H.P. Forest Department INTEGRATED DEVELOPMENT PROJECT (IDP) For Source Sustainability And Climate Resilient Rain-fed Agriculture Forest Road, Solan-173212 PH : 01792-223043 (0), 01792-220064 (FAX) email- idpsolan@gmail.com Dated \I I From: Pr. CCF-cum-Chief Project Director, Integrated Development Proj ect, Solan. H.P. To: Ms. Saumya Srivastava, Senior Agriculture Specialist, Team Task Leader, World Bank, 70, Lodhi Estate, New Delhi, 110003, India. Sub: Integrated Development Project For Source Sustainability and Climate Resilient Rainfed Agriculture in Himachal Pradesh, Solan (Credit No. 9041-IN) for the year 2022-23- Audit Certificate thereof. Madam, This is reference to the above subject matter and to apprise your good self that Senior Deputy Accountant General (AMG-II) office of Principal Accountant General H.P. Shimla has submitted Audit Certificate dated 06.11.2023for the Financial Year 2022-23 for Credit No. (IDP-9041-IN) to this office. Kindly find enclosed copy of the same alongwoth component wise details of expenditure incurred for the year 2022-23. Regarding two observations from the Audit party of A. G. Office, these are minor observations and will be replied/settled during next round of audit, please. Encls: As above. Pr. CC -cum-CPD IDP, (Project)- Solan Endst. No. dated Copy Ms. Neha forwarded to Gupta, Financial Management Specialist, Goverence Global Practice, South Asia Region, 70, Lodhi Estate, New Delhi, India for information please. Pr. CCF-cum-CPD [DP, (Project)- Solan PRINCIPAL ACCOUNTANT GENERAL (AUDIT), HIMACHAL PRADESH Office of the Pr. AG (Audit), Himachal Pradesh agauhimachalpradesh@cag.gov.in b in i5teresl Ltr No: Economic Sector/2023-2024/DIS-1259780 Date: 08 Nov 2023 To, Chief Project Director IDP-9041 solan, HP Subject: Issue of Inspection Report : PR-78584 Sir/Madam, I am to forward herewith the Audit & Inspection Report on accounts of the office of the Chief Project Director, Integrated Development Project for Source Sustainability and Climate Resilient Rain-fed Agriculture in Solan Himachal Pradesh (Credit no. IDP-9041 -IN) for the year 2022-23. and to request that your replies may be arranged to be furnished to this office along with your specific remarks within four weeks from the date of receipt of this report. The receipt of the Inspection Report may kindly be acknowledged. Yours faithfully, Encls: As above 09 Promila Sharma Sr. AO (Economic HQ 11) Diary No 26 IO Copy to:- Ltr No : Economic Sector/2023-2024/DIS-1259780/C1 I Principal Secretary (Forest), GoHP Shimla Ltr No : Economic Sector/2023-2024/DIS-1259780/C2 2 Principal Chief Conservator of Forest, HP Shimla No : Economic Sector/2023-2024/DIS-1259780/C3 3 Sr. Audit Officer (PPG) 0/0 CAG, Delhi Certificate Dated: 06.11 Report of Comptroller & Auditor general of India on the Financial Statements of International Bank of reconstruction and Development (IBRD) for implementation of Integrated Development Project for Source Sustainability and Climate Resilient Rain Fed Agriculture in Himachal Pradesh, Solan (Credit No. IDP-9041-IN) for the year 2022-23. Principal Secretary (Forest) to the Government of Himachal Pradesh, Shimla Report on Project Financial Statements We have audited the accompanying expenditure statement of International Bank for Reconstruction and Development (IBRD) for implementation of Integrated Development Project for Source Sustainability and Climate Resilient Rain Fed Agriculture in Himachal Pradesh, solan (Credit No. IDP- 9041-1N) for the year 2022-23 which comprises of the statement of Source and Application of Funds and the Reconciliation of claims of total application of funds for the period 2022-23.. These statements are the responsibility of the project 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 audited standards promulgated by the Comptroller & 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 test basis, evidence supporting the a amount 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 source and application of funds of International Bank for Reconstruction and Development (IBRD) for implementation of Integrated Development Project for Source Sustainability and Climate Resilient Rain Fed Agriculture in Himachal Pradesh, Solan (Credit No. IDP- 9041-IN) Project for the period 2022-23., in accordance with Government of India accounting standards. In addition, in our opinion, (a) with respect to statements of expenditure, adequate supporting documentation has been maintained to support claims of the International Bank for Reconstruction and Development (IBRD) for reimbursements of expenditure incurred; and (b) except for ineligible expenditure to this as detailed in the audit observations appended audit report, expenditure No. IDP- are eligible for financing under the Loan Agreement 9041-IN. During the course of audit, statements of expenditure (Annexure-A)/ Financial Management Report (Annexure-II) and the eonnected documents examined and these were can be relied upon to support reimbursement under the Loan Agreement• This certificate is issued without prejudice to CACs right to incorporate the audit observations in the Report of CAG of India for being laid before State Legislature. Audit Observations Sr. Para Subject Amount (in lakh) 1 OBS- Avoidable expenditure on account of the 16.42 977254 commitment char es 2 OBS- Ineligible reimbursement of claims of 635 977259 expenditure incurred on payment of salary of Rs. civil servant and arrear of revision of pay 6.36 lakh 22.77 Total Deputy t General (AMG-II) Annexure-A Dated: • Detail of Expenditure incurred by the office during the year 2022-23. The year wise position of the filnds received during the financial year 2022-23 along with the details ofexpenditure incurred by the office during the period covered under audit as per the details is given in the following table: Rs. in lakh Year Budget Expenditure (during the year) 2022-23 9507.06 9415.59 An expenditure of Rs. 9415.59 was incurred for the year 2022-23 and after deducting the salary of IFS officers of Rs. 60.92 lakh the reimbursable amount was Rs. 9354.67 lakh. Out of the reimbursable amount, an amount of Rs. 7502.86 lakh (80.2 per cent) was claimed for reimbursement from World Bank and an amount of Rs. 7517.55 lakh was accepted and reimbursed to the State Govt. The variation in amount accepted claim of Rs. 14.69 lakh (Rs. 7517.55 lakh — lakh) was due to Govt. foreign transaction advice from the RBI Rs. 7502.86 (Rupee equivalent of the foreign currency received on account of external aid). The component wise details of expenditure incurred upto the year 2022-23. is given as under:- (Rs. In lakh) CUMULATIVE EXPENDITURE STATEMENT TILL DATE 31-03-2023 Up to 31st March Cumulative For Cumulative Project Sub- 2022 the period (1st till date Components Components April, 2022 to 31-03-2023 31st March, 2023 Sustainable IA- Improve land and water Planning for Participatory resource and Sustainable Land Water Mana ement 16286.71 11164.26 5122.45 Implementation and Participatory and SLWM Investment 5916.11 19354.52 13438.41 Total Com onent-l 2A- Improved 198.07 1588,09 1786J6 mproved agricultural Water productivity Productivity and value 2B- Adoption 192.68 64008 83216 addition of Climate, smart into High Value Cro 390.75 2228.11 261832 Total Com nent•2 Institutional 3A-improving 22.07 154,92 11699 capacity the Governance building for Structure for integrated Institutional watershed capacity management building for Integrated Water Shed Mana ement 3B -Institutional 24.72 10.06 34.78 Reform and Strengthening of the Himachal Pradesh Forest artment Total 46.79 164.98 211.77 Com onent-3 Project Other Salaries 898.00 591.06 1489.06 management and Wages Work for 286.03 118.45 404.48 Project Mana ement Other goods for 83.41 41.01 124.42 Project M ement Other 68.82 34.94 103.76 Consulting Services for Project Mana ement Implementation 884.23 259.95 of Environment and Social Framework and Other Operational Ex nces Total 2,220.49 1,045.41 3,265.90 Com onent-4 Total Use of 16,096.44 9,354.61 25,451.11 Funds Less amt. of 10.60 0.00 audit paras in Audit Certificates 2020-21 G.Total 16,085.84 9,354.67 25,440.51 Add Salary of - 60.92 IFS Officers for the year 2022-23 Total 9415.59 Ex enditure Out of the total amount of Rs. 25440.51 lakh incurred during the year 2018-19 to 2022-23 on the project, an amount of Rs. 9454.67 lakh (excluding salaries of IFS Officers — Rs. 60.92 lakh) was allotted and utilized during the financial year 2022-23. ccountant General (AMG-II)