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Audit Report/Opinion in respect of World Bank assisted Project-Skill
Strengthening for Industrial Valne Enhanlcelclent (STRIVE) Grant Assistance for
integrating and enhancing delivery quality of ITIs (Credit No. 5965-IN) for the Year
2021-22.
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)   Audit Report
Management letter


Office of the Director General of Audit,
(Central Expentditure),
IndraprastiI Estate,
New Delhi-110002
AMG-1/EAP/2-96/EAP/STRIVE(WB)/2022-23/                       dated:-20.3.2023
To,
The Secretary,
STRIVE,
Ministry of Skill Development and Entrepreneurship,
Shram Shakti Bhawan, Rafi Marg,
New Delhi-110001.
Subject:-Audit report/Opinion in respect of World Bank assisted Project-Skill Strengthening
for Industrial Value Enhancement (STRIVE) Grant Assistance for integrating and enhancing
delivery quality of ITIs (Credit No. 5965-IN) for the year 2021-22.
We have audited the accompanying financial statements of the Skill Strengthening for
Industrial Value Enhancement (STRIVE) Project financed under World Bank credit No.5965
IN, which comprise the Statement of Sources and Application of Funds and the Reconciliation of
Claims to Total Appropriation of funds for the year ended March 2022. These statements are the
responsibility of the Project's 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 Auditing Standards promulgated by the
Comptroller and 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 a test basis, evidence supporting the amounts 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 out audit provides a reasonable basis for our opinion.


n our opinion, the financial statements present fairly, in all material respect, the sources
ppeatiols of funds of Skill Strengthening for Industrial Value Enhancement (STRIVE)
Pt for the year ended March 2022 in accordance with Government of India accounting
oaards.
In addition, in our opinion (a) with respect to SOEs, amounting to
R J0886.77 lakh adequate supporting documentation has been maintained to support claims to
the world Bank for reimbursement of expenditure incurred and (b) except for ineligible
expenditure of Rs7819.77 lakh as detailed in Annexure-A to the report, all expenditure are
eligible for financing under the Loan/Credit Agreement.
During the course of audit, SOEs/FMRs and the connected documents were examined,
and these can be relied upon to support reimbursement under Loan/Credit Agreement.
This report is issued without prejudice to CAG's right to incorporate audit observations in
the Report of CAG of India for being laid before Parliament.
Director (AM


Annexurie-Atk
awin amount of incligible expenditure of STRIVE
(Amount in Lakh)
otalaim                                 108867
,disallowed)171.77
mwi    t7818.00
~li1~~Cs )
T 1 neligible amount            7819.77           7819.77
Net alance 03067.00
3


e nmber OIIS-501725
Li.Cnlis of Rs. 1.77 lakli disallowed
Scrutily of vouchers revealed that an amount of Rs.479.44 lakh has been released to
\   Project management consultant fees during the period of audit which includes
,sent on account of "Out of pocket expenses incurred while travelling" amounting to
77akh.
(Amount in Rs)
o                    Amount                     OPE Expenses
5                12565978                   32869
CPOO01296               13713666                   143761
Total                    26279644                   176630
Supporting documents i.e. Copy of tour program, Name of Official, Air ticket, Food
Bill, Hotel Accommodation were not found enclosed with the voucher. In absence of which,
the expenditure of Rs. 1.77 lakh could not be verified in audit.
In this regard Half Margin no. 1 dated 23.11.2022 and draft Inspection Report dated
14.12.2022 was issued, but reply is still awaited.
Reference Number OBS-501734
Para 2: Claims without obtaining UCs
Scrutiny of records revealed that an amount of Z 90.40 crore was disbursed as Grant-in-aid
under MH 2230, 3601 and 3602 during the year 2021-22, against which UCs amounting to
Rs. 12.22 crore have been received by MSDE. Audit observed that out of total expenditure of
Rs.90.40 crore only 12.22 crore is admissible for reimbursement and the remaining amount
cannot be treated as expenditure on scheme-STRIVE. This will only be treated as expenditure
once the UCs for the same will be received. Hence, an amount of Z Rs. 78.18 crore is disallowed
for the claim from the World Bank.
In this regard Half Margin no. 1 dated 23.11.2022 and draft Inspection report dated
14.12.2022 was issued, but reply is still awaited.
Dirctor(M     -III)
4