O-tr1 i? I )__c}:; 3 Pf s-~ OC?1 ~ <2 A i . , , .. U .. ·i~ , .::,;l,:: FINANCIAL ATTEST AUDIT REPORT ON THE ACCOUNTS OF PUNJAB TOURISM FOR ECONOMIC GROWTH PROJECT (PTEGP) INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA LOAN NO. 5982-PK) PLANNING & DEVELOPMENT BOARD GOVERNMENT OF THE PUNJAB FOR THE FINANCIAL YEAR 2022-23 AUDITOR-GENERAL OF PAKISTAN TABLE OF CONTENTS Page No. List of Abbreviations I Preface 2 PART-I 3 Project Overview 4 Auditor's Report to the Management (Audit Opinion) 5 Financial Statements 7 PART-II 30 COVERING LETTER TO MANAGEMENT LETTER 31 EXECUTIVE SUMMARY 32 I. Introduction 33 2. Audit Objectives 33 3. Audit Scope and Methodology 34 4. AUDIT FINDINGS AND RECOMMENDATIONS 34 4.1 Organization and Management 34 4.2 Financial Management 34 4.3 Procurement and Contract Management 35 4.4 Construction and Works 35 4.5 Monitoring and Evaluation 36 4.6 Compliance with Grant/Loan covenants 36 4.7 Environment 36 4.8 Sustainability 36 4.9 Overall assessment 36 5. CONCLUSION 37 ACKNOWLEDGEMENT 38 ABBREVIATIONS & ACRONYMS C&W Communication & Works Cr No. Credit Number ECNEC Executive Committee of National Economic Council EIA Environmental Impact Assessment FD Finance Department FY Financial Year GoP Government of Pakistan GoPb Government of the Punjab IBRD International Bank for Reconstruction & Development IDA International Development Association IPSAS International Public Sector Accounting Standards !PC Interim Payment Certificate ISSA!s International Standards of Supreme Audit Institutions PAO Principle Accounting Officer PC-I Planning Commission Proforma - I P&D Planning & Development PD Project Director PKR Pakistani Rupee PMU Project Management Unit PTEGP Punjab Tourism for Economic Growth Project SDAC Special Departmental Accounts Committee TSE Technical Sanctioned Estimate UNESCO United Nations Educational, Scientific and Cultural Organization USO United States Dollar WB World Bank 1 PREFACE The Auditor General of Pakistan conducts audit subject to Articles 169 and 170 of Constitution of the Islamic Republic of Pakistan 1973, read with sections 8 and 12 of the Auditor-General's (Functions, Powers, Terms and Conditions of Service) Ordinance, 2001. The audit of the "Punjab Tourism for Economic Growth Project" (PTEGP), IDA Loan No. 5982-PK, for the financial year 2022-23 was carried out accordingly. The Directorate General of Audit Works (Provincial), Lahore conducted audit of the project for the financial year 2022-23 in August 2023 with a view to reporting significant findings to the management. Audit examined the economy, efficiency, and effectiveness aspects of the project. In addition, Audit also assessed, whether the management complied with applicable laws, rules, and regulations in managing the project. This Audit Report indicates specific actions that, if taken, will help the management realize the objectives of the project A meeting of the Special Departmental Accounts Committee was held on September 15 th , 2023 to discuss findings of the audit. The Report consists of two parts. Part-I contains Project Overview, Auditor's Report (Audit Opinion) and Financial Statements. Part-II contains Executive Summary, Management Letter and Audit Findings. The Report has been prepared for submission to the World Bank in terms of the Financing Agreement. Lahore ~l}v (Muhammad Amir Usman) Dated: 13 •12...2023 Director General Audit Works (Provincial) 2 PART-I 1. PROJECT OVERVIEW 2. AUDITOR'S REPORT TO THE MANAGEMENT 3. FINANCIAL ST ATEMENTS 3 PROJECT OVERVIEW Name of the Project: Punjab Tourism for Economic Growth Project (PTEGP) Sponsoring Authority: • World Bank • Government of the Punjab Executing Authority: • Planning & Development Board (Project Management Unit) • Tourism Department • Communication & Works Department Loan No: IDA No. 5982-PK Loan Amount: WB share PKR 7,750.000 million (USD 50 million) GoPb share PKR 775.000 million (USD 05 million) Total Amount: PKR 8,525.000 million (USD 55 million) PC-I Cost (Original): PKR 5,775.000 million (USD 55 million) PC-I Cost Revised: PKR 8,525.000 million (USD 55 million) Date of Commencement: October 13 th , 2017 Date of Completion (Original): April 301 \ 2023 Date of Completion (Revised): October 3 I'\ 2024 Date of Approval by ECNEC: July 261 \ 20 I 7 Loan Closing Date: February 281 \ 2025 Loan utilization Status in FY 2022-23: WB Share Rs 1,454.660 million GoPb Share Rs I 08.089 million Total Amount for the year Rs 1,562.749 million Progressive expenditure up to June 2023: WB Share Rs 2,995.771 million GoPb Share Rs 252.255 million Total Amount Rs 3,248.026 million 4 AUDITOR'S REPORT TO THE MANAGEMENT (Audit Opinion) Auditor's Report on the PTEGP Financial Statements We have audited the accompanying financial statements of "Punjab Tourism for Economic Growth Project" that comprises of Statement of Receipts and Payments, Statement of Comparison of Budget and Actual together with the notes forming part thereof for the year ended June 30'\ 2023. Management Responsibility It is the responsibility of the project management to establish and maintain a system of internal control, and prepare and present the Statement of Receipts and Payments in conformity with the requirements of Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standard. Auditor's Responsibility The responsibility of the auditor is to express an opinion on the financial statements based on the audit conducted. We conducted our audit in accordance with the International Standards of Supreme Audit Institutions (ISSAis) as adopted by the Auditor General of Pakistan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. The audit process includes examining 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. Opinion In our opinion: a) The financial statements present fairly, in all material respects, the cash receipts and payments by the project for the year ended June 3011\ 2023 in accordance with Cash Basis IPSAS, Financial Reporting under the Cash Basis of Accounting Standard. 5 b) The expenditure has been incurred in accordance with the requirements of legal agreements. Lahore (Muhammad Amir Usman) Dated: 13 /2-.2023 Director General Audit Works (Provincial) 6 FINANCIAL STATEMENTS PUNJAB TOURISM FOR ECONOMIC GROWTH (PTEGP) PROJECT IDA LOAN NO. 5982-PK FOR THE YEAR ENDED ON 30TH JUNE, 2023 Page 1. Statement of Receipts and Payments 08 11. Statement of Comparison of Budget and Actual Amounts 09 m. Notes to the Financial Statements 10 1v. Bank Statement 24 7 WR Loirn 5'>82-PK: Punjab Tourism for l<:conomic Growth Project (PTEGP) l'rojl'cl :\tanagemrnt l'nit: Punjab Tourism for Economic Growth Project (PTEGP) Statement of Cash Receipts and Payments For the )'l'ar l'tull'd 30 ,Jun!' 2023 F\' 2022-23 F\' 21121-22 (PKR in millions) (Pl\'.R in millions) Rl'Cl'ipts/ Rl'cl'ipts/ Payments Payments by Payments Payments by Note Total Total Contrnlll'd by Third Parties Controlled by Third Parties PMli PMl 1 Rect'ipt.~ (Jovcrnnwnt Funds 6 123 618 123.618 50.000 50,000 WB 1:unds 5 1,988.588 118.247 2,106.835 886.411 29.814 916 224 Total Recei1,ts 2,112.206 118.247 2,230.453 936.411 29.814 %6.224 Payments Goods 7 70.585 70.585 78.251 78.251 ( ·1vil Works 8 l ,201.548 1,201.548 397.489 397.489 No11-Co11sult1111•. Services 9 21.666 21.666 ( 'onsultin!' Service~ Ill 8H102 118.247 202.849 150.fMl 29.814 180 655 lncrcmcntal ( lperalrng ( 'ost II ,rn_2,11 ,f0.2,17 32,760 32,760 Tnunings & Workshops 12 25.854 25.854 42,493 .12.,193 Total Paymrnts 1,444.502 118.247 1,562.749 701.835 29.814 731.649 lncrc.-ase/ (llccrcasl') in Cash Cash at bc1'.inning of year 1,765.68(1 1,765.686 1,534.610 1,534.610 Increase' (lkrn::llsc) in Cash 667.704 667.704 234.576 - 234.576 (\1sh at end of year 13 2,433.390 - 2,433.390 1,769.186 - 1,769.186 Q11 Project Director P'unjab Te11rism fer E.cenomic Grewth P'roj.c:t (PTEGP) GoPb, P'&DD Flnanclal Manage ent Specialist Punjab Tourism for Economir Gr·t \Vth Proje~t (PTE(;rJ) 1 GliPb: F&[)[,') WB Loan 5982-PI'-: Punjab Tourism for Economic Growth Project (PTEGP) Project i\lanagement l 'nit : Punjab Tourism for Economic Growth Project (PTEGP) Statement of Comparison of Hudgel and Actual (Classification of Payment by )<'unctions) For the year ended 30 ,June 2023 F\' 2022-23 F\' 2021-22 (PKR in millions) (PKR in millions) Difference of Difference of Nole *Actual Budget Budget and *Actual Budget Budget and Actual Actual Cash lnllo~s (iovcrnment 1:unds 6 123.618 50.000 (73.618) 50.000 50.000 - WB Funds 5 2.106.835 2.790.000 683.165 916.224 2A50.83 1I l.53'1.610 Total Rccci11ts 2,230.453 2,840.000 609.547 966.224 2,500.834 1,534.610 Cash Oulllows Goods 7 70.585 - 78.251 - Civil Works 8 l.20U48 - 397.489 - Non-Consulting Services 9 21.666 - - - Consulting Services 10 202.849 - 180.655 - Incremental ()pcrating ('.ost 11 40.247 - 32.760 - Training-" & Workshops 12 25.854 - 42.493 - Total Payments 1,562.749 2,840.000 1,277.251 731.649 2,500.834 1,769.186 Net Cash Flows 6(17.704 - 667.704 234.576 - 234.576 •Actual amounts encompass both cash and third party settlements .,,, Project Director i1 ,unjab Teurism for Economic Growth Projec;t (PTEGP} GoPb,l"&DD Financial Management Speclallst Punjab Tourism for Economic Growth Project (PTEGP) GoPb, P&DD Punjab Tourism for Economic Growth Project (PTEGP) Notes to the Financial Statements For the Year ended 30 June 2023 1. Reporting Entity The financial statements are for Punjab Tourism for Economic Growth Project (PTEGP) for the year ended 30 June, 2023. The financial statement encompasses the reporting entity as defined in the Financing Agreement between the Islamic Republic of Pakistan and the World Bank. The Financing Agreement was signed on August 2, 2017 for an amount of SOR 36.800 Million, equivalent to US $ 50 Million (Loan 5982-PK) including counterpart financing of US $ 5 Million. The project became effective from October 13, 2017 with the closing date of October 01, 2022 extended upto October 31, 2024. The objective of Punjab Tourism for Economic Growth Project is to strengthen institutional capacity, increase private sector participation and improve infrastructure services for the tourism sector growth in the Punjab province. The project is implemented through Planning & Development Department of the Government of Punjab. Financing Loan 5982-PK: The financing is made in the form of Credit based on World Bank terms, with a loan term of 24 years. The Financing Agreement No is Credit Cr 5982-PK. 2. Certification by Project Management on Application of Funds The Punjab Tourism for Economic Growth Project (PTEGP) management certified that the funds have been applied/ expenditure have been incurred for the purpose intended in the financing agreement. 3. Accounting Convention and Statement of Compliance The financial statements have been prepared in accordance with Cash Basis IPSAS Financing Reporting under the Cash Basis of Accounting. The accounting policies have been applied consistently throughout the period. Page 1 of 13 Projec: irecto, l'unJ;ilt Tourism t.r Ec:onomi~ /0 Growt~!!~i~! r!EGP/ • 4. Significant Accounting Policies 4. 1 Foreign Currency Transaction Cash receipts and payments arising from transactions in foreign currencies are recorded in Pak Rupee by applying to the foreign currency amount. the exchange rate between the Pak Rupee and the Foreign Currency at the date of the receipts. 4.2 Reporting Currency All amounts in the financial statements are in Pak Rupees. 4.3 Revenue Recognition Revenue in recognized on the date of receipt of money by bank or clearance of cheque. Revenue is recognized on gross basis and any related costs are recorded separately. 4.4 Recognition of Expenditure Expenditure is recognized on the date when payment is made or cheque is issued. Financial year to which the payments pertain is determined by the date on which a cheque or payment advice is issued. 4.5 Employee Terminal Benefits Service benefits of government deputations employees are accounted for in their respective departments while no service terminal benefits are paid to the contractual employees. 4.6 Payments by Third Party The payments made by third parties do not constitute cash receipts or payments controlled by the Project but do benefit the Project as the Project does not receive cash (including cash equivalents) directly from, or gain control of the bank accounts or similar facility established for its benefit by, the third parties. Payments by third parties, if any, are disclosed in the Payments by third parties column on the face of Statement of Cash Receipts and Payments and notes to the financial 5. External Assistance External assistance was received in the form of Credit from the World Bank under financing agreement dated August 2, 2017 between the World Bank and Government of Pakistan (GOP) for the purpose of Punjab Tourism for Economic Growth Project (PTEGP). The following amounts were received by the Project during the period. 1 Page 2 of 13 ProJ ct Director Punjall Teurism for Economic Growth Preject (PTEGP) Financial Mana ement Spf!c.t~!ist // GePb,PloDD Punjab Touri m for Ecom11nic 2022-23 2021-22 Loan No. 5982-PK -- ----- ------------ - US$ Pak Rupees US$ Pak Rupees -- - - - - - - - - - ~ · SOE Procedures 5.1 7,000,000.00 1,988,588,400 5,000,000.00 886,410,500 Direct Payment 5.2 425,316.19 118,247,057 156,614.63 29,813,741 Commitment Letter 7,425,316.19 2,106,835,457 5,156,614.63 916,224,241 5.1 This represents funds transferred to the Punjab Tourism for Economic Growth Project (PTEGP)'s Designated Assignment Account by the World Bank on the basis of Withdrawal Applications submitted by the Project. 5.2 Direct payments represent amount paid directly by the World Bank on behalf of the project in respect of goods and services procured/imported by the Project. The payments were made on the basis of Withdrawal Application submitted by the Project. 5.3 There has been no instance of non-compliance with the terms and conditions of the financing agreement between the World Bank and GoP which have resulted in cancellation of Credit. 5.4 Undrawn External Assistance Undrawn Credit at reporting date represent amounts specified in the financing agreement between the World Bank and GOP that the World Bank will disburse for Punjab Tourism for Economic Growth Project (DCRIP) project purposes. 2022-23 2021-22 Loan No. 5982-PK US$ millions US$ millions Closing Balance 21.433 28.859 21.433 28.859 6. Counterpart Funds Loan No. 5982-PK 2022-23 2021-22 Note Amounts in Pak Rupees Counterpart Funds 6.1 123,618,000 46,500,489 123,618,000 46,500,489 7 , Page 3 of 13 Financial Man en! Specialist 1£? 6.1 This represents funding to the Punjab Tourism for Economic Growth Project by the Government of Pakistan as agreed between the World Bank and GOP. 7. Goods Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Component 1 - Tourism Enablement 7.1 4,942,826 Component 2 - Infrastructure and 7.2 45,457,846 Destination Development Component 3 - Project Management and 7.3 20,184,453 Institutional Capacity Building 20,184,453 50,400,672 7.1 Tourism Enablement Amounts in Pak Rupees ~·------ Loan No. 5982-PK Note Local Foreign Equipment for Department of Tourist 4,942,826 Services (DTS) 4,942,826 7.2 Infrastructure Development and Destination Development Amounts in Pak Rupees - ---- ---- -· Loan No. 5982-PK Note Local Foreign Facilities and Amenities Upgradation 7.2.1 20,062,340 Implementation of Lahore Museum 7.2.2 25,395,506 Management Plan 45,457,846 7.2.1 Facilities and Amenities Upgradation Amounts in Pak Rupees ---------- - Loan No. 5982-PK Note Local Foreign Purchase of Uniforms for Department of 3,942,340 Tourist Services (DTS) Purchase of SMD (Surface-Mount Device) 6,558,000 i I Page 4 of 13 Preject Director . ,ncial Management Spec _ }3 ,nlalt Tourism for E~~~?.'."'c Purchase of Lab Equipment 9,562,000 20,062,340 7.2.2 Implementation of Lahore Museum Management Plan Amounts in Pak Rupees ----··---- Loan No. 5982-PK Note Local Foreign Purchase of IT Equipment 13,833,358 Purchase of Furniture & Fixture 11,562,148 25,395,506 7.3 Project Management and Institutional Capacity Building Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Purchase of Vehicles 19,790,900 Purchase of Furniture & Fixture 196,257 Incremental Operating Cost 197,296 20,184,453 8. Civil Works Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Component 1- Tourism Enablement Component 2 - Infrastructure and 8.1 38,646,125 1,162,901,531 Destination Development Component 3 - Project Management and Institutional Capacity Building 38,646,125 1,162,901,531 Page 5 of 13 j ct Directo1 Punjab To ·sm for Economic 8.1 Infrastructure Development and Destination Development Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign --- ------ Land Acquisition 8.1.1 38,646,125 Secondary and Tertiary Road Access 8.1.2 928,574,944 Facilities and Amenities Up Gradation at Sites 8.1.3 195,637,067 Installation of Sign Boards 38,689,520 ----·--·- - 38,646,125 1,162,901,531 8.1.1 Land Acquisition Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Rehabilitation/ Improvement of Road from 30,254,000 Kallar Kahar to Manara, District Chakwal Construction of Rohtas Fort Bypass Road 8,392,125 38,646,125 8.1.2 Secondary and Tertiary Road Access Amounts in Pak Rupees ---·------ Loan No. 5982-PK Local Foreign Rehabilitiation of Sucha Soda to Manawala Road to Gurdawara and 12,740,878 Metalled Road from Lahore - Sheikhupura Road to Mariumabad Rehabilitation of Road from Sucha Soda to Manawa la Road, District 47,193,759 Sheikhupura Rehabilitation of metalled road from Adda Mukdi to Channan Pir, 304,523,647 Tehsil Yazman Widening/ Improvement of main road leading to Uch Sharif, District 239,314,982 Bahawalpur Rehabilitation/ Improvement of Road from Kallar Kahar to Manara, 288,617,251 District Cha kwa I Rehabilitation/ Improvement of Mettaled Road from Lahore 36,454,427 Shcikhupura Sargodha Road to Gurdawara Sucha Soda 928,574,944 Page 6 of 13 Financial Management Specialist • Punjab Tourism for E:conomir 8.1.3 Facilities and Amenities Upgradation at Sites Amounts in Pak Rupees Loan No. 5982-PK Local Foreign Provision of Pre-Fabricated Reversible Washrooms and Tuckshops at different tourist sites 61,284,703 Supply/ Installation of Solar Power System at different tourist sites 62,474,740 Construction of Taxi la Museum Gate 2,506,516 Construction of Toilet Blocks at different heritage sites 69,371,108 195,637,067 9. Non-Consulting Services Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Component 1 - Tourism Enablement 9.1 20,061,012 1,407,674 Component 2 - Infrastructure and Destination Development 9.2 197,000 Component 3 - Project Management and Institutional Capacity Building 20,061,012 1,604,674 9.1 Tourism Enablement Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Stakeholder Engagement & Consensus Building 81,200 Improving Skill Formation & Training 19,979,812 Seminars and Workshops 1,407,674 20,061,012 1,407,674 9.2 Infrastructure Development and Destination Development Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Gt Page 7 of 13 Financial Management Specir1!!d· fl_ Puniab Tourism for t:conr.1-r,,, 4tf___ Facilities and Amenities Up Gradation at Site 197,000 197,000 10. Consulting Services Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Component 1 - Tourism Enablement 10.1 5,559,193 Component 2 - Infrastructure and 10.2 142,020,441 Destination Development Component 3 - Project Management and 10.3 16,232,059 39,037,806 Institutional Capacity Building 16,232,059 186,617,440 10.1 Tourism Enablement Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Survey/ Data Collection (Consultants 5,559,193 Remuneration - Individual) 5,559,193 10.2 Infrastructure Development and Destination Development Amounts - --- - - --- in Pak Rupees Loan No. 5982-PK Note Local Foreign --- Destination Investment and Management 119,990,235 Plans (DIMPs) Solar Power Systems (Supervision Firm) 7,026,492 Engineering Supervision Firm 14,206,892 Environmental Supervision Firm 631,822 Installation of Sign Boards (Individual) 165,000 142,020,441 Page 8 of 13 17 ()1, 10.3 Project Management and Institutional Capacity Building Amounts in Pak Rupees Note Local Foreign Human Resource 11,580,497 30,909,806 Other Demand Driven Consultancies 4,651,562 8,128,000 16,232,059 39,037,806 11. Incremental Operating Cost Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Component 1 - Tourism Enablement 11.1 195,880 2,366,444 Component 2 - Infrastructure and 11.2 1,881,528 Destination Development Component 3 - Project Management and 11.3 12,769,586 23,033,958 Institutional Capacity Building 12,965,466 27,281,930 11.1 Tourism Enablement Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Survey/Data Collection 1,408,303 Seminars and Workshops 195,880 940,141 Stakeholder Engagement & Consensus 18,000 Building 195,880 2,366,444 11.2 Infrastructure Development and Destination Development Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Facilities and Amenities Up Gradation at Site 1,881,528 Page 9 of 13 1,881,528 11.3 Project Management and Institutional Capacity Building Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Human Resource 1,701,028 5,807,230 Occupancy Cost 2,314,125 3,085,500 Registration of Vehicles 629,770 - - - ------- Repair & Maintenance 11.3.1 1,197,080 434,492 Postage, Telegram & Courier Services 11,234 13,094 Utilities 11.3.2 1,160,812 735,846 Petrol, Oil and Lubricants (POL) 11.3.3 1,123,051 3,123,821 ------- Stationery 11.3.4 932,033 624,977 Printing & Publication 580,243 444,867 - ------- -- Newspaper, Periodicals & Books 14,725 9,885 -~- -- --- Advertisement & Publicity 887,548 4,093,138 Travelling Allowance (TA/ DA) 451,700 492,527 Car Rental 394,569 2,927,618 Other Incremental Operating Cost 456,328 892,186 Other Store Items 915,340 244,927 ---· ----- Miscellaneous 103,850 ·--------· 12,769,586 23,033,958 11.3.1 Repair & Maintenance Amounts in Pak Rupees ffi Page 10 of 13 ,q Loan No. 5982-PK Note Local Foreign R & M (Machinery & Equipment) 881,800 354,162 R & M (Furniture & Fixture) 39,280 23,180 R & M (Vehicles) 276,000 57,150 1,197,080 434,492 11.3.2 Utilities ---··----- Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Telephone & Trunk Calls & internet Services 515,484 448,933 Gas Charges 1,860 1,160 .~---- Water Charges 101,120 52,080 Electricity Charges 542,348 233,673 1,160,812 735,846 11.3.3 Petrol, Oil and Lubricants (POL) ----~-·. Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign POL for Vehicles 824,830 2,805,495 POL for Generator 298,221 318,326 1,123,051 3,123,821 11.3.4 Stationery -- Amounts in Pak Rupees -------- Loan No. 5982-PK Note Local Foreign Office Stationery 361,863 295,707 Computer Stationery 570,170 329,270 Page 11 of 13 932,033 624,977 12. Trainings & Workshops Amounts in Pak Rupees -------- Loan No. 5982-PK Note Local Foreign Component 1 - Tourism Enablement 12.1 25,853,637 Component 2 - Infrastructure and Destination Development Component 3 • Project Management and Institutional Capacity Building 25,853,637 12.1 Tourism Enablement Amounts in Pak Rupees Loan No. 5982-PK Note Local Foreign Improving Skill Formation & Training 17,678,338 lnternshi p & Apprenticeship Program 8,175,299 25,853,637 11. Cash and Bank Local Foreign Loan No. 5982-PK Component Component Amounts in Pak Rupees Cash in Hand Cash at Bank 15,528,885 2,417,861,573 15,528,885 2,417,861,573 13. Authorization for Issue These financial statements have been authorized to be issued by the Project Director on 02-08-2023. Page 12 of 13 14. General Figures have been rounded off to the nearest amount. h:.:1t1rh:J t!Lt~r:;:;::.-1j;'.:·: •1 :-:>- 1 i.J Pu,j b"lc-.:i-,,:,iv ..r ,,1, ,,c ~ . Growt!i l'H1J'.::! i• "!.::GP) ct DirectorPr eel I G r,b P& rm . p njab Tourism for Econo1 Or , • Growth Projfft (l'TEGP: Note: The above breakups and disclosures are not exhaustive. Th se are for geneGIIP11, P&DD guidance purposes only. The management may include breakups and disclosures tailored to project's nature of activities. Page 13 of 13 World Hank assisted Punjab Tourism for Economic Growth Project (PTEGP) l,ist of \\-'ithdrawal A1>11lications till 30-06-2023 WA No. Submission Date Value Date Description lJSD Exchange Rate PKR WJ\-1 13-03-2018 14-03-2018 UN Advance 500,000.00 110.5760 55,288,000 WJ\-2 13-08-2018 30-08-2018 Advances 270,000.00 124 1615 33,523,605 W;\-3 03-01-2019 16-01-2019 lJN Advance 435,930.00 138.9084 60,55'1,339 WJ\-·1 I 5-(J.1-2019 23-04-2019 Advances 2,500,000.00 141.1366 352}M 1,500 WJ\-5 23-01-2020 24-01-2020 UN Advance 958,748.011 154.5686 148,192,336 w ;\-(, 03-02-2020 10-02-2020 Advances 4,000,000.00 l5'12981 617,192,lfOO WJ\-7 22-01-2020 24-01-2020 Documcnlution - - WJ\-8 03-02-2020 10-02-2020 Documentation - - WJ\-9 05-(H-2021 06-04-2021 Advances 7,320,000.00 153.4088 L\22.952,1!6 WJ\-10 27-10-2021 01-11-2021 Direct Payment 36,543.41 173.110011 6J22,0IO WJ\-11 21-02-2022 01-03-2022 Direct Payment 26, l02.44 177.4117 ,t,630,878 W;\-12 01-03-2022 02-03-2022 Advances 5,000,000.00 177.2821 886,4111,500 WJ\-13 I 8-0•l-2022 20-04-2022 Direct Payment 15,661.46 185,8691 2,910,981 WJ\-1•1 18-05-2022 19-05-2022 Direct Payment 26,102.44 198.3917 5,178,507 WJ\-15 27-06-2022 29-06-2022 Direct Payment 52,204.88 206 8747 10,799,869 W;\-16 22-08-2022 24-08-2022 Direct Payment 26,102.44 216.6594 5,655,339 W;\-17 08-02-2023 08-02-2023 Direct Payment 122,835.011 275 2971 33,816,119 W;\-18 20-03-2023 24-03-2023 Advances 4,400,000.00 283.1059 1,2115,665,960 WJ\-19 02-05-2023 04-05-2023 Direct Payment 122,835.00 283.8242 34,863,546 WJ\-20 25-05-2023 26-05-2023 Advances 2,6110,000.011 285.7394 7'12,922,440 WJ\-21 26-06-2023 27-06-2023 Direct Payment 153,543.75 285.9905 113,912,054 'l'otal 28,566,608.82 5,413,632,799 Financial Managem nt Speciall st Punjab Tourism for Economic Growth Project (PTEGP) GoPb, P&DD 23 .. ,~· ...... "".'''".' " ',, ..:. ... \ '",' ,,., . ➔ ,_.:; I ""'"' _:., •➔ i '·' •• f;R .J.G~019 09/0G/2n2~ DH .!(; :~ 1 4;:-.;,0:,2 14/06/202.> DR .J.r;::; l 463030 14/0f./202.l DR l77llSSi2,00 4690~6 14/06/2023 DR J118S512,00 ~};[ r~?tP 4601 468047 22/06/2023 DR 55,...9G,OG l 7132"71(,,00 );,,rn;._.r2:,23 4GSOS3 22/0G/2023 DR 1s:;;:;;o,on 161 -97384G,00 :,'.(, / ,·,t:,; ':! r, 2J 463j ..J.6f.048 22/06/2023 DR G'i':Jrn, no i6!.i06 7 .',:',00 2\~/0(,;;:r.-:3 4(iSl 468049 22/06/2023 DR 216300.0'J l GG90-LS5, on .J.G.31 460001 23/06/2023 DR 3;;9_:,'-i,OO l t~J l J.J.%, GO 460054 23/06/202] DR 1G i J14c11.;, on 46S053 23/06/2023 [IR J:,-.hf.--.-;;~9,GU HR 'l.· ..;,;,_,,. .. '.'"".' :., ..:.,:.; ,.,.,J "l' ;;1; .,,,,, : .,.,_. . ;, • l•R '-+•'" :, ..... ;;, f1R I ... I '4'-1':.;. .J.t,f>01.:;o 2J/OG/202J l.JJ..: l t,J-t\l . OO_; .1600(,4 2-3/G(,/'.!02.3 JiR 1 fl(.¢-1). 0,) .J.f,Sl .J.68059 2)/06/2023 DR 45:!00,0C -!.(,~ 1 460070 24.jOli/202:; DR 71925,0il IOSOS9115,00~ II dalist financial Ma . GM1II Pnlject Project Officer (A&A) Punj1btaurilffllo ltOIIOffl' Getl. Pll laaNI Punjab Tourism For Economic Gron th Project P&O Board GoPB FAX N0.92-42- 99204194 9933200• NATIONAL BANK OF PAKISTAN PH NO: 042- 99200508 TF-911409198 MAIN BRANCH LAHORE.0300 credit ru;i.5982.pk 0335/1866§26 SPECIAL STATEMENT -_____ffiQM__ 01.06.2022 30.06.2023 ZACCOUNT NO:22,221104-8 AJC NO.4148320409 CHEQUE CH BOOK.2193-219201- Cost Canter LZ-4542 Project Cod8 OFACIAL OTHER US$ DOLLARS BALANCE POSTING DATE 300 L017900064 BUYING 26.06.2023 488423 2,426,824,774.00 662,477.00 177.2821 3,736.85 9,471,971.94 26.06.2023 488411 2,426,784,774.00 40,000.00 177.2821 225.63 9,471,746.32 27.06.2023 488416 2,426,744,774.00 40,000.00 177.2821 225.63 9,471,520.69 27.06.2023 488422 2,422,836,542.00 3,908,232.00 177.2821 22,o,t5_27 9,449,475.42 27.06.2023 488429 2,420,906,525.00 1,930,017.00 177.2821 10,886.70 9,438,588.72 27.06.2023 488418 2,420,866,525.00 40,000.00 177.2821 225.63 9,438,363.09 27.06.2023 488419 2,420,847,525.00 19,000.00 177.2821 107.17 9,438,255.91 27.06.2023 488412 2,420,807,525.00 40,000.00 177.2821 225.63 9,438,030.28 27.06.2023 488415 2,420,767,525.00 40,000.00 177.2821 225.63 9,437,804.65 27.06.2023 488413 2,420,727,525.00 40,000.00 177.2821 225.63 9,437,579.03 27.06.2023 488410 2,420,687,525.00 40,000.00 177.2821 225.63 9,437,353.40 27.06.2023 488421 2,420,647,525.00 40,000.00 177.2821 225.63 9,437,127.77 27.06.2023 488408 2,420,607,525.00 40,000.00 177.2821 225.63 9,436,902.14 27.06.2023 488438 2,419,354,291.00 1,253,234.00 177.2821 7,069.15 9,429,832.99 27.06.2023 488439 2,419,237,624.00 116,667.00 177.2821 658.09 9,429,174.90 27.06.2023 488437 2,418,955,053.00 282,571.00 177.2821 1,593.91 9,427,580.99 28.06.2023 488417 2,418,915,053.00 40,000.00 177.2821 225.63 9,427,355.36 28.06.2023 488428 2,417,861,573.00 1,053,480.00 177.2821 5,942.39 9,421,412.97 ,v I ' ())~? ! Projt'cl Officer (A&:A) Punjab Tuuri1m for Eronumir Gro111h Projrrl Financial M.nhemelll Spedalist Jllnj~b TOllfflffl hirfc,nlfflic GIIWIII P,ljtcl P&D Board GoPB GIN, Pill •~••O REPin:s~:NTATION LETTER To The Director General, Audit (Works) Provincial, l,ahore. Dear Sir, This representation letter is provided in connection with your audit of the financial statements of Punjab Tourism for Economic Growth Project (PTEGP) IDA-5982-PK for the year ended 30 June 2023, for the purpose of expressing an opinion as to whether these financial statements give a true and fair view of the state of project's affairs as at 30 June 2023 and of its loss and cash flows for the year then ended in accordance with Approved Accounting Standards as applicable in Pakistan. We confirm that the representations we make in this letter arc in accordance with the definitions set out in the Appendix to this letter. We confirm that to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves: Financial Statements I. We have lulfillcd our responsibilities, as sci out in the terms of the audit engagement referenced No. DGA WPL/TP(Phasc-I)/FAT-08/2023-24/0 I dated 18-07-2023, for the preparation and fair presentation of the financial statements (or preparation of financial statements that give a true and fair view) in accordance with Approved Accounting Standards as applicable in Pakistan. 2. We confirm that proper books of account have been kept by the project as required by applicable laws and regulations. 3. We confirm that the balance sheet, receipts and expenditure account together with the notes thereon have been drawn up in conformity with the applicable laws and regulations and arc agreement with the books of account. 4. We. confirm that the expenditure incurred during the year 2022-23 was for the purpose of the projects business. 5. We confirm that the activities conducted and the expenditure incurred during the year 2022-23 was in accordance with the objects of the project. All the transactions entered during the period have been approved at appropriate levels according to materiality levels approved by the EA/ IA. 6. All events subsequent to the date of the financial statements and for which approved Accounting Standards as applicable in Pakistan require adjustment or disclosure have been adjusted or disclosed, wherever applicable. 2..6 7. We believe there arc no uncorrected misstatements. Information Provided 8. We have provided you with: • Access to all information of which we arc aware that is relevant to the preparation of the financial statements, such as records, documentation and other matters; • Additional information that you have requested from us for the purpose of the audit; and Unrestricted access to persons within the project from whom you determined it necessary to obtain audit evidence. All transactions have been recorded in the accounting records and arc reflected in the financial statements. We acknowledge our responsibility for such internal control as we determine necessary for the preparation of financial statements that arc free from material misstatement, whether due to fraud or error. In particular, we acknowledge our responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error. 9. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. Included in the Appendix to this letter arc the definitions of fraud, including misstatements arising from fraudulent financial reporting and from misappropriation of assets. I 0. We have disclosed to you all information in relation to: a. There have been no instances of fraud or suspected fraud that we arc aware of and that affect the project and involve: • Management; • Employees who have significant roles in internal control; or • Others where the fraud could have a material effect on the financial statements. b. There have been no allegations of fraud, or suspected fraud, affecting the Company's financial statements communicated by employees, former employees, analysts, regulators or others. 11. There have been no instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. Further we have disclosed to you and have appropriately accounted for and/or disclosed in the financial statements in accordance with Approved Accounting Standards as applicable in Pakistan all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. 21- 12. We have disclosed to you the identity of the project's related parties and all the related party relationships and transactions of which we arc aware and all related party relationships and transactions have been appropriately accounted for and disclosed in accordanccwith applicable laws and regulations. Included in the Appendix to this letter arc the definitions of both a related party and a related party transaction. 13. The project has complied with all aspects of contractual agreements that could have a material effect on the financial stalcmcnls in the event of non-compliance, for example debt covenants. 14. There arc no formal or informal compensating balance arrangements with any of our cash and investment accounts. We have no line of credit arrangements. 15. We have no plans or intentions that may affect the carrying value or classification of assets and liabilities. 16. We have no plans lo abandon lines of product or other plans or intentions on behalf of the project. 17. The project has satisfactory title lo all assets. We confirm that we have completely and accurately recognized all transactions involving expenditure incurred during the year. I 8. We confirm that there arc no unrecorded liabilities and all liabilities have been properly recorded / accrued at the balance sheet date. 19. We confirm that during the period there have not been any externally imposed capital requirements. We further confirm that to the best of our information and estimate and cash flow projections the project is expected to remain as a going concern in the foreseeable future. 20. Deferred tax is measured al the tax rates enacted or substantively enacted al the period end and represent those amounts that arc probable of realization taking into account management's estimates of future taxable profit. In determining estimates of future taxable profit against which the deductible amounts can be utilized, management has considered the existence of taxable temporary differences that will reverse in the same period that deductible amounts will reverse and also has considered appropriate tax planning opportunities that the project is more likely than not to take advantage of in order to generate future taxable profit. The project is able to control the timing of reversal of all temporary differences in relation to investments in subsidiaries, branches and associates and investments in joint ventures for which deferred laxes have not been recognized, and it is probable 'J.8 that those temporary differences will not reverse in the foreseeable future, We have not received any advice or opinion that contradicts the project's support for accounting for income taxes, that contradicts the financial statement amounts and presentations in respect of tax, or that is necessary to understand the project's tax accrual and related matters and has not been disclosed to you. We confirm that impact of recognition of deferred tax relating to income under normal tax regime would be immaterial in context of overall financial statements. 21. We confirm that income tax and all other duties, taxes and government levies have been recorded completely and accurately, taking into account all the information available at the balance sheet date and no additional significant liabilities arc expected to arise in respect of current or prior year with relation to the above- mentioned items 22. We confirm that accounting policies have been consistently applied. 23. We have considered which currency is the currency of the primary economic environment in which the project operates (the "functional currency"). In making this assessment, we have used our judgment to determine the functional currency that most faithfully represents the underlying transactions, events and conditions of the project. We confirm that Pak Rupee is the functional currency of the project as substantial expenses arc incurred in Rupees. Project Director froasir~I M~ ment Sp~dalist Punjab Tourism for Economic Punjab Toorilm fo £conomicGrowfl P"fid Growth Project (PTEGPj lloPb,P&DO GIPI, PlD Boiri