AUDITOR'S REPORT The Senior Secretary Health Services Division Ministry of Health and Family Welfare Bangladesh Secretariat, Dhaka. I. We have audited the accompanying Financial Statement of the "4" Health, Population and Nutrition Sector Program (4U" HPNSP)" financed by GOB Development fund and IDA Credit as at 30ti June, 2022 and for the year then ended. Preparation of Financial Statement and IUFRs (see annexure-A) is the responsibility of management. Our responsibility is to express an opinion on the Financial Statement and IUFRs based on our audit. I. We have conducted our audit in accordance with Government Auditing Standards of Bangladesh which are based on the principles of International Standards of Supreme Audit Institutions (ISSAI) and Compliance Audit Guidelines. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statement and IUFRs are free from 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. III. a) We have collected Data and Financial Statements of Twenty One Line Directorates of this program before execution of field audit. We selected the auditable unit/LDs/Cost Centers by following a sampling technique. We have analyzed the risk of expenditures of all Line Directorates. Based on this risk analysis, we fixed-up a materiality level as well as materiality threshold in our audit planning before commencement of field audit. b) The result of our audit disclosed the following material misstatement which affect the Financial Statement: 1. Huge discrepancy was found between the expenditure shown in individual Financial Statement prepared by the office of Twenty One Line Directors and iBAS++ report. [see annexure-B & C (for iBAS++ report)]. 2. The actual expenditure of Seven Line Directors was Tk. 14174.91 lac as per iBAS++ report in the FY 2021-2022. But the Line Director offices had shown in their individual Financial Statement total Tk. 86448.36 lac. So, the Financial Statement for the year 2021-2022 was overstated by an amount of Tk. 72273,44 lac (14174.91- 86448.36) in this regard (see annexure-B). 8 The actual expenditure of four Line Directors was Tk. 375220.68 lac as per iBAS++ report in the FY 2020-2021, But the Line Director offices had shown in their individual Financial Statement Tk. 261053.63 lac. So, the Financial Statement for the year 2021-2022 was understated by an amount of Tk. 114167.05 lac (375220.68-261053.63) in this regard (see annexure-B). 3. So, the Combined Financial Statement prepared by the Health Services Division of MoHFW was understated by an amount of Tk. 41893.61 (72273.44-114167.05) lac resulting from the iBAS++ statement and CFS. IV. It is very difficult for the Auditor to give any comments on program activities regarding DLI/DLR, Because, the responsible authority has not provided any document/report about DLI/DLR. Monitoring, supervision and evaluation should be strengthened for achieving the allocated DLRs by the respective authorities. V. In our opinion, except as stated in a Financial Statement, the preceding paragraph and non-compliance of financial rules and regulations in subsequent observations along with the management letter following the Financial Statement gives a true and fair view in all material aspects of the fmancial position of "40' Health, Population and Nutrition Sector Program (HPNSP)" as on 30 June, 2022 and the results of its operations and cash flows for the year then ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. Opinion Status: Qualified. (M .Alt Deputy Director for Director General Health Audit Directorate Tel: 8392516 9 1 � FINANCIAL ST.�TEM[�I�T . ►11эЕ(а4гу af #1sв1е� 4рд Fит{1}r'�1'etfurc 1ietlEh Sеп•ftrs piц��ion PrдfcCt 1пlрfйагtптNрп Птапгh 41h iitallh, Рлриlаtlди хпд NutnlNoп 5rctoC Progt�mnle (•i!h liYNSP) Project lЭrгanciai 5lиlемсn! � д J4th Juna, 3©г2 ' i•i tпс эп I.ai:Er �'nkп . 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Гt)1'Y.1iV�4F:tii' ()Р ®,\1'CI..►!YF �ь11 г f`tirг+)з р!С vHuc�ied [,> Ttx l'Мчеrопкяl а(1��пnlaSciEэ °а� tпrст G(1l4'ь aharc cstell�kЬr �[[s,�c{ sь�r{гд)3иУ, е.4 �,�пviПrd �го Qг� lгояг4а�, {'ги)гчг ' 1ho•Г�Чгnл r�ьi га 1l�е АцаыА1 lkr+ekгikriern PЧ��issc !ыг с,ц1s оС t!•.г lпnjcrL Лпу �)]4kdltd lлпдs ihs! И,к+с тг1 bcY� s�pC:rxiчŭ hy S7�я e,rr�1 Р! � k1к,� yrar ц�яс апi ггиыl4д� кtипг� га (iUt► (.ipEl сrпlпFшliм;v 1о L"гс �avjc(i>й,�и iч1��Sit�r п9с пi fk�llрЧ'г (iп.1 яС'И i'еkд} . IПfc�лtlM1 t4 No( i}�� )саг I,'1:�'рilиг, fег }и"lч�пе,1J?► zoz!•гаz2 iiI'tcnc.2Uг.. !)"s+Ьигчт<м . (r(JR 14191I7i}.с?1 ЗfП1Е6.9К ЕЭ272,tii�G1 1п.ч4.1lиlurx1b5c3{)1! lцЧ:l.3А 75275,'!К 20l196,7b i�uti! l2939�15. ;32�si,49 гS бl�р.2с 2. E.UлN lRO�I [1t 1'��.�rмr:хт rл�rиr:� '1�tc (папк c�rlhC �сч'сSо�РпСпl lчапесгj h=T.i �'пп�iдс,# Cvfds 1р lhc p:tystt (n uwts i('s �hдп: р1`cli�iЫr р:п,irгд Ск[>vr�liluп�s. 'llscw fцnd�, �rhieh mus4 i+e rc�.�id ba (nтгпа lеыг!�гl11,1n�,t� аtlп !ha c�t�elaыiae. ut� tiha rr�jctt, h:►а tкtn �гдаr. by ihe }�Uj+x-t En цc�crAssnaи Чti1ii 11п !'о?11хч1пс �vi{h�r�xrul рпwсдсгс {iп L,�1:h'Геkа), , 1mt,tk�пtn ("мгkг}гt"г lгiсерtЧпlо лG'ьlипе,3г't31 ?fi21•1S�i7 3(1�'!ur<,303: G:itin! !): ,Rit (Ад:��умсi UРл (1п.с{ Рд тмz{) :�2iЧ':.b4 7lб:s,2] Э£�l5lд.чг RPA й(7�s 3Ut;afAn 1361�з.�э 7l�7?�.1С 1 гьв� RP�i (G�!!1 I13US..5S jySS}.Яlг '&}gY`.i�; Z`a;e1RF'AEGt}fl .�b3')11.а1 l2Gvцr7.S1 G9Сйг2.9'3 (К)ку tS92S,74 1�f9dj,TG Тац1 811:'�Е.147 Е«�С�51�7.5} b4178�&2,f5 ,►, гУТlrt�к )t►:SвинС►:� С?tЬег пьnипе► rnr i1UR1 U. tn7д-i Асич',tt�: RPA) lhcntinд Aeiд�unt [!)РА1 �,11.71 ;i]� �7! }Y1;6ri Тиt�! 3J1,71 3J1.7! 1J1,Г�) Е (у �-V-r�г ',Э . , �,!(�'�„ ��WSTIS✓`� �i7YS ��� 1Т��� _f'�s�г с.+,и,й�гJ жд +5�� м- �i`Лi : 11 Ni Itkillry of Utåhl and pomily NVCIFOrc Eleallh stniccs Olviljon Project lnipittiirntatfon Bråinch 4th WAlfb, Poptiljtlati and Nutrition Sector Progromme (4th fUNSP) Project FinRncitt Sinfement 30(h Juno, 2022 1)lzorr 111 1.1411 Taka Re%iiurcc% Nötm eumulbilvePolor CutqcliiPeriod Curnul;ttiveCurrent Period 2021-2022 Poliod 00VI, KIC)lgllll(lcsll (6011) 1 1293948.16 52~ 76 Lönn from Developnýent Punncr (RPA,000 5 % <63913.42 1269-1933 690862.95 Olbol Rcsouwcs (DPA) 3 132892.64 71624.23 304516,87 cz,2h 0 xni!j halanm (MNC&AH DP) 4 14925.721 331,711 331,69 läpentliturv mind Cuslj 1, llay K- Allwanccs 130995,50 553,0 3 15-19,3 8 2, Supglý and ScivICC 88861.1.10 ZWSV1.56 1119390.26 1 kopic äod kljiýnion-nco 2112M2 150719, 22633,79 4. Ofallls irl AW 2226,43 l 112Ö 2237,71 5. Acquission OlM-VIS 25731,9.90 32x93.06 290212.94 fl, OV;l Work% 610393,19 9157k40 7039M ..58 7, CU1VAI 2454933 0,00 24548,33 i8. DPA t49105,99 71624.2) 2207.30.22 jTot31 Expcoditure JOB4338,3s1 430725,38, 2913064,231 cpi5h clusing 1341a1100 l lflpýC>l Account Opelmillig ACCOLJOIA (MIK) ;Opcraling Accoums (RPA) OperýlitýE.Accaunt.ý([)IIA)(,\INC4AII-op) 331.7) 331,49 33 11,610) caih l 33 2,7 11 331,691 331.691 ro ond cysh 431 GSU M5395.921 nf -7 18 MiiMrry 1 flofilth Rnd Fsmkly Welfare ltiait Sevnitet Diion P'rnject Impkemeation BraNL'h 4th Iealith, Population avd Nutriti Stdor Prograrmne (4 IPNSP) Stes to Projeci Vlasnelal Siatcemnt * 30t June, 2022 1. GO>VERtNMENT k prVtc itNr4 a tlfledi Pi'« t. N}cI * Pofonnna hn ini the AItt 13ci Dupnit Pwogramr fo kac of tc projcc. Any AUbtced Punds ibd bikg Tmt bhxc cNpcnid by tjiw tnd oft Ilhal-o I au mn be rrd t0 01 alriv lo the tgjui. &bn lbpMine arm r e iN 0 M0wM I ak1h T!kA) JIcpe5rln tn Vor Ihc 3c4r I plicw 40 Jurf n ird2 2021-20Z2 W/ ýgina Oburse-rctQOnI t119x70.04 307426.98 172729 2 L lfund t 0011 D392319 75275,35 20116,16 vena. 12939-6 32151.60 1526126M . LOAN FROM DEVELOMENT PARTNER Tht (namI of thc DOvCQmeent P1Onncr) hs pxvided furds to th ",cft to covr Wsritm of cligible proiecc cxpcodhurN. 'htx, Incnvkn to x13 jun O 21bo2 14rc,]22 tjA (DirSt CU) mt1 2192 69 71624.23 31632 RPA (GOti 39951897 15630143 754722.0 1,w RPA (GOD) 53430 29»>. 90., T1 RPA 1011) 39»wi 64953 9le Total d 173i 2169>49.3 69*62.95 3, OTIIEI RESOL RCES Otkcr rckurvar Inxcgpt,cvn 1o F P Mdmåmmoman JMNO m.2 1 702Å x0o 3M e o i 2022 1 hM rsject itoli kw krk aceturt. sr dmpre a onk a:cnnt, ur rnv,ng f(;rd, w1tch I kept at 1ihntIderhil Or Mid hink W ued by AlM M ar ym b mOming ich t k4pp i am äsA bunk to h4u 4ns rizvd by GOJ as nIl uM aurd% :rnnrferd (wf te ulte bek occCoat vei a ob isl eost f ls (in Lwcch TakO I trar lo po 0 t ir Tneq0 to 31?1212C1 ,2022 30" Imn2(2 Opsjtinag A ewüi-n* (RPA) f);ralit4 Ackoant (DPA)31)39 19 AUDITOR'S REPORT The Secretary Medical Education & Family Welfare Division Ministry of Health and Family Welfare Bangladesh Secretariat, Dhaka. I. We have audited the accompanying Financial Statement of the "4t' Health, Population and Nutrition Sector Program (4th HPNSP)" financed by GOB Development fund and IDA Credit as at 30h June, 2022 and for the year then ended. Preparation of Financial Statement and Interim Unaudited Financial Statements (IUFRs) is the responsibility of management. Our responsibility is to express an opinion on the Financial Statement and Interim Unaudited Financial Statements (IUFRs) based on our audit. II. We have conducted our audit in accordance with Government Auditing Standards of Bangladesh which are based on the principles of International Standards of Supreme Audit Institutions (ISSAI). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statement and IUFRs are free from 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. III. a) We have collected Data and Financial Statements of ten Line Directors of this Program before execution of field audit. We selected the auditable unit/LDs/Cost Centers by following a sampling technique. We have analyzed the risk of expenditures of all Line Directors. Based on this risk analysis, we fixed-up a materiality level as well as materiality threshold in our audit planning before commencement of field audit. b) The result of our audit disclosed the following material misstatement which affect the Financial Statement: 1. Huge discrepancy was found between the expenditure shown in individual Financial Statement prepared by the office of ten Line Directors and iBAS++ report [see annexure-A (All FS), B (Summary) & C (for iBAS++ report)]. 2. The actual expenditure of five Line Directorates was Tk. 51030.80 lac as per iBAS++ report in the FY 2021-2022. But the Line Director offices had shown in their individual Financial Statement total Tk. 52302.81 (Without DPA) lac. So, the Financial Statement 7 for the year 2021-2022 was overstated by an amount of Tk. 1272.01 lac (52302.81- 51030.80) in this regard (see annexure-B3). 3. The actual expenditure of 4 (four) Line Directors was Tk. 56501.68 lac as per iBAS++ report in the FY 2021-2022.- But the Line Director offices had shown in their individual Financial Statement Tk. 56036.40 lac (Without DPA). So, the Financial Statement for the year 2021-2022 was understated by an amount of Tk. 465.28 lac (56501.68 - 56036.40) in this regard (see annexure-B). 4. So, Combined Financial Statement prepared by the Medical Education & Family Welfare Division of MoHFW was overstated by an amount of Tk. 806.73 (1272.01 - 465.28) Jac resulting from the iBAS++ statement and CFS (see annexure-B). IV. On the other hand, the responsible authority has not provided any Interim Unaudited Financial Statements (IUFRs) and the Statement of the Disbursement Linked Results (DLRs) achieved during FY 2021-2022. Therefore, It is very difficult for the Auditor to give any comments on program activities with the provided document. Rather Auditor is expressing concern about the difference between Financial Statement (FS) and Statement of iBas++. Monitoring, supervision and evaluation should be strengthened for achieving the allocated DLRs by the respective authorities. V. In our opinion, except as stated in a Financial Statement, the preceding paragraph and non-compliance of financial rules and regulations in subsequent observations along with the management letter following the Financial Statement gives a fair view in all material aspects of the financial position of "4' Health, Population and Nutrition Sector Program (HPNSP)" as on 30 June 2022, and the results of its operations and cash flows for the year then ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. VI. Opinion Status: Qualified. (Farhana Binte Mosharrof) Deputy Director for Director General Health Audit Directorate Tel: 8392512 8 Ministry of Healch and Family Welfare Medical Education & Family Welfare Division Project Implementallon Branch 4th Healfh Population and Nutrition Sector Prögramme (4th HNPSP) Project FinancIal Statement 3Oth Jupe2 02 Figure IWLa Taka Resources NOtes Cumulative eurrent Period öumiative i Prior Peod 2021-2022 Ourrelit Period Governmen1 of Bangladesh 1 87491.62 71481,23 158972.85 RPA (GOB) . 2 107637,26 353C2.76 142900.02 Other resources/DPA 3 2862.98 1656,30 44192B Grant from Development Partner 4 0,00 Cash opening bälance 5 676,89 307.92 11 Total Resources - -. 5BTI 1Ebft70 i åMI å- Expenditure and Cash (Accordlng to PI) 1Py & Allowances 196 43 495,17 2451.0 2, Supply and Services 163719.97 67606.84 231326.81 3. Répair and Maintenance 1371 .14 14688.45 16059.59 4, Grants in Ald 2672,66 1571.37 4244.03 5. Acquison of Assets 26328,25 22413.18 4774143 6. GMI Works . 0 00 0.00 7. ODNAT .0.0 0,0 8, DPA 2862,9 1556.30 4419.29 Total Expenditure (NsN 1O 'f [ash Cidsing Balance lmprest Account. Opeatling AccOunt (RPA) 657.31 376 90 1034.21 jperåtlig AccoUht (GOB) Total Expenditure and Cash k_i5 8 t08708;2 o7i "DT~ Yq ,_Tw~I7V Ministry of Health and Family Welfare Medical Education and Family Welfare Division Project Implementation 13ranoh 41h Helth, Population and NUtrition Sector Progrannie (4th HNPSP) ProjectPloancia i Statempnt 30th June, 2022 1, Government of Bangladesh Funds are ailocated by the Government of Bangladesh to cover GOB's share of eligible expenditure, as specified in the project and and in the Project Proforma and in the Annual Development Program for each of the project Any allocated funds that have not been expended by the fnd of a flical gear lapse and must be returned to GOB, GOO contributions to the project since Inceptioh are as follows (in Lad Take) Inception.to 30th For the:yer Jneptionto 30th Jun, 2021 2021-2022 Jun 2022 Disbursement by GOB 110786;64 8241086 193209,50 Less: Refund to GOB 23297.02 10939. 3 '34236,65 Totajl 2172 148 723 ~ 158972,86 2. Loan from Development Partner The (name of the Development Partner) has provided funds to the project to cover its share of elIgible proiect expenditures. These funds, which must be repaid to (name lender/Donor)'after the conclusion of the project, have been drawn by the project in accor0ance with tihe following withdrawal procedure (iI Lac Take).. Inception to 39th For the year Inceptiono t30th -Jun, 2021 2021 -?022 June, 202 Iniial Deposit (Advance) .. DPA (Direct Payment) 2862,98 155630 A419,28 RPA (GOB) 129380.86 4052996 169910.82 Less RPA (GOB) refund 21843,61 5167.20 27010.81 Net RPA(GOB) 107537,25 35362.76 142900,01 RPA (Non SOE Procedure) . . 0.0 otherC 0,00 Total .51.40.2 s P426739140 3. Other Resources Other ?esources consist of the following: Inception to 30th For the-yeei Idcept16i to 30th June, 2021 2021-202 J ne, 2022 Proiect Revenues ExchanRe gains/Loses 'Tota 4. Qush Inception to 30th Forthe year Inception to 30th .June, 2021 2021-2022 JUne, 2022 Imprest Account Operating Accounts (RPA) 349.41 307.92 657.33 Operating Accounts (GOB) Total 349.41 30792 .7133 _1U