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53, Arera Hills, Hoshangabad Road, Bhopal-462011
Phone No.- 0755-2553677-78
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Report on the Project Financial Statements FY 2017-2018
To,
The Additional Principal Chief Conservator of Forest,
Green India Mission,
Satpura Bhawan, Bhopal
Report on the Project Financial Statements
We have audited the accompanying financial statements of the Ecosystem
Services Improvement Project (ESIP) financed by World Bank Loan/
Credit No. TF0A3990, which comprise of the Statement of Sources and
Applications of Funds and reconciliation of claims to total applications of
funds ior the year ended on 31" March 2018. 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. Ihose
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 our audit provides a reasonable basis for our opinion.
During certification audit, Interim Unaudited Financial Reports (IUFRs),
Schedule of Fxpenditures (SOEs), vouchers and documents related to
implementation of TSIP pertaining to FY 2017-18 were test checked.
In our opinion, the financial statements present fairly, in all material
respects, the sources and applications of funds of Ecosystem Services
Improvement Project (ESIP) for the year ended on 31s March 2018 in
accordance with the Government of India Accountinu Standards.
In addition in our opinion, (a) with respect to IUFRs, adequate supporting
documentation has been maintained to support claims to the World Bank
for reimbursement of expenditures incurred are eligible for financing under
the Loan/Credit Agreement. During audit. SOIEs/ It JIFRs and the connected
documents were examined and these can be relied upon to support
reimbursement under the Loan/Credit Agreement as per Annexure A & B.


This report is issued without prejudice to Comptroller and Auditor General
(C&AG) of India's right to incorporate any further/ detailed audit
observations in the Report of C&AG of India for being laid before
Parliament/ State or UT Legislature.
This issues with the approval of the Accountant General.
End.:- Annexure, as above.
Dy. Accountant General
AMG-3


Report on the Project Financial Statements FY 2022-2023
To,
The Additional Principal Chief Conservator of Forest,
Green India Mission,
Satpura Bhawan, Bhopal
Report on the Project Financial Statements
We have audited the accompanying financial statements of the
Ecosystem Services Improvement Project (ESIP) financed by
World Bank Loan/ Credit No. TF0A3990, which comprise of the
Statement of Sources and Applications of Funds and reconciliation of
claims to total applications of funds for the year ended on 31st March
2023. 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 or
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 evaluatinu the overall1
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
During   certification  audit,  Interim  Unaudited  Financial
Reports(1UFRs), Schedule of Expenditures (SOEs), vouchers and
documents related to implementation of ESIP pertaining to FY 20-2-
23 were test checked.
In our opinion, the financial statements present fairly, in all material
respects, the sources and applications of funds of Ecosystem Services
Improvement Project (ESIP) for the year ended on 31' March 2023
in accordance w%ith the Government of India Accouning Standards.
In addition in our opinion, (a) with respect to SOEs, adequate
Ssupporting documentation has been maintained to support claims to the
World Bank for reimbursement of expenditures incurred, and (h)
except for ineligible expenditure as detailed in audit observations in
Annexure (C) as appended to this audit report, other expenditures are
eligible for finapcing Linder the Loan/Credit Agreement. Further,


previous years disallowed expenditure is now released as per detailed
in Annexure (D).
During audit, SOEs/ IUFRs and the connected documents were
examined and these can be relied upon to support reimbursement under
the Loan/Credit Agreement as per Annexure A, B,C & D.
This report is issued without prejudice to Comptroller and Auditor
General (C& AG) of India's right to incorporate any further/ detailed
audit observations in the Report of C&AG of India for being laid
before Parliament/ State or UT Legislature.
Encl.:- Annexure, as above.
Dy. Accountant Gneral
AMG-3


Annexure-A
Statement showing sources and uses of funds, reconciliation of claims and the details of
component-wise expenditure incurred during the year 2017-18 in respect of World
Bank assisted Ecosystem Services Improvement Project (Loan/ Credit No. - TF0A3990)
Table 1: Sources and use of funds
Source and use of funds                                       Amount in Rs.
F ___        _     _ _ _ ___ ______      _ _ _ _  I                         I
Opening balance (only if bank account is used)    _a)                     0
Funds received during the year                     (b)             44.16.432
Interest earned                                   (c)                     0
T'otal Receipts                                   (d)-             44,16.432
(a)+(b)+(c) _
Total expenditure incurred during the year        (e )             44,16,291
Closing balance (only if bank account is used)    (f)                     0
Amount surrender to Govt.                         (g)                    141
Total expenditure admitted in audit                (h)             44.16.291
Amount received from world bank as per IUFR in 2017-18  (i)        44,16.291
Claimable amount from World Bank (For 2017-18)     (j)             44.16.291
compiled by audit on the basis of SOE's
Taeh! 2: Co.mponpent-w'ise reconciliation of claims and expenditure
(Amount in Rs.
Project Components                     IUFR      Actual                    Expenditure
Figures   Expenditure as  Disallowed in Admitted in
verified in audit  Audit  Audit
Component 1: Strengthen capacity of
government institutions in forestry and
44,16,291     44,16,291          0    44,16,291
land management programs in Madhya
P radesh
Component 2: Investment for improving
forest quality in selected landscapes         0             0           0           0
Component 3: Scaling-up sustainable land
and ecosystem management in selected          0             0           0           0
landscapes
Component 4: Project Management               0             0           0           0
Total                                  44,16,291     44,16,291          0   44,16,291
Sr. Audit Officer


Annexure- B
(Statement of Expenditure)
Division-wise statement of total allotment made, expenditure incurred and expenditure
allowed for reimbursement for the year 2017-18 on Ecosystem Services Im rovement
Project (Loan/ Credit No. - TF0A3990)
SI.   Name of Division    Total          Total     Disallowed in Reimbursable
No.                     Allotment     Expenditure      audit      Amount (in
(in R Rs.) (iRs.)           (in Rs.)        Rs.)
1.  LDFO, North Betul     2,50,000         2,50,000          0       2,50,000
2.    DFO,
os     gaDFO,8,98,951                 8,98,951          0       8,98,951
Hloshangabad
3.    DFO, Schore          2,19,938        2,19,938           0       2,19,938
4.   Other         11I
4. vsote     1     30,47,543       30,47,402           0      30,47,402
IDiv is ions
Total                     44,16,432       44,16,291                  44,16,291
Sr. Audit Officer


Annexure-A
Statement showing sources and uses of funds, reconciliation of claims and the details of
component-wise expenditure incurred during the year 2022-23 in respect of World
Bank assisted Ecosystem Services Improvement Project (Loan/ Credit No. - TF0A3990)
Table 1: Sources and use of funds
Source and use of funds                                       Amount in Rs.
Opening balance (only if bank account is used)     (a)                     0
Funds received during the year                     (b)           13.8 1.44.000
Interest earned                                   (C)                     0
Total Receipts                                    (d)            13,81,44,000
Total expenditure incurred during the year        (e )9,36,1286
Closing balance (only if bank account is used)    (f)                      0
Amount surrender to Govt.                         (g)             4,45.31.138
Total expenditure admitted in audit                (h)            9.33.14.932
Amount received from \\_orld bank asper lUFR in 20-23  (1)       Q.36.50.33
Amount alreadv utilized in FY 2021-22 Rs. 38.071 but                  38.071
Claimed in 2022-23 (Short claimed during 2021-22)  (  (i)-(h)
Claimable amount from World Bank (For 2022-23)     (k)            9.33.14.932
compiled by audit on the basis of SOF's
Table 2: Component-wise reconciliation of claims and expenditure
A mou -nt -in Rs.)
Project Components                      U         Actal          xpenditure  Expenditure
Figures    Expenditure as Disallowed in Admitted in
verifled in audit Audit   Audit
Component 1: Strengthen capacity of
government institutions in forestry and land  1,29,12,166  1,29,12,166  2.97.930  1.26.14.236
management programs in MP
Component 2: Investment for improx in  6.80.59.37(   6.8 0.59.370         0  6.80..120
torest quality in selected landscapes
Component 3: Scaling-up sustainable land
and ecosystem management in selected            0             0           0           0
landscapes  -
Component 4 ProJect Management         1.26.41.326    1 .26.41 .326  2.07.930  1 26 .41 .326
V otal                                 9.36. 12.862  Q.36. 12. 862  2.Q7.(-,  Q.3.1I4.Q'2
Amount short claimed in FY 20I -S( 38.071                     0           0           0
Total                            9,36,50,933   9,36,12,86    2,97,930  9,33.14,932
Sr. Audit Officei


Annexure- B
(Statement of Expenditure)
Di lison-wise statement of total allotient made, expenditure incurred and expenditure
allowed for reimbursenient for the year 2022-23 on Ecosystem Services Improvement
Project (1 oan/ Credit No. - TF0A3990)
SI.   Name of Division     Total          Total      Disallowed   Reimbursable
N                        Allotment     Expenditure    bv audit   Amount (in Rs.)
(in Rs.)       (in Rs.)      (in Rs.)
i iA. No: h  c1u i1 82.27.0  0      .76,70.015                   76,70  1 5
DV!O. I loshangabac   2.65.52.000   2,63.56,834                - 2.63.56.834
3    DFO,ehore            1.28.27,000    1,10,93 874         0       1.0 93,874
4  R&E Bhopal          5.93.25,000    3,62,04,370         0       3,62.04,370
5.   Other 69 Divisions    2.12.13.000     22.87.769    2.97.930       19.89.839
Sota1 3,81,44,000                        9,36,1 2,862   2,97,930     9,33,14.932
Sr. Audit Officer


Annexure-C
Statement showing the details of disallowance made from the  expenditure
incurred during the year 2022-23 in respect of World Bank assisted Ecosystem
Services Improvement Project (Loan/ Credit No. - TF0A3990)
Project Component/ Name of 'Diision  Amount                son
Expenditure onl                      (in Rs.)
Component 1   1    DFO (G) Guna        1,48,900 For want of Utilization
DFO(T) Mandsaur      1,49,030 certificate and Vouchers
Tl'otal                                2,97,930
Sr. Audit Officer


Annexure- 1)
Staterment showing the details of disallowance made from the expenditure
incurred durin2 the previous years now released
SI No     Year of    Component Amount now             Remarks
disal Lowance    No.      released (in
R s.)
'J18-I9         2          2,68,144 Allowed as per agreement
Clause  "100  percent of
expenditure (inclusive of
Taxes) to be financed"
018-19         3         26,24,401 Allowed   as  per  office
memorandum of MoIFCC-
"Component 3 is allowed to
20i9-20        2            ,44,937 Allowed as per agreemenlt
Clause  "100  percent of
expenditure (inclusive  of
Taxes) to be financed"
4       2019-20        3          15,11,000 Allowed   as  per  office
nenorandun of MoFCC-
"'Component 3 is allowed !o
Mp"i
TOTA L                    50 ,48,482
Sr. Audit Officer


AIDE MEIOIRE ON AUDIT OBSERVATIONS ISSUVI TO THE ADDITIONAL PRINCIPAL CHIEF CONSERVATOR
OF FOREST, GRVA--N INDIA MISSION, BiOPAL. IN RESPECT OF WORLD BANK ASSISTED FCOSNSTEM
SERVICES IMPROVEMENT PROJECT (LOAN/ CREIT NO.- TF0A3990)
I H-IM  Subject/ Objection                                                               Reply of         Action taken
No.                                                                                     Department
1.     Subject: - Providing of information/ records pertains to FcosNstern Services Improvement Requisite records Audit exercise \%ere
Project (ESIP) for financial year 2017-18 & 2022-23                              along-with details performcd    on
Audit for the activities mentioned in Annual Plan of Operation (APO) under IEcosystcm of allotment and  records  produced
Services Improvement Project (I.SIP) for the financial year 20 17-18 & 2022-23 has been taken expenditure were by the department.
up from toda\- In this connection. VoU are requested to provide following information/ records provided by the  Hence, HM ma\ he
pertain to APO for the year 2017-18 & 2022-23 under ESlP:                        department.      dropped.
1.     Details of allotment made to and expenditure incurred by all Project
Implementation Units (Plts) involve for activities of APO (2017-18 & 2022-23) under ESIP in,
followin format;
SI. No.   Name of PWl   Allotment      Expenditure
(Rs. in lakhs)  (RsJn lakhs)
3.
4.
Total
2. Correspondence file ,Nith World Bank. Insructions issued b\ World Bank.
3. Statement of Expenditure(SOE) 2017-18 & 2022-23
4. Project Appraisal Document and Project Implementation Plan and cost table for APO forl
2017-18 & 20'2-23,;
5. Approved APO for financial year 2017-18 & 2022-_3 under Ecosystem Services
Improvement Project (ESIP) and it's subsequent revisions, itf an.
6. Utilization Certificates! completion certificates obtained from each PlU for the fund
allotted in the year 2017-18 & 2022-23;
7. Followving- files pertain to the activities of APO for 2(017-18 & 2022-23_, if maintained in
your office may also be prov ided to audit;
a) Files of (irculars/ Instructions and Guidelines issued hV Vour officc;-


b) Sanction Files;
c) Purchase Files;
d) Training Files:
5. Apart from the above, followint records as maintained in each PiU for the activities of APO
2017-18 & 2022-23 are also requested to provide:
a) Progress Reports of cach Pil, for Ilie year 2017-18 & 2022-23;
b) Cash Books. Stock Register. leasurement Books. Monthly Vouchers Files;
c) Cheque Issued Certificates, as issued by District Treasury;
d) Purehase Files, work orders, quotation files and Train  Files.
2.    Su bject: Information regarding allotmeiii and expenditure during Ilie year 2022-23 related to ISI P  Information  Filed
Please provide informationregarding alloimen and expenditure during the year 2022-23 related to 1 SI)  Provided
(in the attatched annexurce).Further, it is alo requested to provide the copies of all documents b\ \\ hich
the fi,ures were obtained.
3.   ftqw: s1ifci W.:W rr wa  W4   a                                                     produced          Filed
ESIP n)5dl #6YT TEFý # RiMZ 3IT     ~ * 2022-23 i  R-Ri kT 2 qTm 7m t ntucdlci
1. ET3  WT 3Trfk (component 2.2.1) trT t. 20,95,8501- ac z fzr T M Týrm -iaT  i  r vm  3Nw   3TFM-
M cai 1z 3Rf21ar i vwm xrRt vå 2,1ed n 12-0 u: -rft af 7r* t †¯CT 3-w URr ;k
2.~f ~i wr RftaTur  iit Ptt wautel & NTer vfIâTaur ## Wrà *  3q1-fA qir   ida@    T
2.~ ~   ~    ~~~~I T#  ~ai-li k; m- 1 kU  ik&  ; n f 3T 4~3I.  FN fqr
1   Rural Skill Development  Driing  Trade  20i28.02.23               325000
Institution (hhindwara  Trainmiig / 26
2   Rural Skil Devclopment  Automobile  Trade 21 28.02.23            375000
Institution t. hihi ndwara  Traing / 30
iFTAT ~ 3 4 iE  <- f  ~ W


4.   å   :   ETf-tR? ýS  \  +$    AP) PO k31    -      TTT I  - U. 20.64 MT 15[~1  Provided        fl led
T- g e t-vFmf-¥1åde UTT          -Fi4Ued T[ TC¯t     54-:5m42 RvjicE (ES SP) -
mTfTUT  UT UMfT 4 3iTd'd Í1ft f  5  2 017 18 T  2022-23 4    W6Ídi få41 ,
3j' fyM 5    - 3T -1    -   - Tit 1'4T MW9TT  -T 2022-23        f   
A PO/ fe49UT -efT 14 ;-4t ý 39CR -P4 9'E-9T 9TT T1TNT
SL.No. Component/Item                    xpenditure Amount in Rs
2. 1.2.3 Fencing,                                        303261
2      2. 1.33 Site Prepanition                              1664 165
2 1.3.9 Soil Moisttre Conservation \\,rk                309107
T otal                                                206.3598
41 (U          - 3TT T N  44fTf f4 e   i  3   Tý M-  _Ef -T _f
 fw:  TfR afaw w 3ift  r  r                                                  Provided         Included       in
ESIP zn51i1 t 3Ti~ c"F¯:  ~  -  -Er 24.64 US$ Million ;. 165.09 W-g # # JMW i9-   4 w.          Certilicate
8.96 USS Million ;. 60.03  di fF i  rt V rt¯ 3TfFi4 V-     -rçtY  -rE-r R  7k # WT TI
t ff :-i
1. 1 2022 -23 d- ýgr -TAT w. 60.30  -zw f474 UrT   1    ~    Ufik dt  w ¥. 0.27 tg
2. ESIP C5-11 4, component 3 4 J *- 447T T approved reappropriation i 3TJ1m W. 0.40 ;w,Ù
edì‡  k  vm av ( ir- component 3 J  * 2018-19 9 ; 26,44,401 viN 2019-20 # w. 15,11,000
-. 41,55,401 ~czm § f    tf  ‡  Ufkt # f. 1,55,401 3Rfí- ý  |
6.  %nV: -91 2017-18 4 nT~ù- 3TÍ         xr4t LTT  4 -Tfëfi   TTqrg TfR - T-fri eÍ r  -;:r f"4  Provided  Filed
ESIP " 2017-18 & 2022-23 ffg i-f~ -, u Tft åu1TUa ågNit N- TMTtc t T g -,fTTH 3T-T
k4r,f- ýT-kci oÈfwgT 3q-r--,4-8 Í0 k4U TP ' 1-4-T& ý4,kf ii 20 17-18  9PAWdÙff 3TÍý %tÉiTÉ


7.     r    YWf     3fi 3 r ra                                                                 UC/ Vrs reated to lncluded/disallowed
ESIP   3T dåd M  T ¶-cTRT           d 2022-23      i~ ~r~r ZU  «   Í T Ma  3 r Mr   Td eDFO     Gunla  &   In Audit Certificate
Mandsaur      not
a2Fi wý 7,rg    -2w t                                  ~provided
Division               ExpenditureAnount
D1() (G) Guna                                     148900
D1 () ('1) Mandsaur                                 9030
1)() Obedullahgaij. Raisen                      117000]
D1 0 Shiv>uri                                    149908]
D1 ( ) 3lurhanpur                                 321300
1 otal                                           8,86,138j
3-AT     T   3-g Um_       T_    r   r-_   T    Tr
Sr. Audit Officer