AUDITOR'S REPORT Audit Completion Date: 02/11/2022 To Secretary Economic Relations Division (ERD) Ministry of Finance Sher-e-Bangla Nagar, Dhaka- 1207. Opinion status: Unqualified. We have audited the accompanying Financial Statements of "Rural Electrification and Renewable Energy Development Project (REREDP-I)" UTC Bhaban, (16 floor), 8 Panthapath, Karwan Bazar, Dhaka, 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 on 30th June 2022 and a summary of significant accounting policies and other explanatory notes. In our opinion, the project Financial Statements present fairly, in all material respects the cash and cash equivalents of the project as on 3O'' 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 guideline and agreement. Basis for opinion: We have 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 IDA 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 misstatements, 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 not a guarantee that an audit conducted in accordance with GASB which are based on ISSAI will always detect a material 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 misstatements 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 override 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 entity's 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 achieve fair presentation. Report on Requirements of the Development Partner: In accordance with the Project, Agreement was signed between IDA and Economic Relation Division (ERD) on behalf of Govt. of Bangladesh on January, 2018, 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 in compliance with established proper procedures and according to the provisions of the financing agreements/ loan Disbursement handbook, and guidelines on financial management and analysis of project issued by the IDA. (c) The procurement of goods, services and civil works have been made in accordance with the financing agreements and IDA procurement regulations; (d) The PMU has complied with covenants specified in the Loan agreement. (Tasnim Ferdous) Deputy Director For Director General Foreign Aided Prolects Audit Directorate Tel: +8802-226663612. Financial Statement ,oject financial statements ..s of and for the years ended 30 June 2022 2nd AcidItitiOnal financing for REREDP-I funded by The World Bank Credit No. 1DA-6202 , . Opening balance For the year Closing balance as as on 1 July 2021 Ended on 30 June 2022 (cumulative prior 30 June 2022 (cumulative - - _ period) (current period) current period) Government of Bangladesh 6 - Loan from development partner 7.1 208,849,099 - 208,849,099 Grant from development partner 7,2 952,342,178 510,462,655 1,462,804,833 Other resources 8 1,292,758 (741,946) 550,812 Cash opening balance 5 - 88,465,092 Total. -esoures 1,162,484,035 598,185,800 1,672,204,743 Ex pelditure and Cash 1. Sub-Loans to POs for installing RAPSS in the 163,432,186 37,064,612 200,518,798 rural areas of Bangladesh (Cat-1) AE 6342167,41200569 2.Goods, Consultants' Services for AE (Cat-2) 181,044,825 119,141,064 300,185,890 3.Goods, Consultants' Services for HE (Cat-3) 203,511,166 183,803,198 387,314,364 4, Sub-Grants-Biogas (Cat-4): HE 107,547,500 550,000 108,097,500 5. Sub-Grants-lCS (Cat-4): HE . 418,483,264 247,990,053 666,473,317 Total Fxpenditure 1,074,018,943 588,568,927 1,662,587,870 closinig Balance Imnpr Est account -- operating aCCOunt (RPA) .88,465,092 9,616,873 9,616,873 operating account (GOB) -- Total Expenditure & Cash_5 1,162,484,036 598,185,800 1,672,204,743 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. e ie cont Md. Imrul Hasan Intastrubtute ieed (\CO) AVP & Unit Head. Financial .Comnpanyi Reporting, Control & Taxation infrastructure Development Company Limited (LDCOL) GOOXtV\'~ 2 j Statement of the Project sources and uses of funds of 2nd Additional Financing for Rural Electrification and Renewable Energy Development (RERED \\) Project funded IDA under Loan no IDA-6202 As of and for the year ended 30 June 2022 In BDT Actual Budget Difference For the year For the year Cumulative as For the year Notes ended 30 June Cumulatie as ended 30 on 30 June ended 30 June Cumulatie as 2022 on 30 June 2022 Jn20202222 on 30 June 2022 2022 June 2022 2022 2022 Cash and bank balances as at 1 July 2021 5 88,465,092 - 88,465,092 Add: Funding from Government of Bangladesh 6 - - Loan from Development Partner 7.1 - 208,849,099 - 208,849,099 - . - Grant from Development Partner 7.2 510,462,655 1,462,804,833 510,462,655 1,462,804,833 -- Funding from other sources 8 (741,946) 550,812 - (741,946) 550,812 Total financing 598,185,800 1,672,204,743 598,927,747 1,671,653,931 (741,946) 550,812 Exchange differences - - Other income - - Total resources (financing and other receipts) 598,185,800 1,672,204,743 598,927,747 1,671,653,931 (741,946) 550,812 Less: Expenses from Government of Bangladesh 9 - - - Expenses from Development Partner 10 588,568,927 1,662,587,870 588,568,927 1,662,587,870 - - Expense from other sources 11 - Total Project expenses 588,568,927 1,662,587,870 588,568,927 1,662,587,870 - Exchange rate differences - - Other expenses - - Total Project expenses and other expenses 588,568,927 1,662,587,870 588,568,927 1,662,587,870 - - Cash and bank balances as at 30 June 2022 5 9,616,873 9,616,873 10,358,820 9,066,062 (741,947) 550,812 The annexed notes I to 12 form an integral part of these special purpose financial statements. Becky Christopher Rozarlo Senior Officer, Finance & Accounts Infrastructure Development id. Imrul Hasan Company Limited {lCOL) AVP & Unit HeacL Financial Repordng Control & Taxation infrastructure Development Company Limited (IDCOL) Stpr ;ment of uses of funds by Project activity and comparison to budget As of and for fhe years ended 30 June 2022 IDA-6202 Actual Budget Grant/Loan For the year Cumulative of 30 For the year ended Cumulative of 30 ended 30 June June 2022 30 June 2022 June 2022 2022 Category-1: Sub-Loans to POs for installing RAPSS in the 37,084,612 200,516,798 37,084,612 200,516,798 rural areas of Banad Catego -2: Goods, Consultants' Services forAE 119,141,064 300,185,890 119,141,064 300,185,890 Catego 3 Goods, Consultants' Services for HE 183,803,198 387,314,364 183,803,198 387,314,364 Gate o S rants-Bigas 550,000 108,097,500 550,000 108,097,500 Gate 247,990,053 666,473,317 247,990,053 666,473,317 Total 588,568,927 1,662,587,870 588,568,927 1,662,587,870 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. Md. RmruB Hasan o htfrxarAAVP & Unit Head, FinancIal ?C inahce rkprcn Repordtng, Control & TaxatiOn C)IIan( LoDilo 0pmon lnfrastructure Development in, Lkrmcturo OL) Company Limited ILDCOL) statement on cash flow on operating account #9429 As of and for the years ended 30 June 2022 Balance as of 1 July 2021 45,957,876 Receipt from Government Receipt from Development Partner 537,761 Bank interest Exchange rate difference -------- Total537,761 Total Amount of eligible expenses 37084,612 Bank charges, AIT and transfer to SB 977,75 Exchange rate difference Total 3,2317 Balance as of 30 June 2022 8,433,319 The annexed notes I to 12 form an integral part of these special purpose financial statements. Becky Christopher Rozario tAd e eeonn Senior O Iicer, HiRCC & Accovnts ~ptn.Cn0 Ipe~ infrasructuiernied (cCOL) oDean ~nfa51Ucl~reDevlopment lIal o0* Compan)y UMRL3d (IDCOL) Statement on cash flow on operating account #8680 As of and for the years ended 30 June 2022 Balance as of 1 July 2021 42,507,216 Add: Receipt from Government Receipt from Development Partner 323,357,587 Bank interest 883,335 Exchange rate difference 4 Total324,240,922 Less: Amount of eligible expenses 364,379,247 Bank charges, AlT and transfer to BR 1,185,337 Exchange rate difference - Total 365,564,584 Balance as of 30 June 2022 1,183,564 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. lnmtLI~~c eO men Md. IMFIL Hlasan~ I, pantr Limited fIDCOL) AVp & Unit Head. pinanclal o aporting, Contol & TaxatIOR Infrasucture DeVeIopmelt Company Limited (IOCOL) Notes to the financial statements *I General information I DCOL channels grants and provides soft loans for the development of rural infrastructure i.e. renewable energy. Since 2002, IDCOL is implementing renewable energy development projects. A Financing Agreement was excuted between International Development Association (IDA) and Government of Bangladesh (GoB) on 30 May 2018 under Additional Financing 11 for REREDP 11 (IDA Credit No. 6202-BD). IDCOL, on the other hand, entered into a Subsidiary Loan Agreement and a Subsidiary Grant Agreement with GoB on 20 August 2018 where GoB made SDR 20.6 million available to IDCOL (as Sub-loan) for financing in Remote Area Power Supply Systems (RAPSS) and another SDR 17.2 million as (Sub-grant) for supporting IDCOL for payment of costs associated with procurement of goods, consultants' services, training etc. in connection with the implementation of the project. Besides, the grant amount is also used for installing household biogas plants and energy efficient Improved Cook Stoves (ICS). The closing date of the project is 18 December 2023. 2 Significant accounting policies Basis of preparation The financial statements of the Project have been prepared in accordance with IPSAS Financial Reporting under the Cash Basis of Accounting, and in compliance with the Project Account Manual issued by the Finance Division, Ministry of Finance, Government of Bangladesh and the covenants of IDA-6202 loans and grants agreements. These special purpose financial statements reflect the data for the year ended 30 June 2022. Under the basis of accounting, financing is recognized when received rather than when earned and expenses are recognized when paid rather than when incurred. Expenses are resources directed for the. payment of works, goods and services, recognized in the financial statements in the period when they are paid. Financing According to the disbursement guidelines, World Bank may advance funds into the designated account of the borrower (IDCOL) known as initial advance. Besides, World bank may make payments at the borrower's request to the third party known as direct payment. Another way is World Bank may reimburse to the borrower for eligible expenditures that the borrower has prefinanced from its own sources known as Non SoEl reimbursement procedure. Finally, initial advance disbursed to the designated account may be replenished based on the actual expenditures as requested by borrower known as SoE/ replenishment procedure. Expenses Consistent with the cash basis of accounting, the Project expenses are recognized and included in the special purpose financial statements when the payment is actually made or the loan is disbursed. Functional and presentation currency BDT is the national currency of the Government of Bangladesh. The special purpose financial statements of the Project are presented in BDT (presentation currency) and rounded to the nearest integer of BDT. Income and expenses denominated in USD are converted into BDT applying the exchange rate set out by the Bangladesh Bank on the date of the transaction. Account balances denominated in BDT are converted into USD applying the exchange rate set out by the Bangladesh Bank at the reporting date. As of 30 June 2022, the exchange rate is BDT 93.45IUSD Md, Imrl Hasan A\VPI & Unit llead, Financial Becky Christopher RozaTio Report&ng, Control aan on Senior Officer, Finance & Accounts Infrastructure Development Infrastructure Development Cmnpany LAmited (IDCOL) Cornany Limited (IDCOL) 3 Taxation According to the Loan/Grant Agreement, the loan and grant amounts should not be used to pay any taxes and duties. 4 Fixed Assets Any fixed assets purchased from Technical Assistance (TA) fund allocated under the project are recorded as expenditure under goods category. These goods are recorded separately as fixed.assets in I DCOL's books of accounts. Due to the cash basis of accounting, the fixed assets procured under the Project are measured on the basis of cost of procurement and reflected in the special purpose financial statement as expenditures instead of capitalization in balance sheet. Considering non-commercial status of the Project and cash basis of accounting, depreciation for the fixed assets is not accrued under the project FS. However, depreciation are accrued and recorded in IDCOL's books of accounts. 5 Cash and bank balances I Cash and cash equivalents The project has two CONTASA operating accounts maintained with Agrani Bank Ltd. Tejgaon Branch. Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) Imprest account - - - Operating account (RPA) -8680 42,507,216 8,433,319 8,433,319 Operating account (RPA) -9429 45,957,876 1,183,554 1,183;554 Operating account (GOB) - Total 88,465,092 9,616,873 9,616,873 6 Funding received from Government of Bangladesh Funds are allocated by the Government of Bangladesh to cover GOB's share of eligible project Loan Receipt. (in taka) Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to.30 (inception to 30 June 2022 June 2021) June 2022) Disbursement by GOB - - - Less: Refund to GOB - - . - Total -J- Becky Christopher Rozario M, ffi Hasan Senior Ofier, Finance & Accounts AVP & Unit Head. Financial Infraskructure Developmont ieporting. Control &Taxation Company Limited OCOL) infrastructure Development (:ompany Limited [IDCOL) '.1 Loan received from Development Partner VVorld Bank has provided funds to the Project to cover its share of eligible project expenditure. These Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) SOE Procedures 108,849,099 108,849,099 LDirect payments - I mprest account replenishments - Others (initial advance) 100,000,000 100,000,000 Total 208,849,099 - 208,849,099 7.2 Grant received from Development Partners opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) SOE Procedures 442,250,469 323,357,587 765,608,056 Direct payments Imprest account replenishments - - Others (Initial advance & Reimbursement) 510,091,709 187,105,068 697,196,777 Total 952,342,178 510,462,655 1,462,804,833 8 Funding from other resources Other resources consist of the following Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) Project revenues - - - Bank Interest-AE-8680 4,219,395 537,761 4,757,156 Bank Interest-HE-9429 4,076,535 883,335 4,959,870 Exchange gain and loss - - Less: TDS on interest, bank charges & 7,003,172 2,163,042 9,166,214 transfer to govt. treasury (CONTASA) Total 1,292,758 (741,946) 550,812 Becky Christopher Rozaio vd. 11xu iiasan Senior Officer, Finance & Accounts AVP & Unit lezd, in.iclai Infrastructure Development Rworting. contolo& Ta" Company Limited (IDCOL) Infrastruct Ire evelop ent Company Limited iC0L3 9 Expenses from Government fund In BDT Actual Budget Difference For the year For the year Cumulative as For the year ended 30 June Cumulatie as ended 30 on 30 June ended 30 June Cumulatie as 2022 on 30Jn22 June 202 22 2022 on 30 June 2022 2022 June 2022 2022 . 2022 Category-1: Sub-Loans to POs for installing RAPSS in the rural areas of Bangladesh Category-2: Goods, Consultants' Services for AE - Category-3: Goods, Consultants' Services for HE Category 4: Sub-Grants-Biogas Category 4: Sub-Grants-ICS Total Project expenses - - 10 Expenses from Development partners In BDT Actual Budget Difference For the year For the year Cumulative as For the year ended 30 June ended 30 on 30 June ended 30 June 2022 on 30 June222 June2022 2022 2022 on 30 June 2022 Category-1: Sub-Loans to POs for installing RAPSS in the 37,084,612 200,516,798 37,084,612 200,516,798 rural areas of Bangladesh Category-2: Goods, Consultants' Services for AE 119,141,064 300,185,890 119,141,064 300,185,890 Category-3: Goods, Consultants' Services for HE 183,803,198 387,314,364 183,803,198 387,314,364 - Category 4: Sub-Grants-Biogas 550,000 108,097,500 550,000 108,097,500 - Category 4: Sub-Grants-ICS 247,990,053 666,473,317 247,990,053 666,473,317 - Total Project expenses 588,568,927 1,662,587,870 588,568,927 1,662,587,870 - - Becky Christopher Rozario AV P uniead Fiancl Senior Oficer, Fnance & Accounts Ao n & nt & Taxation infraLstructure DeVBIOPme`t nrsructure Development Comnpany Limited (MDCOL) CLmpany Limited (IDCOL) ).1 ,,corociliation of expenses by funding methods Nature of expense claim Category 1 Category 2 Category 3 Category 4 Amount Amount Difference received Claimed O E 4.702,552 20,603,926 298,051,110 323,357,587 323,357,587 - irect payrnents - - - - nprest account - ithers 78,523,260 108,581,808 - 187,105,068 187,105,068 - otal expeises claimed 3 1 29,185,734 298,051,110 510,462,655 - leamiorandurnrecord dd Expenses not claimed at yar - 60,625,415 54,617,464 3,652,365 nd dd: Expenses claimed by 37 084,612 - locumentation ess: Expenses related to previous 2,226,458 51,444,392 ears claimed this year I 2_26,5851.4439 f0tal expeditur iii i 37,084,612 131,624,768 183,803,198 250,259,083 10.2 Summary of Withdrawal Applications (SOE) No. Date Category I Category 2 Category 3 Category 4 Amount Amount Difference received Claimed IDCOL-AFlI-GRA-12 25-Oct-21 _ 3,078,714 6,754,475 86,418,375 96,251,563 96,251,563 - 1DCOL-AFII-GRA-14 14-Dec-21 - 1,183,154 4,744,914 69,682,320 75,610,388 75,610,388 - IDCOL-AFII-GRA-16 19-Apr-22 - 202,030 8,976,758 71,511,150 80,689,938 80,689,938 - IlDCOL-AFll-GRA-17 26 May-22 - 238,654 127,778 70,439,265 70,805,697 70,805,697 - fo-tal .4,702,652 20,603,925 298,051,110 323,357,587 323,357,587 - 10.3 Summary of Withdrawal Applications (imprest Account Replenishment) No. Date Category 1 Category 2 Category 3 Category 4 Amount Amount Difference received Claimed 10.4 SujMmary of Withdrawal Applications (Direct Payment) No. Date Category I Category 2 Category 3 Category 4 Amount Amount Difference received Claimed 10.5 Summary of Withdrawal Applications (Others- Non-SoE/Relmbursement) No, Date Category 1 Category 2 Category 3 Category 4 Amount Amount Difference received Claimed lDCOL-AFll-GRA-3 25-Oct-21 - 42,339,264 51,390,636 - 93,729,899 93,729,899 - IDCOL-AFII-GRA-15 30-Dec-21 - 36,183,996 57,191,173 - 93,375,169 93,375,169 Total I____ - 78,523,260 108,581,808 - 1r7c105v06 Claied105,068__ Bec l CMkopher Rozarto Sen\of Olficoi, Firance & Accounts Md. lnrvl HasanR t[lfastructuo DoveP(lont AVp & UnittHead,Financ Company Limited (IDGOL) Reporting, ContrOl & Taxation Infrastructure Development Company Limited iDCOL) 11 Expenses from other resources In (currency) Actual Budget Difference For the year Cumulative as For the year Cumulative as For the year Cumulative ended30June on30June ended30 on 30June ended 30June ason 30 2022 2022 June 2022 2022 2022 June 2022 Consultant fee - - - Operating cost ---- Others -- - - - Total Project expenses - - - Note: According to IPSAs 1.7.8 (c) an explanation is required about the material difference between the budget and actual amount. 12 Project implementation As of 30 June 2022, overall 35% of Grant/Loan has been implemented in the framework of the IDA-6202 agreement. The project expenses by categories are presented in the tables below: Budgeted Project Expenses as Budget as of expenses as Total implementation Of 30 June 2022 30 June 2022 of 30 June Project Budget as of 30 June in BDT in BDT 2022 (in in BDT 2022 percentage) (in percentage) Category-1: Sub-Loans to POs for installing RAPSS in 200,516,798 200,516,798 12% 2,556,068,816 8% the rural areas of Bangladesh Category-2: Goods, Consultants' Services for AE 300,185,890 300,185,890 18% 428,079,486 70% Categoy-3: Goods, Consultants' Services for HE 387,314,364 387,314,364 23% 843,750,871 46% Category 4: Sub-Grants-Biogas 108,097,500 108,097,500 90% Categor 4: Sub-Grants-ICS 666,473,317 666,473,317 Total Project expenses 1,662,587,870 1,662,587,870 100% 4,690,262,197 35% Md. Imrul Hasan Becky Christopher Rozari AVP &Unit Head financial Senior oicer, Finanbe & Accounts Reportin& Control & Taxation Infrastructure Development Intratitctura Development Company irnited (IDCOL) CotpanIiy Iblnste4 1C00O) ?roject financial statements As of and for the year ended 30 June 2022 REREDP-I fUnded.by The World Bank Credit No. IDA-5158 _ Opening balance For the year Closing balance as Resources Notesas on 1 July 2021 ended on 30 June 2022 (cumulative prior 30 June 2022 (cumulative period) (current period) current period) Government of Bangladesh 6 - .- Loan frorn development partner 7.1 9,360,065,489 70,312,518 9,430,378,007 Grant frorn development partner 7,2 1,041,321,608 - 1,041,321,608 Other resources 8 1,841,688 (1,123,769) 717,919 cash opening balance 5 - 19,884,117 - Ttlrore10,403,228,785 89,072,867 10,472,417,534 Expenditure and Cash . 1. Sub-loans to POs for installing SHS in the rural areas of Bangladesh (Cat-1): AE 7,993,068,535 - 7,993,068,535 2. Sub-loans to POs for installing RAPSS in 1,115,149,299 35,209,136 1,150,358,435 the rural areas of Bangladesh (Cat-1): AE 115499 52,31 0583 3.Goods, consultants' services (Cat-2): AE 381,663,975 - 381,663,975 4. Sub-grants-blogas (Cat-3). HE . 22,694,000 - 22,694,000 5. Sub-grants-ICS (Cat-3): HE 599,450,266 - 599,450,266 6.Goods, consultants' services (cat-3): HE 271,318,593 - 271,318,593 Total Expenditure 10,383,344,668 35,209,136 10,418,653,804 Closing B3alance imprest account Operating account (RPA) 19,884,117 53,863,731 53,863,731 Operating account (GOB) -- Total Expenditure & Cash 5 10,403,228,785 89,072,867 10,472,417,534 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. Becky Christopher Rozatio Md. 1marul lasan Senior OIicer, Finance & Accounls AVP & unit Head, riandal Inrastructuro DovelCOpmOt wortini controk & Taxatign Company Limited (CDOL) A"DeIO <_V IP" Statement of the Project sources and uses of funds of Rural Electrification and Renewable Energy Development (RERED 11) Project funded by IDA Loan no IDA-SI58 As of and for the year ended 30 June 2022 In BDT Actual Budget Difference For the year Cumulative s For the year Cumulative as For the year Notes ended 30 June a ended 30 ended 30 JuneCulaies Notes 2nde0 Ju on 30 June 2022 Jne20 on 30 June2022 2022 on 30 June 2022 2022 June 2022 2022 Cash and bank balances as at 1 July 2021 5 19,884,117 - 19,884,117 - - Add: Funding from Government of Bangladesh 6 - Loan from Development Partner 7-1 70,312,518 9,430,378,007 70,312,518 9,430,378,007 Grant from Development Partner 7.2 - 1,041,321,608 - 1,041,321,608 - Funding from other sources 8 (1,123,769) 717,919 - - (1,123,769) 717,919 Total financing 89,072,867 10,472,417,534 90,196,635 10,471,699,615 (1,123,769) 717,919 Exchange differences - - - - - - Other income - Total resources (financing and other receipts) 89,072,867 10,472,417,534 90,196,635 10,471,699,615 (1,123,769) 717,919 Less: Expenses from Government of Bangladesh 9 - -- Expenses from Development Partner 10 35,209,136 10,418,553,804 35,209,136 10,418,553,804 - Expense from other sources 11 - -- Total Project expenses 35,209,136 10,418,553,804 35,209,136 10,418,553,804 Exchange rate differences - - - - Other expenses - - - - - - Total Project expenses and other expenses . 35,209,136 10,418,553,804 35,209,136 10,418,553,804 - Cash and bank balances as at 30 June 2022 5 53,863,731 53,863,731 54,987,499 53,145,511 (1,123,769) 717,919 The annexed notes I to 12 form an integral part of these special purpose financial statements. Becky Christopher Rozario Senior Officer, Finance &Accounts md. Imru) Masan infrastructure Development AVP & Uift HeLd, FinancW Company Limited (DCOL) Reporting Contro & TxatIon Infrastructure Deeopmecnt Company Limited (IDCOL) ,terTi ent of uses of funds by Project activity and comparison to budget s of and for the years ended 30 June 2022 )A.5 1 68 Actual Budgeted irant/Loan Cumulative of 30 Cumulative of 30 ended 30 June ended30June 2022June 2022 June 2022 ;ategory 1: Sub-loans to POs for installing SHS in - 7,993,068,535 - 7,993,068,535 he rural areas of Bangladesh 3ategory 1: Sub-loans to POs for installing RAPSS 35209136 1,150358,435 35209,136 1,150,358,435 n the rural areas of Bangladesh 32 16 ,05 5 0161054 ategory 2: Goods, consultants' services - 381,663,975 - 381,663,975 C;ategoy 3. Sub-grants-bNoas- 22,694,000 - 22,694,000 - 599,450,266 - 599,450,266 Catego 3: Goods, consultants' services - 271,318,593 - 271,318,593 Total 35,209,136 10,418,553,804 35,209,136 10,418,553,804 The annexed notes I to 12 form an integral part of these special purpose financial statements. Mdomnra nas3u BeCYLbt top~r Ro81iOAVPUnipt liea&L inancial Se iMoiiC FnfRv&MOUNO RepCTtdn&S contmi & Taxation IolrbSuctur 0O~olprnoinfrastrt'a"~ Deveopmn C ompOV Lmite (ICOtYtCompanly kIjflted (tDCOLJ) Statement on cash flow on operating account #36002248 As of and for the years ended 30 June 2022 Balance as of 1 July 2021 19,693,191 Add: Receipt from Government Receipt from Development Partner 70,312,518 Bank interest 1,078,066 Exchange rate difference Total 71,390,584 Less: Amount of eligible expenses 35,209,136 Bank charges, AIT and transfer to BB (CONTASA) 2,201,045 Exchange rate difference Total 37,410,181 Balance as of 30 June 2022 53,673,594 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. Biecy chrislophe RoZAIo Seniof Officer, Finance & Accounts Id. ITrui Mason Infrasruclufe D'volopmetlt AVP & unit Head, FinaocW Inmakrl Limited ODGOL-) AP&Ui ed iac comipany Lim ed D )Iteporting, Control & Taxation Infrastructure Development Company Limited (IDCOL) Statement on cash flow on operating account #36002256 As of and for the years ended 30 June 2022 Balance as of 1 July 2021 190,926 Add: Receipt from Government Receipt from Development Partner 5 Bank interest - Exchange rate difference - Total 5,500 Less: Amount of eligible expenses 6 Bank charges, AIT and transfer to BB (CONTASA) 6289 Exchange rate difference . Total 6,289 Balance as of 30 June 2022 190,136 The annexed notes I to 12 form an integral part of these special purpose financial statements. &ristopher Rozaoo 5gnior Olicer fipane & AV?C&UUI' InIfastruct'y 0 Deeomn Apwd& wao & cnnfy Limited klocol) mtt,4elapcOLt company Oritc ' Notes to the financial statements 1 General information IDCOL channels grants and provides soft loans for the development of rural infrastructure i.e. renewable energy. Since 2002, IDCOL is implementing renewable energy development projects. A Financing Agreement was executed between International Development Association (IDA) and Government of fangladesh (GoB) on 23 October 2012 under REREDP II (IDA Credit No. 5158-BD). IDCOL, on the other hand, entered into a Subsidiary Loan Agreement and a Subsidiary Grant Agreement with GoB on 10 January 2013 where GoB made USD 110.8 million available to IDCOL (as Sub-loan) for financing Solar -lome Systems (SHSs), other renewable energy projects and another 17.19 million for supporting IDCOL for payment of costs associated with procurement of goods, consultants' services, training etc. in connection with the implementation of the project. The closing date of the project is 18 December 2023. 2 Significant accounting policies Basis of preparation The financial statements of the Project have been prepared in accordance with IPSAS Financial Reporting under the Cash Basis of Accounting, and in compliance with the Project Account Manual issued by the Finance Division, Ministry of Finance, Government of Bangladesh and the covenants of IDA-6202 loans and grants agreements. These special purpose financial statements reflect the data for the year ended 30 June 2022, Under the basis of accounting, financing is recognized when received rather than when earned and expenses are recognized when paid rather than when incurred. Expenses are resources directed for the payment of works, goods and services, recognized in the financial statements in the period when they are paid. Financing According to the disbursement guidelines, World Bank may advance funds into the designated account of the borrowers known as initial advance. Besides, World bank may make payments at the borrower's request to the third party known as direct payment. Another way is World Bank may reimburse to the borrower for eligible expenditures that the borrowers has prefinanced from its own sources known as Non SoE/ reimbursement procedure. Finally, initial advance disbursed to the designated account may be replenished based on the actual expenditures as requested by borrowers known as SoE/ replenishment procedure. Expenses Consistent with the cash basis of accounting, the Project expenses are recognized and included in the special purpose financial statements when the payment is actually made or the loan is disbursed. Functional and presentation currency BDT is the national currency of the Government of Bangladesh. The special purpose financial statements of the Project are presented in BDT (presentation currency) and rounded to the nearest integer of BDT. Income and expenses denominated in USD are converted into BDT applying the exchange rate set out by the Bangladesh Bank on the date of the transaction. Account balances denominated in BDT are converted into USD applying the exchange rate set out by the Bangladesh Bank at the reporting date. As of 30 June 2022, the exchange rate is BDT 93.451USD Md. Imrul Hasan Becky Christopher Rozaro AVP & .Unt Head. Financial Infrastructur Finance couns Reporting, Contrl & Taxation Ca te (DelOPMent infrastructure Development Company Limited (IDCOL) 3 Taxation According to the Loan/Grant Agreement, the loan and grant amounts should not be used to pay any taxes and duties. 4 Fixed Assets Any fixed assets purchased from Technical Assistance (TA) fund allocated under the project are recorded as expenditure under goods category. These goods are recorded separately as fixed assets in IDCOL's books of accounts. Due to the cash basis of accounting, the fixed assets procured under the Project are measured on the basis of cost of procurement and reflected in the special purpose financial statement as expenditures instead of capitalization in balance sheet. The record of fixed assets is maintained in inventory sheets. Considering non-commercial status of the Project and cash basis of accounting, depreciation for the fixed assets is not accrued under the project FS. However, depreciation are accrued and recorded in IDCOL's books of accounts. 5 Cash and bank balances / Cash and cash equivalents The project has two CONTASA operating accounts maintained with Janata Bank Ltd. Local Office, Dhaka Branch. Details of the balances under the accounts are as follows: Opening OpeningClosing balance as balance as at For the year at 30lJne 22 30 June, 2021 ended 30 (inceptine t02 (inception to 30 June 2022 Jne2022) June 2021) June 2022) Irnprest account Operating account (RPA) -2248 19,693,191 53,673,594 53,673,594 Operating account (RPA) -2256 190,926 190,136 190,136 Operating account (GOB) Total 19,884,117 53,863,731 .53,863,731 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: Not applicable. Loan Receipt. (in taka) Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) Disbursement by GOB - Less: Refund to GOB - Total Becky Christopher Rozaio Md. Imrul Hasan Senior Officer, Vinance & Accouns AVP & Unit Iead, Financial Infrastructure Development Reporting. Control & Taxation Company Limited (IDcOL) Infrastructure Development Cnmnany i.imited (IDCOL) 7.1 Loan received from Development Partner VVorld Bank has provided funds to the Project to cover its share of eligible project expenditure. These funds, which must be repaid to World Bank after the conclusion of the Project, have been drawn by the Project in accordance with the following withdrawal procedures: Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) SOE Procedures 7,186,937,546 - 7,186,937,546 Direct payments 1,473,127,943 _ 1,473,127,943 rnprest account replenishments ________ -_______ _________ others (Initial Advance & Reimbursement) 700,000,000 70,312,518 770,312,518 Total 9,360,065,489 70,312,518 9,430,378,007 7.2 Grant received from Development Partners Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) SOE Procedures 904,383,919 - 904,383,919 Direct payments _______ _______ _________ Imprest account replenishments - - Others (initial Advance & Reimbursement) 136,937,688 - 136,937,688 Total 1,041,321,608 - 1,041,321,608 8 Funding from other resources Other resources consist of the following Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) Project revenues - Bank Interest - A to E-2248 48,774,612 1,078,066 49,852,678 Bank Interest - HE-2256 7,590,496 5,499.69 7,595,996 Exchange gain and loss - - Less: TDS on interest and other fees 54,523,420 2,207,334 56,730,754 Total 1,841,688 (1,123,769) 717,919 S hrispheRozaio Md. Imrul asan Senior Officer, Finance & Accounts AW Irnt He a aa infrastructure Development oUnit oad. Fnaxalt Company Limited (tDOOL) r Control & TaDUeOn Inyts,cuctur DeveloPiment compa,ny Limited (IDCOL) 9 Expenses from Government fund In BDT Actual Budget Difference For the year C iv as For the year Cumulative as For the year Cumuiative as ended 30 June ended 30 June ended 30 June ended 20 Juneon 30 June 2022 20 on 30 June 2022 20 on 30 June 2022 2022 2022 2022 Category 1: Sub-loans to POs for installing SHS in the rural areas of Bangladesh Category 1: Sub-loans to POs for installing RAPSS in the rural areas of Bangladesh Category 2: Goods, consultants' services - - - - - - Category 3: Sub-grants-biogas - Category 3: Sub-grants-ICS - Category 3: Goods, consultants' services - - - Total Project expenses - - - - 10 Expenses from Development partners In BDT Actual Budget Difference For the year C iv as For the year Cumulative as For the year Cumulative as ended 30 June ended 30 June ended 30 June 2d0 J on 30 June 2022 on 30 June 2022 on 30 June 2022 2022 2022 2022 Category 1: Sub-loans to POs for installing SHS in the - 7,993,068,535 - 7,993,068,535 - - rural areas of Bangladesh Category 1: Sub-loans to POs for installing RAPSS in the 35,209,136 1,150,358,435 35,209,136 1,150,358,435 - rural areas of Bangladesh Category 2: Goods, consultants' services - 381,663,975 - 381,663,975 - Category 3: Sub-grants-biogas - 22,694,000 - 22,694,000 - Category 3: Sub-grants-ICS - 599,450,266 - 599,450,266 - Category 3: Goods, consultants' services - 271,318,593 - 271,318,593 - Total Project expenses 35,209,136 10,418,553,804 35,209,136 10,418,553,804 - Becky Christopher Rozaro MIvd, IMuI Hasan Senior Officer, Finance & Accounts AVP & Unit Head Fa Infrastructure Development - Company Limited (IDCOL) :eporting, Control &Ta3tiOn Infrastructure Developmnt Company Limited (iDCOL) I Re conciliation of expenses by funding methods Nature of expense claim Category i Category 2 Category 3 Amount Amount Difference received Claimed )E- ect payments prest account .hers 70,312,518 - 70,312,518 70,312,518 )tal expenses claimed 70,312,518 - - 70,312,518 70,312,518 emorandurn record - id Expenses claimed by 20,539,975 )cumentation ass: unclaimed expenses at 55,643357 - revious year-end otal ependiture 35,209,136 - 0,2 Summary of Withdrawal Applications (SOE) Amount Amount SOF No, Date Category I Category 2 Category 3 received Claimed Difference Total 10.3 Summary of Withdrawal Applications (Imprest Account Replenishment) Amount Amount No. Date Category I Category 2 Category 3 recive Amed Difference received Claimed Total - - - - - 10.4 Summary of Withdrawal Applications (Direct Payment) Amount Amount No. Date Category 1 Category 2 Category 3 Amount amn Difference ___________ ~~received Claimed _______ Total - - - 10.5 Summary of Withdrawal Applications (Non SOE- Advance) Amount Amount No. Date Category I Category 2 Category 3 recive Amed Difference received Claimed IDCOL-RE-028 17-Nov-21 70,312,518 70,312,518 70,312,518 Total 70,312,518 - - 70,312,518 70,312,518 - Becky Christopher Rozario 19d.IrIt tasan 8olr 01ficer, Finance & AccounJs AVP & Unit Head, FinancIal Infrnqtrjrluro D ovelopmenl Reportitng, Control & raxtion II Expenses from other resources In BDT Actual Budget Difference For the year Cumulative For the year For the year Cumulative ended 30 June as ended 30J Cmlaiea ended 30 June as on 30 2022 on3OJne202 June 2022 o 2022 June 2022 Consultant fee _____-____-___-____-_ -______ Operating cost - - - Others - - - - Total Project expenses - - - Note: According to IPSAs 1.7.8 (c) an explanation is required about the material difference between the budget and actual amount. 12 Project implementation As of 30 June 2022, overall 90% of Grant/Loan has been implemented in the framework of the IDA-5158. The project expenses by categories are presented in the tables below: Budgeted Project Expenses as Budget as of expenses as Total implementation Of 30 June 2022 30 June 2022 in of 30 June Project Budget as of 30 June in BDT BDT 2022 (in in BDT 2022 percentage) (in percentage) Category 1: Sub-loans to POs for installing SHS in the 7,993,068,535 7,993,068,535 79% rural areas of Bangladesh 88% 10,110,110,188 Category 1: Sub-loans to POs for installing RAPSS in 1,150,358,435 1,150,358,435 11% the rural areas of Bangladesh Category2: Goods, consultants' services 381,663,975 381,663,975 4% 421,885,983 90% Category 3: Sub-grants-biogas 22,694,000 22,694,000 0% 2% Category 3: Sub-grants-lCS 599,450,266 599,450,266 6% 992,648,084 60% Category 3: Goods, consultants' services 271,318,593 271,318,593 3% 27% Total Project expenses 10,418,553,804 10,418,553,804 100% 11,524,644,255 90% Becky Christopher Rozario _Md. Imral Hasan Senior Olficr, Financer& A ounts AVP &Unit Head Plancial Infrastructure Dae lopmc nt. Reporting Control & Taxation Company Umiud (DCOl.) Infrastructure Development Company Limited (IDCOLI Project financial statements As of and for the years ended 30 June 2022 Addititional financing for REREDP-II funded by The World Bank Credit No. lDA-5514 / IDA-5514 Grant/Loan Opening balance For the year Closing balance as as on 1 July 2021 ended on 30 June 2022 ReSOUrces (cumulative prior 30 June 2022 (cumulative period) (current period) current period Government of Bangladesh 6 - Loan from development partner 7.1 5,126,877,984 48,307,833 5,175,185,817 Grant from development partner 7.2 231,525,400 39,102,177 270,627,577 Other resources 8 2,278,148 (1,891,876) 386,272 Cash opening balance 5 - 176,691,286 - Total resources 5,360,681,532 262,209,420 5,446,199,666 Expenditure and Cash 1T Sub-Loans to POs for installing SHS in 4,814,804,285 - 4,814,804,285 the rural areas of Bangladesh (Cat-1)4818025- 4848425 2. Sub-Loans to POs for installing RAPSS in99,784,363 the rural areas of Bangladesh (Cat-1) 3.Goods, Consultants' Services (Cat-2) 369,185,961 19,606,125 388,792,086 4, Sub-Grants to POs (Cat-3) - 37,000,000 37,000,000 Total Expenditure 5,183,990,246 156,390,488 5,340,380,734 Closing Balance imprest account Operating account (RPA) 176,691,286 105,818,932 105,818,932 Operating account (GOB) - Total Expenditure & Cash 5 5,360,681,532 262,209,420 5,446,199,666 The annexed notes I to 12 form an integral part of these special purpose financial statements. ~Y nlEstrcar oovalopmn a d. Ilmoull liasan Company LimtdO AVP&Unit Head,Financal Reportlng, Cctrol & Taxcation tnI (raStructuet Development Company Limited (tDCOL) ~v 0~l~~ Statement of the Pro)ect sources and uses of funds of Additional Financing for Rural Electrification and Renewable Energy Development (RERED 11) Project funded IDA under Loan no IDA-5514 As of and for the year ended 30 June 2022 In BDT Actual Budget Difference For the year C For the year Cumulative as For the year Cumulative as Notes ended 30 June Cumu0atue as ended 30 on 30 June ended 30 June __________________________ 222 on 30 June2Q2Jn20202 2022 on 30 June 2022 2022 June 2022 2022 2022 Cash and bank balances as-at I July 2021 5 176,691,286 - 176,691,286 - - Add: Funding from Government of Bangladesh 6 - - - - Loan from Development Partner 7.1 48,307,833 5,175,185,817 48,307,833 5,175,185,817 - - Grant from Development Partner 7.2 39,102,177 270,627,577 39,102,177 270,627,577 - Funding from other sources 8 (1,891,876) 386,272 - - (1,891,876) 386,272 Total financing 262,209,420 5,446,199,666 264,101,296 5,445,813,394 (1,891,876) 386,272 Exchange differences - - Other income i __ _ - - Total resources (financing and other receipts) 262,209,420 5,446,199,666 264,101,296 5,445,813,394 (1,891,876) 386,272 Less: Expenses from Government of Bangladesh 9 - - Expenses from Development Partner 10 156,390,488 5,340,380,734 156,390,488 5,340,380,734 - Expense from other sources 11 - - Total Project expenses 156,390,488 5,340,380,734 156,390,488 5,340,380,734 - - Exchange rate differences - - Other expenses - I - - - - - Total Project expenses and other expenses 156,390,488 5,340,380,734 156,390,488 5,340,380,734 - - Cash and bank balances as at 30 June 2022 - 5 105,818,932 105,818,932 107,710,808 105,432,660 (1,891,876) 386,272 The annexed notes I to 12 form an integral part of these special purpose financial statements. Becky Chrristopher Rozario Senior Officer, Finance & Accounts nrastructure Devela COMPany Limited (JDCOL) AVP & 'Unit Head, Financial Reportln& Control & Taxation Infrastrticture Development Company lirnited (IDCOL) Statement of uses of funds by Project activity and comparison to budget As of and for the years ended 30 June 2022 GrAnt5oa Actual Budget For the year Cumulative of 30 For the year ended Cumulative of 30 ended 30 June 2022 June 2022 30 June 2022 June 2022 Category 1: Sub-Loans to POs for installing SHS in 4814804285 - 4,814804,285 the rural areas of Bangladesh 4 1,0.8- ,1,0,8 Category 1: Sub-Loans to POs for installing RAPSS 99781383 99,784,363 99,784,363 99,784,363 in the rural areas of Bangladesh997433 978,699846397433 category 2: Goods, Consultants' Services 19,606,125 388,792,086 19,606,125 388,792,086 Category 3: Sub-Grants 37,000,000 37,000,000 37,000,000 37,000,000 Total 156,390,488 ,340,380,734 16,390,488 5,340,380,734 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. Becky( Christopher RosnOafri Eaa fmnO& Act;OMS V l 1rrwilIIs Senior Oiit v FV met AVP &PUlt Head, FinancIal tastrucr DCOL) Reporting, Control & T,xa in company Infrastruc(Ure D0velopmnI Company Limited (iDCO) Statement on cash flow on operating account #0100018134882 As of and for the years ended 30 June 2022 Balance as of 1 July 2021 176,691,286 Add: Receipt from Government 8,1,1 Receipt from Development Partner 87410,010 Bank interest Exchange rate difference Total Less:153948 Amount of eligible expenses 3 5639048 Bank charges, AIT and transfer to BB 3,713,521 Exchange rate difference Total 160,104,008 Balance as of 30 June 2022 ----8-8,932- The annexed notes I to 12 form an integral part of these special purpose financial statements. tle jza6\o fMd. Ium! IHaDna rkt e Anance a eoayAVP & Unit Head, Financial Scw Ocaopel V"n Notes to the financial statements 1 General information IDCOL channels grants and provides soft loans for the development of rural infrastructure i.e. renewable energy. Since 2002, IDCOL is implementing renewable energy development projects. A Financing Agreement was excuted between International Development Association (IDA) and Government of Bangladesh (GoB) on 30 June 2014 under Additional REREDP 11 (IDA Credit No. 5514-BD). IDCOL, on the other hand, entered into a Subsidiary Loan Agreement and a Subsidiary Grant Agreement with GoB on 15 September 2014 where GoB made USD 73.7 million available to IDCOL (as Sub-loan) for financing Solar Home Systems (SHSs) and another 4.7 million for supporting IDCOL for payment of costs associated with procurment of goods, consultants' services, training etc. in connection with the implementation of the project. The closing date of the project is 18 December 2023, 2 Significant accounting policies Basis of preparation The financial statements of the Project have been prepared in accordance with IPSAS Financial Reporting Under the Cash Basis of Accounting, and comply with the Project Account Manual issued by the Finance Division, Ministry of Finance, Government of Bangladesh and the covenants of IDA-5514 loans and grants agreements. These special purpose financial statements reflect the data for the year ended 30 June 2022. Under the basis of accounting, financing is recognized when received rather than when earned and expenses are recognized when paid rather than when incurred. Expenses are resources directed for the payment of works, goods and services, recognized in the financial statements in the period when they are paid. Financing According to the disbursement guidelines, World Bank may advance funds into the designated account of the borrowers known as initial advance, Besides, World bank may make payments at the borrower's request to the third party known as direct payment. Another way is World Bank may reimburse to the borrower for eligible expenditures that the borrowers has prefinanced from its own sources known as Non SoEl reimbursement procedure. Finally, initial advance disbursed to the designated account may be replenished based on the actual expenditures as requested by borrowers known as SoEl replenishment procedure. Expenses Consistent with the cash basis of accounting, the Project expenses are recognized and included in the special purpose financial statements when the payment is actually made or the loan is disbursed. Functional and presentation currency BDT is the national currency of the Government of Bangladesh. The special purpose financial statements of the Project are presented in BDT/USD (presentation currency) and rounded to the nearest integer of BDT/USD. Income and expenses denominated in BDT are converted into USD applying the exchange rate set out by the Bangladesh Bank on the date of the transaction. Account balances denominated in BDT are converted into USD applying the exchange rate set out by the Bangladesh Bank at the reporting date. As of 30 June 2022, the exchange rate is BDT 93.45/USD Backy Christopher Rozaft rad. Imrrai asan Suior OIci, Anance &AAccon\A & Unit vead iniand himotructure Development gportlng, ontrol & Taxatlon Compn1Y tned gOCOL) 1Infrastructure DevelPment. Comupay imtted (IDCOt) 3 Taxation According to the Loan/Grant Agreement, the loan and grant amounts should not be used to pay any taxes and duties. 4 Fixed Assets Any fixed assets purchased from Technical Assistance (TA) fund allocated under the project are recorded as expenditure under goods category. These goods are recorded separately as fixed assets in IDCOL's books of accounts. Due to the cash basis of accounting, the fixed assets procured under the Project are measured on the basis of cost of procurement and reflected in the special purpose financial statement as expenditures instead of capitalization in balance sheet. The record of fixed assets is maintained in inventory sheets, Considering non-commercial status of the Project and cash basis of accounting, depreciation for the fixed assets is not accrued under the project FS. However, depreciation are accrued and recorded in IDCOL's books of accounts, 5 Cash and bank balances I Cash and cash equivalents The project has a CONTASA operating accounts maintained with Janata Bank Limited, Ramna Corporate Branch. Details of the balances under the accounts are as follows: Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 June 2022 Jne2022) June 2021) June 2022) ImJrest account2 Oeratin account (RPA 176,691,286 105,818,932 105,818,932 Total 176,691,286 105,818,932 105,818,932 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: Not applicable for this project. Loan Recei t (in taka) Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) Disbursement by GOB June 2021 - ) Less: Refund to GOB - Tta Y Ch Vol t Feio O f inr,Vance & Accountst Cuoxlxat Ion'rasiructure DevelOPMen aC ~0npfl LmiedPlCOL) pL' 7.1 Loan received from Development Partner World Bank has provided funds to the Project to cover its share of eligible project expenditure. These funds, which must be repaid to World Bank after the conclusion of the Project, have been drawn by the Project in accordance with the following withdrawal procedures: Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 Ju 2 (inception to 30 (inception to 30 June 2022 (ine2022) June 2021) 1 1 SOE Procedures 4,126,070,241 48,307,833 4,174,378,074 Direct payments 500,807,743 - 500,807,743 Imrest account replenishments - Others (Initial advance 500,000,000 - ,000 Total 5,126,877,984 48,307,833 5,175,186,817 7.2 Grant received from Development Partners Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2021) June 2022) SOE Procedures 134,740,743 39,102,177 173,842,920 Direct payments - - - - Imprest account replenishments - Others (Reimbursement) 96,784,657 - 96,784,657 Total 231,525,400 39,102,177 270,627,577 8 Funding from other resources Other resources consist of the fo"lowing O Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) Project revenues - - - Bank Interest 30,694,145 1,821,645 32,515,790 Exchange gain and loss - - Less: TDS on interest and other fees 28,415,997 3,713,521 32,129,518 Total 2,278,148 (1,891,876) 386,272 lct'a 0'all 9 Expenses from Government fund In BDT Actual Budget Difference For the year For the year Cumulative as For the yea .r ened30JueCumulative as edd3 on0Jue ned0JneCumulative as 2ne 02un on 30 June 2022 edd3 n3 June 2022d 202 2022 on 30 June 2022 Category 1:Sub-Loans to POs for installing SHS in the rural areas of Bangladesh Category 1: Sub-Loans to POs for installing RAPSS in the rural areas of Bangladesh Category 2: Goods, Consultants' Services Category 3: Sub-Grants - - Total Project expenses 10 Expenses from Development partners In BDT Actual Budget Difference For the year For the year Cumulative as For the year ended 30 June Cumulative as ended 30 on 30 June ended 30 June 2022 on 30 June2022 June 2022 2022 2022 on 30 June 2022 Category 1: Sub-Loans to POs for installing SHS in the - 4,814,804,285 - 4,814,804,285 - rural areas of Bangladesh Category 1: Sub-Loans to POs for installing RAPSS in the 99,784,363 99,784,363 99,784,363 99,784,363 rural areas of Bangladesh Category 2: Goods, Consultants' Services 19,606,125 388,792,086 19,606,125 388,792,086 - Category 3: Sub-Grants 37,000,000. 37,000,000 37,000,000 37,000,000 - Total Project expenses 156,390,488 . 5,340,380,734 156,390,488 5,340,380,734 ?Becky Christopher Rozarb Md. fIrlD Hasan Senior Officer, Financo & Accouatc AVP & Unit Head, Financial nfrastructure DevelopmOnt Reportin, Control & Taxation Company Limited (IDCOL) Infrastructure Development Company Limited (IDCOL) 10.1 Reconciliation of expenses by funding methods Amount Amount Nature of expense claim Category 1 Category 2 Category 3 rmoivt Ame Difference received Claimed SOE 48,307,833 2,102,177 37,000,000 87,410,010 87,410,010 - Direct payments - - - -- Imprest account Others - - - W Total expenses claimed 48,307,833 2,102,177 37,000,000 87,410,010 87,410,010 Memnorandumr record - Add: Expenses not cvlaimed at year-end - 654D545 - Add: Expenses claimed in the form of 514630 6.9,3 documentation Less: Claimed expenses related to previous year-end Total pend e99,784,363 19,606,125 37,000,000 10.2 Summary of Withdrawal Applications (SOE) Amount Amount SOE No. Date Category I Category 2 Category 3 recive Amed Difference received Claimed I DCOL AF-1 9 26-May-22 48,307,833 2,102,177 37,000,000 87,410,010 87,410,010 Total 48307,833 _2,102,177 37,000,000 87,410,010 87,410,010 - 10.3 Summary of Withdrawal Applications (Imprest Account Replenishment) No. Date Category 1 Category 2 Category 3 Amut Aon DifferencE received Claimed pTotal 10.4 Summary of Withdrawal ApplicationS (Direct Payment) N o. Date Category 1 Category 2 Cat egory 3 Aon Amut Differenc received Claimed Total 11 Expenses from other resources In (currency) Actual Budget Difference For the year Cumulative as For the year C as For the year Cumulative ended 30 June on 30 June ended 30 ended 30 June as on 30 2022 2022 June 2022 2022 June 2022 Consultant fee - - - - - Operating cost - - - - Others - - - - - Total Project expenses - - - - - Note: According to IPSAs 1.7.8 (c) an explanation is required about the material difference between the budget and actual amount. 12 Project implementation As of 30 June 2022, overall 85% of Grant/Loan has been implemented in the framework of the IDA-5514 agreement. The project expenses by categories are presented in the tables below: Budgeted Project Expenses as Budget as of expenses as Total implementation Of 30 June 2022 30 June 2022 in of 30 June Project Budget as of 30 June in BDT BDT 2022 (in in BDT 2022 percentage) (in percentage) Category 1: Sub-Loans to POs for installing SHS in the 4,814,804,285 4,814,804,285 rural areas of Bangladesh 92% 5,649,598,748 87% Category 1: Sub-Loans to POs for installing RAPSS in 99,784,363 99,784,363 the rural areas of Bangladesh Category 2: Goods, Consultants' Services 388,792,086 388,792,086 7% 587,843,466 66% Gategoa 3: Sub-Grants 37,000,000 37,000,000 1% 39,197,191 94% Total Project expenses 5,340,380,734 5,340,380,734 100% 6,276,639,405 85% Becky Christopher Rozaric AVPd& Ilmra Hasan Senior Otfier, Finance & Accounts AVP &.Unit Head Fncial infrastruture Development Ruporting, Control & TaxatIon Cnnanv L HmOed flDCOL) Infriscruure Development Project financial statements (GOB Approved Model) As of and for the years ended 30 June 2022 Global Clean Cooking Program under Additional Financing It for REREDP 11 Grant No. GCF- TFOB4774 Opening balance For the year Closing balance as on Resources Notes as on 1 July 2021 ended 30 June 2022 (cumulative prior 30 June 2022 (cumulative current period) (curreterod) period) Government of Bangladesh 6 - Grant from development partner 7 - 115,000,000 115,000,000 other resources 8 - 269,032 269,032 Cash opening balance 5 - Total resources - 116,269,032 115,269,032 Ex h Expenditure and Cash ___________________ 1.Goods, consultants' services (Cat-1): ICS - - 2. Sub-grants-ICS (Cat-2) - 112,602!459 112,602,459 - 112,602,459 112,602,459 Tot;al Expenditure - 112,602,459 112,602,459. Closing Balance imnprest _account. operating account (RPA) 2,666,573 2,966r;573 Operating account (GOB) - / Total Expenditure & Cash 5 - 115,269,032 115,269,032 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. Becky Christopher Rozakt Md. umrul Hasan Sens OtVIr, ipace &Aoumes AVP & Unit H-ead Financial 1nprasLructure Dv elopC) Reportin, Control & Tazatio COmpany Limil9d V) ) Infrastructure Devvlopment Company Limited (IDCOL) os-o W,~%s Statement of the Project sources and uses of funds Global Clean Cooking Program under Additional Financing 11 for Rural Electrification and Renewable Energy Development Project II Grant No. TFOB4774 As of and for the year ended 30 June 2022 In BDT Actual Budget Difference For the year For the year Cumulative For the year C Notes ended 30 June Cumulatie as ended 30 as on 30 June ended 30 June Cumulatie as 2022 June 2022 2022 2022 Cash and bank balances as at 1 July 2021 5 - - - - - Add: Funding from Government of Bangladesh 6 - - - - Grant from Development Partner 7 115,000,000 115,000,000 115,000,000 115,000,000 - Funding from other sources 8 269,032 269,032 - - 269,032 269,032 Total financing 115,269,032 115,269,032 115,000,000 115,000,000 269,032 269,032 Exchange differences - Other income - - - - Total resources (financing and other receipts) 115,269,032 115,269,032 115,000,000 115,000,000 269,032 269,032 Less: Expenses.from Government of Bangladesh 9 - - - - Expenses from Development Partner 10 112,602,459 112,602,459 112,602,459 112,602,459 - Expense from other sources 11 - - - - Total Project expenses 112,602,459 112,602,459 112,602,459 112,602,459 Exchange rate differences Other expenses L - - Total Project expenses and other expenses 112,602,459 112,602,459 112,602,459 112,602,459 Cash and bank balances as at 30 June 2022 5 2,666,573 2,6667573 2,397,541 2,397,541 269,032 269,032 The annexed notes 1 to 12 form an integral part of these special purpose financial statements. Md. YrmrullTJaa Becky Christopher Rozalo AVI & If Head, F, Senior Officer, Finance &Accounts Pepartin& Coa-w & T= Infrastructure Development nrastruc Deftopment Company Limited (lDCOL) Company btElflID'COL1 Statement of uses of funds by Project activity and comparison to budget As of and for the years ended 30 June 2022 GC-TFOB4774 Actual Budgeted Grant For the year Cumulative of 30 For the year Cumulative of 30 ended 30 June June2022 ended 30 June June 2022 2022 2022 Cate o I:Goods, consultants' services for ICS - Cate or 2: Sub-grants for ICS 112,602,459 112,602,459 112,602,459 112,602,459, [T iia 1112,602,459 112,602,459 112,602,459 112,602,459 Total The annexed notes 1 to 12 form an integral part of these special purpose financial statements. Md. Irnrul Hasan AVP & Unit Iiead, Finlandal Reporting.Conrul & Faxilon Infrastructure Developmc±nt no Want Company LIIted (IUCOL) InMPtrauctuLo ICpOL) Company iie IGL Statement on cash flow on operating account #0100226810247 As of and for the years ended 30 June 2022 Balance as of 1 July 2021 Add: Receipt from Government Receipt from Development Partner 115,000,000 Bank interest 317,185 Exchange rate difference Total 115,317,185 Less:1 Amount of eligible expenses 112602459 Bank charges, AIT and transfer to BB 48,153 Exchange rate difference - Total 112,650,612 Balance as of 30 June 2022 2,666,573 The annexed notes I to 12 form an integral part of these special purpose financial statements. *mnL Gi unit Vga 3 Notes to the financial statements 1 General information Infrastructure Development Company Ltd. (IDCOL) patronizes energy efficient clean cooking arrangement through channeling grant fund from International Development Partners to domestic Partner Organizations for installation of improved Cook Stoves (ICS). Since the launch of the ICS program in 2013, IDCOL has provided institutional grant and technical assistance to install 2.09 million ICSs till December 2020. A Financing Agreement was executed between International Development Association (IDA) and Government of Bangladesh (GoB) on 31 May 2021 under Global Clean Cooking Program under the Additional Financing 11 for REREDP II Project (GCF TF- 0B4774). IDCOL, on the other hand, entered into a Subsidiary Grant Agreement with Government of Bangladesh (GoB) on 23 June 2021 where GoB made USD 20 million available to IDCOL for disbursement of sub-grant to install ICS and payment of costs associated with procurement of goods, consultants' services, training etc. in connection with the implementation of the project. The closing date of the project is 18 December 2023. 2 Significant accounting policies Basis of preparation The financial statements of the Project have been prepared in accordance with IPSAS Financial Reporting Under the Cash Basis of Accounting, and comply with the Project Account Manual issued by the Finance Division, Ministry of Finance, Government of Bangladesh as well as (development partners. requirements) and the covenants of the loans and grants. These special purpose financial statements reflect the data for the year ended 30 June 2022, Under the basis of accounting, financing is recognized when received rather than when earned and expenses are recognized when paid rather than when incurred. Expenses are resources directed for the payment of works, goods and services, recognized in the financial statements in the period when they are paid. Financing According to the disbursement guidelines, World Bank may advance funds into the designated account of the borrower (IDCOL) known as initial advance. Besides, World bank may make payments at the borrower's request to the third party known as direct payment. Another way is World Bank may reimburse to the borrower for eligible expenditures that the borrower has prefinanced from its own sources known as Non SoE/ reimbursement procedure. Finally, initial advance disbursed to the designated account may be replenished based on the actual expenditures as requested by borrower known as SoEl replenishment procedure. Expenses Consistent with the cash basis of accounting, the Project expenses are recognized and included in the special purpose financial statements when the payment is actually made or the loan is disbursed. Functional and presentation currency BDT is the national currency of the Government of Bangladesh. The special purpose financial statements of the Project are presented in BDT (presentation currency) and rounded to the nearest integer of BDT. Income and expenses denominated in USD are converted into BDT applying the exchange rate set out by the Bangladesh Bank on the date of the transaction. Account balances denominated in BDT are converted into USD applying the exchange rate set out by the Bangladesh Bank at the reporting date. As of 30 June 2022, the exchange rate is BDT 93.45/USD 3 Taxation According to the Loan/Grant Agreement, the loan and grant amounts should not be used to pay any taxes and duties. AVP & Unit "tanca Becky Chrislopher Rozario Reprtlng, Control & 'axt,011 Senior Officer Finance & AccounIs infrnstfucture Development 4 Fixed Assets Any fixed assets purchased from Technical Assistance (TA) fund allocated under the project are recorded as expenditure under goods category. These goods are recorded separately as fixed assets in IDCOL's books of accounts. Due to the cash basis of accounting, the fixed assets procured under the Project are measured on the basis of cost of procurement and reflected in the special purpose financial statement as expenditures instead of capitalization in balance sheet. Considering non-commercial status of the Project and cash basis of accounting, depreciation for the fixed assets is not accrued under the project FS, However, depreciation are accrued and recorded in IDCOL's books of accounts. 5 Cash and bank balances / Cash and cash equivalents The project has two CONTASA operating accounts maintained with Janata Bank Ltd., Sher-E- Bangla Nagar, Dhaka. Details are as follows: Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) Imprest account - Operating account (RPA) -10247 - 2,666,573 2,666,573 Operating account (GOB) - - Total - 2,666,573 2,666,573 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: Not applicable under the project Loan Receipt. (in taka) Opening OpeningClosing balance as balance as at For the year at 30lJne 22 30 June, 2021 ended 30 (inception to23 (inception to 30 June 2022 Jne2022) June 2021) Disbursement by GOB - - Less: Refund to GOB - Total - - 7 Grant received from Development Partners Opening Closing balance as balance as at For the year at 30 June 2022 30 June, 2021 ended 30 (inception to 30 (inception to 30 June 2022 June 2022) June 2021) SOE Procedures - - - Direct payments - Imprest account replenishments - Others (Initial Advance) 115,000,000 115,000,000 Total - 115,000,000 115,000,000 Becky Christopher Rozario I Hasan *y S enior Officer, Finance & Accounts AVP & Unit fead, Financial I frastructure Development Reporting Control & Taxation Company Limited (IDcOL) lnfragtcruN Develonment 8 Funding from other resources Other resources consist of the following Opening balance as at For the year at 30 lJne 22 30 June, 2021 ended 30 (inceptine t02 (inception to 30 June 2022 Jne2022) June 2021) Bank Interest-10247 317,185 317,185 Exchange gain and loss - Less: TDS on interest and other fees - 48,153 48,153 Total - 269,032 269,032 Md. 1mruil Hasan Becky Christopher RoWaIQ AVP & Unit Head, Financial Senior O1ficer, Finance & AccountS Reportin Control & Taxation infrastructure Developmnt Infrastructure Development Company Limited (1DCOL) Company Limited (IDCOL) 9 Expenses from Government fund In BDT Actual Budget Difference For the year For the year Cumulative For the year Cumulative as ended 30 June Cumulatie as ended 30 June as on 30 ended 30 June 2022 2022 June 2022 2022 Category 1:Goods, consultants' services for ICS - - Category 2: Sub-grants for ICS - Total Project expenses 10 Expenses from Development partners In BDT Actual Budget Difference For the year For the year Cumulative For the year ended 30 June Cumulatie as ended 30 June as on 30 ended 30 June Cumulatie as 2022 on 30OJune 2022 202Jn22 02 on 30 June 2022 2022 2022 June 2022 2022 Category 1:Goods, consultants' services for ICS - - - - - Category 2: Sub-grants for ICS 112,602,459 112,602,459 112,602,459 112,602,459 - Total Project expenses 112,602,459 112,602,459 112,602,459 112,602,459 - Md. lmrull Hasan Becky Christopher Rozario AVP & Unit Head. Financial Senior OffMcer, Finance & Accounts Reporting Control & Taxation Infrastructure Development Infrastructure Development Company Limited (IDCOL) comtiy dtmited (1900) 10: Reconciliation of expenses by funding methods Nature of expense claim Category I Category 2 Amount received Amount Claimed Difference SOE - - Direct payments - . Imprest account Others - - Total expenses claimed - Memorandum record Add: Expenses not claimed at :yeaen d- 112,602,459 Year-end Less: Unclaimed expenses at previous year-end Total expenditure - 112,602,459 10.2 Summary of Withdrawal Applications (SOE) SOE No. Date Category I Category 2 Amount received Amount Claimed Difference Total 10.3 summary of Withdrawal Applications (Imprest Account Replenishment) No. Date Category 1 Category 2 Amount received Amount Claimed Difference Total 10.4 Summary of Withdrawal Applications (Direct Payment) No. Date Category 1 Category 2 Amount received Amount Claimed Difference Total 10.5 Summary of Withdrawal Applications (Others- Initial Advance) No. Date Category 1 Category 2 Amount received Amount Claimed Difference IDCOL GCF 001 28-Dec-21 - 115,000,000 115,000,000 115,000,000 Total _____ - 115,000,000 115,000,000 115,000,000- Md. lmrul Hasan AVP &Unit Head, Financial BecY Christophro eozarn Rpartig, control & Taatlpn SQnIDo 01kw, FiRanco &Accounts %lfrnst ctuNa Development In(IfasIcuctfuoOWPmOnlt :,.,i~r,c4 tinfOottrpAttyLnw Mmum aL 11 Expenses from other resources in BDT Actual Budget Difference For the year Cumulative For the year Cumulative as For the year Cumulative ended 30 June as on 30 June ended 30 on 30 June ended 30 June as on 30 2022 2022 June2022 2022 2022 June2022 Consultant fee - - Operating cost - Others - Total Project expenses Note: According to IPSAs 1.7.8 (c) an explanation is required about the material difference between the budget and actual amount. 12 Project implementation As of 30 June 2022, overall 7% of Grant has been implemented in the framework of the Grant Agreement no. GCF-TFOB4774. The project expenses by categories are presented in the tables below: Budgeted Project Expenses as Budget as of expenses as Total implementation Of 30 June 2022 30 June 2022 of 30 June Project Budget as of 30 June in BDT in BDT 2022 (in in BDT 2022 percentage) (in percentage) Category 1:Goods, consultants' services for ICS - - 0% 186,900,000 0% Category 2: Sub-grants for ICS 112,602,459 112,602,459 100% 1,682,100,000 7% Total Project expenses i112,602,459 112,602,459 100% 1,869,000,000 7% ek Phr ROZ@rlo Md. Inrul Hasan S5ilior Officer, Ffan cer a r zunAVP & .Unit Head, Financial Infrastructr, Dnce &Accounts Reporting, Control & Taxaicn COMpany Limil ;cO Infrasructure Development )Company Limited (DCOL) This part for Grant based project/Special Account Auditor's Report on Special Account We have audited the accompanying Special Account statements of the Rural Electrification and Renewable Energy Development Project (REREDP-fl)" IDA credit no-6202, 5158, 5514 & GCF-TFOB4774 for the Year 2021-2022. 1. 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. 2. The accompanying Special Account Statements were prepared on the basis of cash deposits and withdrawals for the purpose of complying of the above grant procedures. 3. In our opinion, the Special Account Statements gives a fair view of the account for the year ended 30"' June, 2022 on the basis of cash deposit and withdrawals. Opinion status: Unqualified. (Tasnim Ferdous) Deputy Director For Director General Foreign Aided Projects Audit Directorate Tel: +8802-226663612 AUDIT OPINION ON IUFR We have audited the Statement of Expenditure (SOE) on the accounts of "Rural Electrification and Renewable Energy Development Project (REREDP-LI)" Project Financed by IDA credit no-6202, 5158, 5514 & GCF-TFOB4774 for the Year 2021-2022. 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 Interim Unaudited Financial Report (IUFR) 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. (Tasnim Ferdous) Deputy Director For Director General Foreign Aided Projects Audit Directorate Tel: +8802-226663612