Auditor's Report Audit Completion Date: 06/09/2022 Secretary Power Division, Ministry of Power, Energy and Mineral Resources, Bangladesh Secretariat, Dhaka, We have audited the accompanying Financial Statements of "TA for Strengthening and Development of Sustainable Power Sector in Bangladesh" Under Rural Electrification Renewable Energy Development-Il (RERED-il" which comprise of the statement of cash receipts and expenditure, statement of comparison of budget and actual expenditure as at and for the year ended of 30 th June 2022 and a summary of significant accounting policies and other explanatory notes. Opinion: Unqualified. In our opinion, the project Financial Statements present fairly, in all material respects the cash and cash equivalents of the project as at of 30 June 2022 and the funds received and expenses incurred for the year then ended in accordance with the IPSAS financial reporting under the cash basis of accounting and the requirements of project accounting manual issued by the Finance Division, Ministry of Finance, Government of Bangladesh as well as those of IDA guidelines and agreement. Basis for opinion We conducted our audit in accordance with the 'Government Auditing Standards of Bangladesh' (GASB) issued by the Office of the Comptroller and Auditors General (OCAG) of Bangladesh which are based on the International Standards of Supreme Audit Institutions (ISSAls) issued by International Organization of Supreme Audit Institutions (INTOSAI). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the Financial Statements section of our report. We are independent of the project in accordance with the 'Code of Ethics' issued by the OCAG Bangladesh which is based on ISSAI 130- Code of Ethics (INTOSAI Code), and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Matter This audit of the project financial statements has been conducted to comply with the specific requirements of the development partner as specified in the related Loan/ Grant agreement. OCAG reserves all the rights to incorporate any audit observation from this report in the CAG's audit report for being laid before parliament to fulfill the constitutional responsibilities. Responsibilities of Management for the Financial Statements and internal Controls; Management of the project is responsible for the preparation and fair presentation of this special purpose financial statements in accordance with the International Public Sector Accounting Standard (IPSAS) financial reporting under the cash basis of accounting issued by the International Public Sector Accounting Standards board (the IPSASB) of the International Federation of Accountants (IFAC), the requirements of project accounting manual issued by the finance division MOF, GOB as well as those of the JICA guideline and agreement and for such internal control as management determines is necessary to enable the preparation of special purpose financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibilities for the Audit of the Special Purpose Financial Statements: Our objectives are to obtain reasonable assurance about whether the financial statement is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with GASB which are based on ISSAI will always detect a material -6- misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or. in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these special purpose financial statements, As part of an audit in accordance with the Government Auditing Standards of Bangladesh which are based on ISSAls, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: # Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the over-ride of internal control, # Obtain an understanding of internal control relevant to the audit 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 entities internal control. # Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. # Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Report on Requirements of the Development Partner In accordance with the Project Agreement signed between IDA and Economic Relation Division (ERD) on behalf of Govt. of Bangladesh on 30 June 2014, we also report that: (a) In our opinion the funds were utilized for the purposes described in the Financing Agreements and agreed Project's Annual Work Plans; (b) In our opinion projects expenditures disbursed and expenses claimed are following established proper procedures and according to the provisions of the financing agreements/Grant Disbursement handbook, and guidelines on financial management and analysis of projects issued by the SDC. (c) The procurement of goods, services and civil works have been made in accordance with the financing agreements and SDC procurement regulations; (d) The PMU has complied with covenants specified in the Grant agreement except disclosure Notes to Financial Statement of the Project. (Md. Anwar Hossain) Deputy Director For Director General Tel: 02-226663603 -7- Financial Statement -8g Project: TA for Strengthening and Development of Sustainable Power Sector in Bangladesh Project financial statements (GOB Approved Model) As of and for the years ended 30 June 2021 (Development partner's) Grant/Loan Opening balance as at 1st For the year ended 30 June Closing balance as at 30 June 2021 Resources January 2021 2021 (Cumulative current period) (current period) GOB RPA Total GOB RPA Total GOB RPA Total Governent of Bangladesh 6 1 - - 120.08 0 120.08 120.08 0.00 120.08 Loan from lenderldonor (RPA Cr.-5158- BD 7 - 500.00 500.00 - 50.84 50.84 - 550.84 550,84 Other resources 8 - - - - 0.00 - Cash opening balance .5 - - - 000 - Total resources - 500.00 500.00 120.08 50.84 170.92 120,08 550.84 670,92 Expenditure and %Cash 1.Others Allowance - 72A0 72.40 - 72.40 72.40 2. Entertainment 0.49 2.97 3.46 0.49 2.97 3.46 3.H1iring Charges - 14.30 14.30 - 14.30 14.30 4, Labour wages tonon-employess 63.22 - 63.22 6322 - 63.22 5._ 0.10 - 0.10 0.10 - 0.10 6..InternetiFax/Talex . . 7, Tele_p_on_e - 4.91 4.91 - 4.91 4.91 8.Advertise 2,70 - 2.70 2.70 - 2.70 9.Travel Expenses 0.05 - 0.05 0.05 - 0.05 10, Boks & Periodicals 0.19 - 0,19 0.19 - 0.19 11. Oit Soursmn 26.23 - 26.23 26.23 - 26.23 12.Training - 9.98 9.98 - 9.98 9.98 13.Petrol & Lubricant 3.16 - 3.16 3,16 - 3.16 14.Gas 6.84 - 684 6.84 - 6.84 ,Travels Transport - 12.87 12.87 - 12.87 12,87 16.Computer Instrments 2.00 - 2.00 2.00 - 2.00 17.Printing & Buinding . 0.50 - 0.50 0.50, 0.50, 18. Stamps & SEel 0.10 - 0.10 0.10 0.10 1 9.Others Stationery 2.25 - 2.25 2.25 - 2.25 20.General Store (Others) 2.00 - 2.00 2.00 .. 2.00 21.Consultancy - 4.47 4.47 - 4.47 4.47 22.Honarariums _ 0.78 2.97 3.75 0.78 2.97 375 23. Repa. & Maint. Of Vehicles 3.98 6.00 9.98 3.98 6.00 9.98 24.Repa. & Maint.Computer 1.00 1.00 1.00 - 1.00 25.Repa. & Maint Office Saranjam 1.00 1.00 1.00 - 1,00 26.Coputer & Instruments - 1.98 1.98 - 1.98 1.98 27.Electic Saranjam .00 1.00 1.00 - 1.00 28. Office Saranjam 1.49 1,49 1.49 - 1.49 29,.Furniture.- - - 1.00 1.00 1.00 - 1.00 Total Expenditure 120.08 132.85 252.93 120.08 132.851 252.93 Opeatin Account (RPA) - 417.99 417.99 - 417 9 47_9 Account (GOB) - K Totl Epeditre ndCas - 550.84 670.92 1.20.08-- 550.84 609 The annexed notesltol2 for maninte gralpart of these special pipose financial statements, Deputy Diector (Admin & Finance) Director General v,ci. Ivionjrul Alam Power Celli Leputy Director (Admin & Finanel 1 Mohammad Hossain power Cell, Power Division J Dlreolor Gonorat Ministry of Power M C r S7nergy and Mineral Resources Mineral Resourcos Government of Banglades, 5. Cash and bank balances/Cash and cash equivalents The Project maintains 02 number of bank accounts, an imprest bank account or revolving fund, which is kept at -Special Account No. 0200001943598 (RPA) Bank to hold funds advancedireceived from Donor and an operating account at GOB Accounts no.4426302003596 Bank to hold funds advancedireceived from GOB as well as funds transferred from the imprest bank account. Year-end cash balances were as follows: (in lakch taka) Opening balance.as at 1st .3 Closingfbalance asiat 30 harirF201 Poi the'year ended, Jue 202' indeptionth janary, Jun 2021 (inception to 30 June : '2021y . 201 Imprest account. Operatinqg RAccour.fSRPA 5pp 0 50 84'' 417.99 Operating account (GOB) 0.00 0 .0 0 0 00 JTotal .50.00: 50.84 417.99 6. Funding received from Government of Bangladesh Funds are allocated by the Government of Bangladesh to cover GOB's share of eligible project expenditures, as - specified in the project manual and in 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 and for the year are as follows: (in lakh taka) Opening baidme as at Ist . ClosLng balance as at 30 January, 2021 For the year ended 30 June 2021 (iception to lstJanuary, June 2021 (mcephon to 30 June , 2021) . 2021) I Disburseinenty GOB .000 1 ¶20.08 12008 Less:"Refund to GOB , O00 17:92 ..17.92 Less; Re)l !92~.4 ; .*..T 7. Funding received from Development Partners (loans from lenderidonor) The (name of the lenderidonor) has provided funds to the Project to cover its share of eligible projectexpenditure. These funds, which must be repaid to the (name of the lenderidonor) after the conclusion of the Project, have been drawn by the Project in accordance with the following withdrawal procedures: ___________________________________(in Jakh/ taka) SOE Procedures 50'0 r00____ S' 34 -11 / O Dirctpaymgents VI 0I on o.oo lImprest accouint '1th eis000 '. 1,0 0.00 otal . m500.00 50:84 41199 Others 0.00.00.00 0.00' 8. Funding from other resources Other resources consist of the following: ain lakch taka) Ekel nli"nInd1 Less: TaDSbondinaes'"ft osmgj- etd <~ ~ ~~~~~. -0, V.- 'o4teeIIldd30 fees....... 'Project revenues._______ Less,'TDS on intel e-st and Wihe~r fees-_____________ Total Deputy Diector(AdmnI6& ancAMSl 60- MLd. MWainT &'Finyancr) kPo ISV r Resources AnergV an G гд i �� Ор о �г4 � - °с�йg$['°�д �$б'т л� •Ф � �ц�Оир�°'С3 _� Ч� « � п л н aG.'�ит '° N � _ "� Г _ � Fë4sSo � � � б . � ы� • - ' � • • д • т$й • слgi�i�i,i•di • с $ � �й�о�� �� � - т � GG��-C Р �-^� .9 р oSe� ~ и Ри Е `t� а� а 5у c4°' � т ' ëi • -йчqiр т •.�О `"• wSo с� S'~ й й� • Sv cq=� • т � � . д �`�' �й с oN о т гг�о тпt йад � й � � � (7 т го � й °и,� �°°8• °B�Rr$��Аай'°о °oS°SooSBo= - �, � м е - йбл от У р � а ti и с_ t. м м й � °� 3��н ��г FJ •�� „�,��я•-жн• •� •в•жов�'��gm$в - а W� а`€ � - � о � ;,"" �_ . - • �а_ • �я • �аю� � ���вsз�н • � вк�о • • sos= �ар �ц �'� � < ' т'" �� ° 5.�� т�$т°°°��„Së т о �S<8а . и09 п� т - - -гбнйоогiн.т - а V � _� _ __ ' _у и Р' Н �� и � ю � Ф � т р � � �,г� а� л �R ¢. � �� a:NV • Ф Ф с1 � о Nй - ц4 D С ё� д igi ц$ � � - � _ О ш ��� g� �о о 'д'й т�•8йопQа dr.oгPi� о�оо �� з� � о� � � с •^ а ° г�7 R- � � ,°и °' � т � о и й ° т °' д`. ` � . т ° т � д в,+ iп°л - „у°•, ° О �т = r v д w.� � � � � и � � � а�= � � т Р ° Ч w г. о с й о гта " т �� > Ё � Е t � 's� yL Е 3"' ` . 'и' `и с.ё с т у ё т � ° ��ю т0 CUO..'у' rs 2 бсi н �_� .�"д�г = р н� п т р� С`s и а. �° т Р �° =с,. '��+ о� ° С mo�w 4(�, о q W т �:Е � 1 и ai 0 Р il �� � 4К V х $ ."- G.- � �'ату д и 93то°[7 с° 7'F°д���°U�+�ЮФа� г° и т° о�n,�,�� ' ° т � оЕ т R,a FL°'� .� �ь.ц йй°����. °й��� �_ а 'о -if�; Тю ы� � r ° ё� "�ыL34� ёо`й.Иьс'3 �а ��ёiS т'�?'��°ыу-С -'•;' и���ro � � 5� _ � о� i °i а е"л s. А G т G.С ь". .Х т Vi � у � Р•" п т у� k т р Ф С] '. W� � д 6 т � `б w � � V у о ы у т с О у т° у° Р'� и � F_ С р G 6 о0. Ч ГЯ у у о _ i� . _ ��L � " cg ё �. а т 7�^•а'�°�аь=д��г°�аwдг�с.°i��а��г°�т�?�:`� ��?� � � . � ог, ° р °г7wу.г[7 V° Ё¢о.. � йгд�т н ri ts�гсгмя�йб м- ^ Е - i` .а� О r г`ы�гiг�г т гл n "' й, нпип ci-. � ` __. _ . - � . � • - • � - � , � � ' _ _ � � � _. _. _ .' 5. caib and hank and cash ectulvmierds le Proýeet tnaintakis G2 nuinber ol banliaccount5, an Imprest hank fund. whlc'n ýs kept at Sperini /Gco"t No,.. 0200001943598 (RPM Øllok 4Q hnld fuxuls odvancedxceelved from Donor and an operatlng account at GOD Accounts no 4426302003596 Bank to hold funds advanc~colved from COB as well as funds trnnsfo"gd firg. t hhe, Imprest hank acæunt,YeDr-and vash balances were asfo2ows: i ! - . " - - . L.-Cl » Juna'M21 (mb 6. Fullding recelved from Omremment øf Bangladesh Funds øre eflowled by tho Govemmen1 Qf B2ngladssh la coVCf GOErS Shaf8 01 eligide preject exKridllums, as spedfled ýn ffle prýøet manual and in afinVak dØV6klilnflæt prograrnfille foreach of the Iýrejvet. ARy alicealed funds lhal have not been expanded by ýhe; end of El liseal yeaf lapse and mu5t bo rolurned ID GOB, GOEI cordfibullop tu the Projecl sInce Inceplion and fordie ynar are as fallom: (in Mkh InkfiJ IAR 7. runding r«elved frøm 13hvelaprnent Partnere (loafiý from lenftridonor) Tho (namo ol the lender~ has provided lunds. lo Iheproýed lo uovar Ils sflare ol øU9lNa piojMæjne6dkure. These fuAds, whiefi must bo mpAd to Uie (narne ol Ihe lenderlduner) after the coftcýuslon of te Pivlud, hava boen dram by ýbe Pmjecý in amerdance W1b rhe JolloWnij W[Wrawal procedufes: On akh tý,ka) tu 36, ýj L & Fuc--I Olher ýesmj(ws cen51s1. o[ the lollowing: nk "-.FEJ Tofill Depuly M*r (Mmhi ýkrnnæ) a xy Auditor's Report on Special Account 1 We have audited the accompanying Special Account statements of the "TA for Strengthening and Development of Sustainable Power Sector project" Financed by IDA Loan No.5158 for the year 2020- 2021 & 2021 -2022. 2. Our audit was carried out in accordance with the Government Auditing Standards of Bangladesh and International Standards of Supreme Audit Institutions (ISSAI). Our audit included such review of systems of internal controls, tests of the accounting records and supporting documentation, verification of account balances and other auditing procedures that were considered necessary under the circumstances. 3, The accompanying Special Account Statements were prepared based on cash deposits and withdrawals for the purpose of complying of the above grant procedures. 4. In our opinion, the Special Account Statements gives a fair view of the account for the year ended 301 June, 2022 based on cash deposit and withdrawals. Opinion status: Unqualified. (Md. Anwar Hossain) Deputy Director For Director General Tel. No. 02-226663603 - 13 - AUDIT OPINION ON SOE We have audited the Statement of Expenditure (SOE) on the accounts of "TA for Strengthening and Development of Sustainable Power Sector in Bangladesh Project Financed by IDA Credit No.5158- BD and GOB for the year 2020-2022. The Audit was conducted following the Government Auditing Standards of Bangladesh and International Standards of Supreme Audit Institutions (ISSAI). Accordingly, it included such tests of the accounting records and supporting documentation, review of existing systems of internal controls, so far exists and adopting necessary auditing procedures that we considered essential under the circumstances. In our opinion, the Statement of Expenditure (SOE) can be relied upon to support the applications for grant disbursements by the IDA for expenditure incurred for the purposes of the project as specified in the particulars of Withdrawal Applications. Opinion status: Unqualified. (Md. Anwar Hossain) Deputy Director For Director General Tel: 02-226663603 -14 -