) Opening Cash Balance in DA 137,135,841.16 - 2) Fund Received From IDA 161,160,000.00 352,230,214.14 513,390,214.14 3) Total Cash Available(1+2) 161,160,000.00 489,366,055.30 513,390,214.14 4) Less: Transfer to Gov. Treasury Account - 324,067,467.34 324,067,467.34 5) Less: Direct Payment 23,052,985.11 111,555,728.74 134,608,713.85 6) Foreign Exchange Gain/Loss (971,173.73) (4,676,315.61) (5,647,489.34) 7) Closing Designated Account Balance 137,135,841.16 49,066,543.61 49,066,543.61 Bimala Adhikari Sanjaya K. Shrestha Thaneshwor Gautam Gopal Prasad Sigdel n Kumar K.C. Devendra Karki Ram Kumar Acharya Mohadatta Timilsina Accounts Officer Project Coordinator Chief Accounts Controller DG Under Secretary Secretary FCG DAG RSSP RSSP DOR DOR MoPIT MoPIT FCGO OAG Note - 1 Ministry of Physical Infrastructure and Transport Department of Roads Road and Traffic Sefty Project Under IDA GRSP2-MDTF-GRANT No- TF018701 Supplementary Report of Sources and Uses of Fund F.Y. 2073/74 (2016/2017) Period:16 July 2016 to 15 July 2017 Amount in NPR Notes Cumulative Upto Reporting FY Cumulative Description to A/c Last Year (2015/16) 2073/2074 (2016/17) to Date Release: A). GoN Fund 83,373,634.15 97,605,380.94 180,979,015.09 GoN Reimbursable Fund 2.1 100,739,340.92 462,186,908.72 562,926,249.64 Less: Unspent Balance Transfer to Treasury A/C From DA - 324,067,467.34 324,067,467.34 Reimbursement 44,631,871.08 - 44,631,871.08 Refund to the Government Total 44,631,871.08 324,067,467.34 368,699,338.42 Total GoN Fund 2.1 83,373,634.15 97,605,380.94 180,979,015.09 Total Reimbursable Fund 56,107,469.84 138,1J,441.38 194,226,911.22 Bimala Adh,kari Sanjaya Kumar Shrestha Account Officer Project Coordinator RSSP RSSP 2.1 Ministry of Physical Infrastructure and Transport Departmentof Roads Under IDA GRSP2-MDTF-GRANT No- TF018701 Statement of Expenditure byGON Budget Heads Budget Head: (3373303 and 3373304) FY 2071/072 (2014/2015) Period16 July 2016 to 15 July 2017 Cumulative Expenditure upto last FY 2015/16 Expenditure in this year (2016/017) Cumulative Expenditure Up to Date 33 N esript____on GON IDA Total GON IDA Total GON IDA Total Project Costs 29511 Equipment - - - - 29,244,912.00 29,244,912.00 - 29,244,912.00 29,244,912.00 29611 Const- 83.373,634.15 91,509,901.77 174,883,535.92 97,605,380.94 510,017,962.55 607,623,343.49 180,979,015.09 601,527,864.32 782,506,879.41 Consult. - 32,282,424.26 32,282,424.26 - 34,579,762.91 34,579,762.91 - 66,862,187.17 66,862,187.17 Less : Deducted Money - - - - 100,000.00 - - 100,000.00 100,000.00 29711 Net Amount of Consult. - 32,282,424.26 32,282,424.26 - 34,479,762.91 34,579,762,91 - 66,762,187.17 66,762,187.17 Total Project Cost Capital 83,373,634.15 123,792,326.03 207,165,960.18 97,605,380.94 573,742,637.46 671,448,018.40 180,979,015.09 697,534,963.49 878,513,978.58 Total Non Project Cost (B) 49,865,779.98 64,593,789.83 - 64,593,789.83 114,459,569.81 Grand Total (A+B) 133,239,414.13 123,792,326.03 207,165,960.18 162,199,170.77 573,742,637.46 736,041,808.23 295,438,584.90 697,534,963.49 878,513,978.58 1imala Ad ikari Sanjaya Kumar Shrestha Accounts 0 icer Project Coordinator RSSP RSSP Note - 3 Ministry of Physical Infrastructure and Transport Department of Roads Road and Traffic Safty Project Under IDA GRSP2-MDTF-GRANT No- TF018701 Reconciliation of Designated Account By Detail Transaction F.Y. 2073/74 (2016/2017) Period:16 July 2016 to 15 July 2017 S No. Description NPR USD Remarks 1 A). Opening Balances as of Reporting Period 137,135,841.16 1,284,885.61 2 8). Receipt of Fund 352,230,214.14 3,357,942.42 5 C) Total Receipt of Fund 489,366,055.30 4,642,828.03 6 C). Less :Transfer to GoN Treasury 324,067,467.34 3,095,431.84 7 D). Less : Direct Payment 111,555,728.74 1,070,373.60 8 E). Foreign Exchange Gain/Loss by NRB (4,676,315.61) - 9 F). Closing Balance as of Reporting Period 49,066,543.61 477,022.59 Note:- Exchange rate as at 15 July 2017 @ US$ 1=Rs. 102.86 Bimala A likari Sanjaya Kumar Shrestha Account 0 icer Program Coordinator RSSP RSSP |) I IIi i i i I N t- N ote-5 Ministry of Physical infrastructure and Transport Department of Roads Road and Traffic Safty Project Under IDA GRSP2-MDTF-GRANT No- TF018701 Summary of Cash Withdrawal (Disbursement Under 5273-NEP) F.Y. 2073/74 (2016/2017) Period:16 July 2016 to 15 July 2017 Cur. NPR Description WA No Value Date Advance Categøry I Total Cumulatives up to Last Year (2072/73) 161,160,000.00 44,631,871.08 44,631,87.08 Fiseal Year 2073/74 .. First Trimester 3 21-Sep-16 59,270,674.53 59,270,674.53 itat ofFirstTriniester J 9370.674.S3 59_ _6_443 Second Trimester 4 17-Jan-17 62,973,898.20 62,973,898,20 5 7-Feb-17 20,532,504.00 20,532,504.00 Total:of$éoåd imester: .83,506440t20 83,506, 0220 3rd Trimester 6 18-May-1 7 66,598,809.44 66,598,809.44 7 2-Jun-17 132,512,873.92 132,512,873.92 8 30-Jun-17 11,410,450.00 11,410,450.00 Total of Third Trimester •210.522,133.36 21fi,5.22.133.36 Total of Ihis Year (21"3 "4) . - - 353.299,2 10.09 353,29,210.9 Cunilati.ýL upto Repnrtin, Period 161.160.000i0.00 397,931.051.1" 39"'31S1.1 7 Initial Deposite Cur. USS Deseription WA No Value Date Advance Category 1 Total Cumulatives upto Last Year(2072/73) 1,500,000.00 418,685.47 418,685.47 First Trimester (2073/74) 3 21-Sep-16 553,424.34 553,424.34 Total of irst Triniter 553,424.34 553,424,34 Second Trimester 4 17-Jan-17 579,335.34 579,335.34 5 7-Feb-17 188,952.92 188952.92 Totalbf Second Triritesttt :..- __________/_68,288.26 768288:26 3rd Trimester 6 18-May-17 646,412.51 646,412.51 7 2-Jun-17 1,283,118.77 1,283,118.77 8 30-Jun-17 106,698.54 106,698.54 fotal of Third Timester 2.036,29.82 2,036229,82 Total of this Yenr (213'74) - 3.357.942.42 3.357,94Z42 CiimuIatives upiri Repor'ting Period .1.-..00. 3,'6,62 '.50 3.776,627.89 Initial Deposite Bimata A h kari Sanjay, arSliresta Account O ieer Program Coordinator RSSP RSSP Ministry of Physical Infrastructure and Transport Department of Roads Road and Traffic Safty Project Under IDA GRSP2-MDTF-GRANT No- TF018701 Statement of Expenditure (SE) F.Y. 2073/74 (2016/2017) Period:16 July 2016 to 15 July 2017 Category 1 Total Description WA No Value Date NPR USD Cumulatives up to Last Year (2072/73) 16,438.00 154.20 Fiscal Year 2073/74 First Trimester 3 21-Sep-16 32,495,668.26 215,513.84 Total of First Trimester 32,495,668.26 215,513.84 Second Trimester 4 17-Jan-17 3,523,465.00 32,56136 5 7-Feb-17 5,187,085.00 47,732,45 Total of Second Trimester 8,710.550.00 80,293.81 3rd Trimester 6 18-May-17 - 7 2-Jun-17 15,460,000.92 146,572.77 8 30-Jun-17 11,410,450.00 106,69854 Total of Third Trimester 26,870,450.92 253,271.31 Total of this Year (2073174) 68,076,669.18 549,078.96 Cumulatives upto Reporting Period 68,093,107.1S 549233.16 Bim a Adhikari Sanjaya K. Shrestha T6neshwor Gautam Gopal Prasad Sigdel n Kumar K.C. Devendra Karki R rn Kumar Acharya Mohadatta Timilsina Accounts Officer Project Coordinator Chief Accounts Controller DG Under Secretary Secretary FCG DAG RSSP RSSP DOR DOR MoPIT MoPIT FCGO DAG Nepal Rastra Bank Banking Office, Thapathali (Account Statement) Client Code : 1204653 Client Name: ROAD SAFETY SUPPORT PROJECT A/c No: 1204653/001.004.840 A/c Name: 4 KHA 5 SPECIAL CURRENT ACCOUNT Currency: USD Date,.. Vau D@te Ref.-h. Dr' Amount E>ch. 1Date 21 . Value Date Ref./Chq. Description Cr FC NPR Rate Balance 7/15/2016 7/15/2016 BALANCE b/d CR 1,284,885.61 1,284,885.61 8/4/2016 8/4/2016 TRANSFER ACCOUNT TO ACCOUNT CENTRAL DR -4,349.06 -467,741.35 106.82 1,280,536.55 8/24/2016 8/24/2016 ORMT TRANSFER ACCOUNT TO ACCOUNT CENTRAL DR -527,427.38 -56,461,10149 107.05 753,109.17 9/21/2016 9/21/2016 6/20/073 IBRD 6/20/073 IBRD CR 553,424.34 59,183,198.92 106.94 1,306,533.51 11/29/2016 11/29/2016 TRANSFER ACCOUNT TO ACCOUNT NEPAL C DR -195,876.57 -21,479,825.20 109.66 1,110,656.94 12/26/2016 12/26/2016 TRANSFER ACCOUNT TO ACCOUNT CENTRAL DR -383,458.77 -41,494,073.00 108.21 727,198.17 1/17/2017 1/17/2017 61RMT/66/073/TF 187010014 CR 579,335.34 63,002,718.23 108.75 1,306,533.51 1/25/2017 1/25/2017 TRANSFER ACCOUNT TO ACCOUNT CENTRAL DR -185,595.88 -20,168,704.00 108.67 1,120,937.63 1/31/2017 1/31/2017 TRANSFER ACCOUNT TO ACCOUNT STANDAR DR -3,357.04 -363,800.00 108.42 1,117,580.59 2/8/2017 2/8/2017 6[RMT/73/073 IBR 6IRMT/73/073 IBRD TF 18701 CR 188,952.92 20,327,555.13 107.58 1,306,533.51 4/2/2017 4/2/2017 ORMT TRANSFER ACCOUNT TO ACCOUNT NABIL B DR -4,552.71 -471,023.38 103.46 1,301,980.80 4/2/2017 4/2/2017 ORMT TRANSFER ACCOUNT TO ACCOUNT STANDAR DR -9,325.35 -964,800.71 103.46 1,292,655.45 4/11/2017 4/11/2017 TRANSFER ACCOUNT TO ACCOUNTSANIMA DR -198,403.61 -20,421,683.83 102.93 1,094,251.84 4/20/2017 4/20/2017 TRANSFER ACCOUNT TO ACCOUNT NEPAL C DR -293,128.69 -30,203,980.35 103.04 801,123.15 5/11/2017 5/11/2017 TRANSFER ACCOUNT TO ACCOUNT NEPAL C DR -141,002.15 -14,537,321.17 103.1 660,121.00 5/19/2017 5/19/2017 61RMT/111/073/74 TRANSFER ACCOUNT TO ACCOUNT CR 646,412.51 66,729,163.41 103.23 1,306,533.51 5/26/2017 5/26/2017 TRANSFER ACCOUNT TO ACCOUNT CENTRAL DR -1,196,350.82 -123,212,170.50 102.99 110,182.69 6/4/2017 6/2/2017 6IRMT/119/073/74 TRANSFER ACCOUNT TO ACCOUNT CR 1,283,118.77 131,994,427.87 102.87 1,393,301,46 6/19/2017 6/19/2017 TRANSFER ACCOUNT TO ACCOUNT CENTRAL DR -276,238.64 -28,397,332.00 102.8 1,117,062.82 7/2/2017 7/2/2017 TRANSFER ACCOUNT TO ACCOUNT CENTRAL DR -522,011.29 -53,866,345.00 103.19 595,051.53 7/3/2017 7/3/2017 61RMT/140/073/74 From IBRD- Road safety CR 106,698.54 10,993,150.58 103.03 701,750.07 7/16/2017 7/16/2017 TRANSFER ACCOUNT TO ACCOUNT SANIMA DR -200,058.33 -20,578,000.00 102.86 501,691.74 7/17/2017 7/17/2017 TRANSFER ACCOUNT TO ACCOUNT STANDAR DR -24,669.15 -2,535,294.10 102.82 477,022.59