AUDITOR'S REPORT Audit Completion Date: 05-12-2021 Secretary Financial Institutions Division Ministry of Finance Bangladesh Secretariat, Dhaka. 1. We have audited the accompanying financial statement of the "Nuton Jibon Livelihood Improvement Project (NJLIP)" for the fiscal year 2020-2021financed under IDA Credit No -5594-BD as of 30t June 2021 and for the years then ended. The preparation of financial statement is the responsibility of management. Our responsibility is to express an opinion on the financial statement based on our audit. II. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Ill, The Financial Statement gives a fair view in all material aspects of the financial position of "Nuton Jibon Livelihood Improvement Project (NJLIP)" financed by IDA Credit No -5594-BDas of 30"' June 2021 and the result of its operation and cash flows for the year ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. IV. Opinion Status:Unqualified. (Md. Abdul Quddus Prodhan) Deputy Director For Director General Foreign Aided Projects Audit Directorate Tel: 02-48318478. 7 Nuton Jibon Livelihood Improvement Project Credit number 5594-BD, Implemented by SDF Project Financial Statement 30th June, 2021 (Figures in Lakh Taka) Cumulative Current Cumulative Prior Period Period Current Period Cash Opening Balance 12,544.17 Fund received from GOB 15,600.00 - 15,600.00 Loan from Development Partner 154,730.71 3,145.60 157,876.31 Other Resources 680.70 91.28 771.98 Total Resources 171,011.41 15,781.05 174,248.29 Expenditure and Cash 1 Component Al: Development and Strengthening Community Institutions 19,407.82 2,521.49 21,929.31 2 Component A2: Financing of Community Plans 110,852.82 4,009.71 114,862.53 3 Component A3: Nutrition Awareness and Support 1,869.85 334.40 2,204.25 4 Component Bl: Business Partnerships Development and Market Linkages 7,718.75 2,436.20 10,154.95 5 Component B2: Second-tier Institutional Development Support 3,970.70 2,511.93 6,482.63 6 Component B3: Employment Generation Support 457.69 135.75 593.44 7 Component Cl: Project Management(IDA) 122.95 5.72 128.67 8 Component C2: Monitoring and Learning 1,136.41 326.80 1,463.21 Total IDA 145,536.99 12,282.00 157,818.99 9 Component Cl: Project Management(GOB) 12,930.25 2,669.75 15,600,00 Total Expenditure 158,467.24 14,951.75 173,418.99 Cash Closing Balance 12,544.17 829.30 829.30 IDA Advance 0.06 0.11 0.11 Operating Account (RPA) 7,635.75 11.04 11.04 Operating Account(3 Region Office) 1,557.90 46.16 46.16 GOB Advance 34.32 0.65 0.65 Operating Account 3,221.75 756.57 756.57 Operating Account(3 Region Office) 94.39 14.77 14.77 Total Expenditure and Cash 171,011.41 15,781.05 174,248.29 ~AAAAA~ Q" 2 ,,iF . - - Nuton Jibon Livelihood Improvement Project Notes to the Financial Statement 30th June, 2021 1. GOVERNMENT OF BANGLADESH Fund are allocated by the Government ol Bangladesh to Bangladesh to cover GOB's share of eligible project expenditures , as specified in the Project Pro forma and in the Annual Development Program 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 are as follows: (in Lakh Taka) Inceptlon to 30th For the year Inception to 3Ot June, 2020 2020-2021 June, 2021 Disbursement by GOB 156,00.00 00 156,00.00 Less: Refund to GOB 0 0 0 Total 156,00.00 00 156,00.00 2. LOAN FROM DEVELOPMENT PARTNER The (name of the Development Partner- International Development Association (IDA)) has provided funds to the project to cover it's share of eligible project expenditures. These funds, which must be repaid to (name lender/donor) after the conclusion of the project have been drawn by the project in accordance with the following withdrawal procedures. (In Lakh Taka) ceptionto 3For the year Inception to June, 2020 2020-2021 June, 2021 Initial Deposit (Advance) 120,00.00 00 120,00.00 DPA (Direct Payment) 0 0 0 RPA (SOE Procedure) 142,730.71 31,45.60 145,876.31 RPA (Non SOE Procedure) 0 0 0 Total 1547,30.71 31,45.60 157,876.31 3. OTHER RESOURCES Other resources consist of the following: Inception to 30t For the year Inception to 30 June, 2020 2020-2021 June, 2021 Project Revenues 680.70 91.25' 771.93 Exchange gains/losses 0 0 0 Total 680.70 91.2s 771.9% 4. CASH The project maintains two bank account, an imprest bank account, or revolving fund, which is kept at Sonali Bank to hold funds advanced by IDA and an operating accounting, which is kept at a Janata bank to hold funds advanced by GOB as well as funds transferred from the imprest bank account. Year end cash balances were as follows (In Lakh Taka) Inception to 3 For the year Inception to 30th June, 2020 2020-2021 June, 2021 Imprest Account 16,86.66 61.69 61.69 Oneratinp Account (RPA) 76,35.75 11.04 11.04 756.57 756.57 I Total I1Z.5,44.16 1 8; . 3U 8 ~ 293 0 -,A A Direc5l!! 4f FI"' AUDIT OPINION ON SPECIAL ACCOUNT 1) We have audited Special Account Statement otNuton Jibon Livelihood Improvement Project.(NJLIP), Dhaka for the year 2020-2021 financed by IDA under Financing Agreement No-5594 BD. 2) Our audit was carried out accordance with International Auditing Guidelines. Accordingly, our audit included such review of systems of internal control,tests of the accounting records and supporting documentation,verification of account balances and other auditing procedures that we considered necessary under the circumstance. 3) The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above credit covenant through Sonali Bank Ltd. Lalmatia Branch, Dhaka operating Account No. STD-4416403000119 4) In our opinion the special account statement gives a fair view of the accounting activities for the year ended 30 June 2021 on the basis of cash deposit and withdrawals. Opinion Status: Unqualified. (Md. Abdul Quddusrod an) Deputy Director For Director General Foreign Aided Projects Audit Directorate Tel: 02-48318478. 52 Audit Opinion on SOE 1) We have audited Statement of Expenditure (SoE) of"Nuton Jibon Livelihood Improvement Project (NJLIP)", Dhaka for the year 2020-2021 submitted to the World Bank for the reimbursement of expenditure in accordance with the IDA Financing Agreement financed by IDA under financing Agreement No-5594 BD, 2) Our audit was concluded following International Standard of Auditing. Accordingly, our audit included such review of systems of internal control, tests of the accounting records and supporting documentation. So far exists and adopting necessary auditing procedures that we considered essential under the circumstances. Withdrawals /SOE Particulars: Summary of withdrawal Applications/SOE particulars are shown in the enclosed Statement. In our opinion the Statement of Expenditure (SOE) to support the applications for credit disbursement for expenditure incurred for the purpose of the project specified in the particulars of the withdrawal applications. Opinion Status: Unqualified. (Md. Abdul Quddus Prodhan) Deputy Director For Director General Foreign Aided Projects Audit Directorate Tel: 02-48318478. 53