Government of Nepal Ministry of Energy, Water Resource and Irrigation Alternative Energy Promotion Board Alternative Energy Promotion Centre Scaling-up Renewable Energy Program (TF 016552NP) Audited Project Account FY 2020/021 (Period between 16 July 2020 & 15 July 2021) (Energy, Water Resources an ism Directorate) Reference No. 2078/79- Isg Date: 2079/3/24 (8th July, 2022) To, The Secretary, Ministry of Finance, Singh Durbar, Kathmandu. Subject: Independent Auditor's Report. Opinion We have audited the accompanying project financial statements of "Scaling-up Renewal Energy Program (SREP)", finance under IDA Grant No. TFO 16552 NP, which comprise the project financial statements showing sources and applications of project fund for the year ended 31st Ashadh 2078 (15t' July 2021), including Statement of Designated Account as at 31st Ashadh 2078 (15th July 2021) and a summary of significant accounting policies and notes related to project financial statements. In our opinion, the accompanying project financial statements for the year ended on 31' Ashadh 2078 (15th July 2021) are prepared in all material respects, in accordance with the terms of project financing agreement signed between International Development Association (IDA) and Government of Nepal (GoN). We also report that the fund provided under said agreement have been utilized in intended purpose. Basis for Opinion We conducted our audit in accordance with Nepal Government Auditing Standards (NGASs).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 ethical requirements that are relevant to our audit of the financial statements and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management Letter Management Letter highlighting the areas of improvement for the internal control system and other aspects in this project is enclosed with this report. Responsibilities of Management and Those Charged with Governance for the Project Financial Statements Management of AEPC is responsible for the preparation of the project financial statements in accordance with the financial reporting requirement of financing agreement with the WB and for such internal control as AEPC management determines is necessary to enable the Phone: 4258174, 426604, 4255707, A.G. Fax: 977-1-426809, Fax: 977-1-4262798, Pot Bo email: aag.mgmt@oagnep.gov.nP Web Page: wI - .oagnepg , RM, 1 7,fP 7'F~ -1 preparation of the project financial statements and that are free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the Project's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the project financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a Medium level of assurance, but is not a guarantee that an audit conducted in accordance with Nepal Government Auditing Standard (NGASs) 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 financial statements. As a part of audit in accordance with Nepal Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1. Identify and assess the risk of material misstatement of the financial statement whether due to fraud or error, design and perform audit procedure responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide an opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentation, or the override of internal control. 2. 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 internal control. 3. Evaluate the appropriateness of accounting policies 'used and the reasonableness of accounting estimates and related disclosures made by management. 4. Evaluate the overall presentation, structure, & content of financial statement including the disclosures, and whether the financial statement represent the underlying transactions and events in a manner that achieves fair presentation. 5. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities to express an opinion on the financial statements. We remain solely responsible for our audit opinion. We communicate with those charges with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. eshwar Kaphle) eputy Auditor General Alternative Energy Promotion Board Scaling-up Renewable Energy Program (TF 016552NP) Audited Project Account Contents Report 1 Summary of Sources and Uses of Funds Report 2 Designated Account Reconciliation Statement & Cash Projection Report 3 Statement of Expenditure Report 4 Statement of Expenditure for Withdrawal Application Report 5 Disbursement Note 1 GoN Fund and GoN Reimbursable Fund/ IDA Fund Replenishable Statement Note 2 Reconciliation Statement Audited Project Account Report1 Scaling-up Renewable Energy Program (TF 016552NP) Summary of Sources and Uses of Funds Fiscal Year 2020/21 Period: 16 July 2020 to 15 July 2021 Amount in NPR Notes to Cumulative up to Description Previous Fiscal Current Fiscal Year Cumulative to Date Account Year Budget Allocation (Proposed Budget of FY 020-21) 1,387,230,000.00 210,000,000.00 1,597,230,000.00 A. Opening Casl/Bank Balance B. Sources of Funds 347,147,277.25 42,178,911.24 389,326,188.49 GoN Fund 1 GoN Reimbursable Fund 1 53,095,600.98 (31,088,547.76) 22,907,053.22 IDA Funds Replenishable 1 10,949,563.00 5,091,325.05 16,040,888.05 IDA Funds 282,202,113.27 68,176,133.95 350,378,247.22 Total (A+B) 347,147,277.25 42,178,911.24 389,326,188.49 C. Uses of Funds by Categoryj Component Non consulting,Consultants services & trainin 91,713,029.75 23,566,967.00 115,279,996.75 DFS(Market reseach,BP,EMP etc) 18,025,204.00 3,314,439.40 21,339,643.40 Incremental operating 12,900,878.50 2,797,504.84 15,698,383.34 Reimbursable Part of Subsidy Payment 226,819,036.00 12,500,000.00 239,319,036.00 Less: Refund of Advance Subsidy 2,310,871.00 - 2,310,871.00 Net Reimbursable Part of Subsidy Payment 224,508,165.00 12,500,000.00 237,008,165.00 Total 347,147,277.25 42,178,911.24 389,326,188.49 D. Closing Balance Total (C+D) 347,147,277.25 42,178,911.24 389,326,188.49 Designated Account Statement 1 Opening Balance - 18,947,156.42 2 Fund Received from IDA 142,448,409.60 26,094,890.45 168,543,300.05 3 Total Cash Balance (1+2) 142,448,409.60 45,042,046.87 168,543,300.05 4 Less: Transfer to CoN Treasury Account 125,330,776.50 31,000,000.00 156,330,776.50 5 Less: Direct Payment from Designated Account 394,443.75 - 394,443.75 6 Foreign Exchange Gain/Loss (+/-) 2,223,967.07 (327,679.41) 1,896,287.66 6. Closing Balance (3-4-5+6) 18,947,156.42 13,714,367.46 13,714,367.46 CA Sangam ulal Labanya Raj Dahal Dr. Madhusudhan dhikari Financial Management Expert Chief Account Comptroller Executive Director AEPC AEPC AEPC Ya raad Dhungana Sushil C andra Tiwari Sumanra Aryal Kaphl Under Secretary (Account) Secretary Financial Comptroller General De uty Auditor General MoEWRI MoEWRI Financial Comptroller General Office Ofce of Auditor General Audited Project Account Report 2 Scaling-up Renewable Energy Program (TF 016552NP) Designated Account Reconciliation Statement & Cash Projection Fiscal Year: 2020/21 Period: 16 July 2020 to 15 July 2021 Amount in USD Particulars Cumulative up to FY Reporting FY Cumulative to Date Remarks 2019/020 2020/021 1. Opening Cash Balance 157,407.63 2. Add: Receipt of Funds 1,299,398.48 221,781.89 1,521,180.37 3. Total Cash Balance (1+2) 1,299,398.48 379,189.52 1,521,180.37 4. Less: (a) Transfer to GON Treasury from Designated Account 1,138,313.85 263,981.46 1,402,295.31 (b) Direct Payment from Designated Account 3,677.00 - 3,677.00 5. Closing Designated Account Balance at the end of Reporting Period 157,407.63 115,208.06 115,208.06 (3-4) CA Sangam Dulal Labnya Raj Dahal Dr. Madhusudhan Adhikari Financial Management Expert Chief Account Comptroller Executive Director AEPC AEPC AEPC Audited Project Account Report 3 Scaling-up Renewable Energy Program (TF 016552NP) Statement of Expenditure Fiscal Year. 2020/21 Period: 16 July 2020 to 15 July 2021 Amount In NPR Annual Budget Expenditure Balance Budget Item No. No. Description/ Component Total Project Cost( In "USD") CumulativeEpenditure Allocation(Proposed Cumulative Budget for FY 20-21) Current Fiscal Year % Amount % Expenditure to Date 1 2 3 4 5 6 7 ,(7/o100 (9/6* 100) 11 (5+7) 308001043 7,900,000.00 349,458,148.25 210,000,000.00 42,178,911.24 20.09 167,821,088.76 79.91 391,637,059.49 Non consulting,Consultants services & training(Launch of online web portal,Third party verification,Provision 1 of subsidy for partial financing of w2e) 1,225,000.00 91,713,029.75 29,700,000.00 23,566,967.00 79.35 6,133,033.00 20.65 115,279,996.75 2 DFS(Market reseach,BP,EMP etc) 280,000.00 18,025,204.00 5,000,000.00 3,314,439.40 66.29 1,685,560.60 33.71 21,339,643.40 Incremental operating(consumables,vehicle rental/leasing,equipment maintenance/repairdomestic 170,000.00 12,900,878.50 5,300,000.00 2,797,504.84 52.78 2,502,495.16 47.22 15,698,383.34 travel,communication,bank charges,advertisement) 3 4 Reimbursable Part of Subsidy Payment 6,225,000.00 226,819,036.00 170,000,000.00 12,500,000.00 7.35 157,500,000.00 92.65 239,319,036.00 Grand Total 7 349,458,148.25 210,000,000.00 42,178,911.24 20.09 167,821,088.76 79.91 391,637,059.49 _~r adh dh _ - Kan Adhikari CA Sangam ulal Labanya Rai Dahal Dr. a Financial Management Expert Chief Account Comptroller Executive Director AEPC AEPC AEPC Audited Project Account Report 4 Statement of Expenditure (SoE) for Withdrawal Application Fiscal Year: 2020/21 NPR Withdrawal Application Auth No. Value Date Category Total No. Date 1 2 3 4 Upto Previous year 86,619,032.75 17,234,917.00 10,921,707.50 167,426,456.02 282,202,113.27 TF016552-28 21 -Aug-20 24-Aug-20 5,645,30000 790,287,00 787,255.00 - 7,222,842.00 TF016552-29 26-Feb-21 3-Mar-21 - 3,551,944.00 3,551,944.00 TF016552-30 17-Mar-21 18-Mar-21 9,674,846.00 - - - 9,674,846.00 TF016552-31 15-Apr-21 20-Apr-21 - - 17,641,554.00 17,641,554.00 TF016552-32 15-Apr-21 20-Apr-21 - - - 21,073,961.00 21,073,961.00 TF016552-33 16-Jun-21 17-Jun-21 7,502,019,10 888,000.00 620.967.85 - 9,010,986.95 Sub Total 22,822,165.10 1,678,287.00 1,408,222.85 42,267,459.00 68,176,133.95 Total 109,441,197.85 18,913,204.00 12,329,93035 209,693,915.02 350,378,247.22 USD Withdrawal Application Auth No. Value Date Category Total No. Date 1 2 3 4 Upto Previous year 789,013.60 160,402.59 99,982.29 1,476,606.10 2,526,004.58 TF016552-28 21-Aug-20 24-Aug-20 49,067,91 6,483.08 6,469.28 - 62,020.27 TF016552-29 26-Feb-21 3-Mar-21 - - 30,185.64 30,185.64 TF016552-30 17-Mar-21 18-Mar-21 81,800.46 - - 81,800.46 TF016552-31 15-Apr-21 20-Apr-21 - - - 147,615.72 147,615.72 TF016552-32 15-Apr-21 20-Apr-21 - - - 176,336.38 176,336.38 TF016552-33 16-Jun-21 21-Jun-21 64,905.55 7,682.99 5,372 62 - 77,961 16 SubTotal 195,773.91 14,166.07 11,841.91 354,137.74 575,919.63 Total 984,78751 174,568.66 111,824.20 1,830,743.84 3,101,924.21 SDR Withdrawal Application Auth No. Value Date Category Total No. Datea l2 3 4 Sub Total---- Totall-- 41 CA Sangan Dulal Labanya Raj Dahal Dr Madliusudhan Adhikari Financial Management Expert Chief Account Comptroller Executive Director AEPC AEPC AEPC Y-mPrasad Dhungana Sushil Chandra Tiwari Sumanraj Aryal M Kaphle Under Secretary (Account) Secretary Financial Comptroller General D ty Auditor General MoEWRI MoEWRI Financial Comptroller General Office Office of Auditor General Audited Projeet Accounr Report 5 Scaling Up Renewable Energy Program Disbursement Fiscal Year: 2020121 NPR Wilhdrawal Applicatio Auh No. Value Date Categ.,y Initi Deposit Total No. Date rh N.. V 2 3 4 Total Initial Depit1 27,075,0.00 27,075,000.00 pio Pre io ear 86.619,032.75 17.234,917.00 10,921,70750 167,426,456.02 282,202,113.27 282,202,113,27 TF016552-29 21-Aug-20 24-A.&-20 5,645.300.00 79),287.00 787.255.00 - 7.222,942.00 7,222,842.00 TF016552-29 26-Feb-2 i 3-Mar-21 - - 3,551,944.00 3.551944.00 3,551.94400 TF016552-30 17-Mar-21 19-Mar-2I 9.67484600 .. - 9.674,46.00 9.674.946.00 TF016552.31 15-Apr-21 20-Apr-21 - - 17,641,554.00 17.641.554.009 17.641.554.011 TFOI6552-32 15-Apr-21 20-Apr-21 - 21,073,%1.00 21,073.96.0 21,073.961.00 TF016552-33 16-Ju-21 I?-Jn-21 7.502.019.10 888000.00 620,96705 9.010,986.95 9,010.986.95 Sub Tali 22.822,165.10 1,678.287.00 1,4i0222.85 42,267,459.00 68,176,133.95 68,176,133.95 Total 109,44!,197.85 18,913,204.0 2,329,930.35 209693,915.02 3n0,378,247.22 27,075,000.00 377,453,247.22 usD) 7,502,.019TIO, Withdral Appliation A«h No. V a Dale C.tego~ Initial Depoil Total No. Da.e 1 2 3 4 Toala in0.al Depsi 0. 250 .0 250, 00 Upto Preious Year 789,013.60 160,402.59 9998 2.29 1,476,606.10 2,526,004.521 2,526,004.4% TF016552-28 21-Aug-20 24-Aug-20 49.067.91 6,483 08 _6.4691928 62,020.27 62,020.27 TF016552-29 26-Feb-2l 3-Ma-21 30,185.64 30. 185.64 30,18544 TF016552-30 17-Mar-21 18-Mar-21 81.800.46 - 1.800.46 81.800.46 TF016552-31 J5-Apr-21 20?-Apr-21 - -147,615.72 147,615,72 147.615.72 TF016552-32 5-p2120-Apr-21 - l 76,336.38 i 7.363 176,336.381 TF016552-33 6-u2117-wun-21 64.905,55 7,682.99 5372.62ý .L7.61. 77.961.16 Sub Tota[ 195,773.911 14,166.071 11(19 5,377 7,14 .00 575,919.63 Total 984,787.51 174,568.661 11,2.0 18743.841 3,101,924.21 2-50,000.00 3,351,924.21 SDR Wiltdrawl Application Au1h No. Välu. Dae Cateorv Inofi.I Deposit Total N. Dae 2 _4 Tt Sub T.1al 0.00 0.00 0.00 0,00 4100- 0.00 Total 0.00 0.001G 0.00 0.00- 0.00 09 CA Sangam nDulal Labanya Raj Dah Dr. Madhusudhan Adhikan Financial Managrent Expent Chief Account Cornpiroller Exeu(au Diector AEPC AEPC AEPC Vn Prsd Dhungana ,ushL Chan a Tiwar1 - M Kaphlc Under S re ccoun) Secrelary Financial Comptroler Genea] . Auditor Gerual OMEWRJ Financial Comptroller General Office iceofAudjor GenerW Audited Project Account Note 1 Scaling-up Renewable Energy Program (TF 016552NP) GoN and GoN Reimbursable Funds/ IDA Funds Replenishable Fiscal Year. 2020/21 Period: 16 July 2020 to 15 July 2021 Amount in NPR Cumulative up Current Fiscal Year Description to Previous Cumulative to Date Fiscal Year 1st Trimester 2nd Trimester 3rd Trimester Year to date GoN Fund Expenditure A Less: Source to be changed to IDA source Net GoN Expenditure GoN Reimbursable Funds: GoN Reimbursable Fund Expenditure 349,063,704.50 18,864,846.00 6,977,430.00 16,336,635.24 42,178,911.24 391,242,615.74 Less: Refund of Advance subsidy 2,310,871.00 2,310,871.00 Source to be changed from GoN source Less: Reimbursement Received 292,757,232.52 - 9,551,944.00 63,715,515.00 73,267,459.00 366,024,691.52 Net GoN Reimbursable Funds 53,995,600.98 18,864,846.00 (2,574,514.00) (47,378,879.76) (31,088,547.76) 22,907,053.22 C Total (D+E) 53,995,600.98 18,864,846.00 (2,574,514.00) (47,378,879.76) (31,088,547.76) 22,907,053.22 IDA Funds Replenishable (Designated Account Replenishable) Amount in NPR A Funds Transfer to GoN Treasury/ Direct Payment from IDA 293,151,676.27 - 9,551,944.00 63,715,515.00 73,267,459.00 366,419,135.27 B Less: Documented to IDA Credit C Less: Documented to IDA Grant 282,202,113.27 7,222,842.00 3,551,944.00 57,401,347.95 68,176,133.95 350,378,247.22 Net IDA Funds Replenishable (A-B-C) 10,949,563.00 (7,222,842.00) 6,000,000.00 6,314,167.05 5,091,325.05 16,040,888.05 CA Sangam Dulal Labanya Raj Dahal Dr. Madhusudhan Adhikari Financial Management Expert Chief Account Comptroller Executive Director AEPC AEPC AEPC Audited Project Account Note 2 Scaling-up Renewable Energy Program (TF 016552NP) Fiscal Year: 2020/21 Period: 16 July 2020 to 15 July 2021 Reconciliation Statement Amount in NPR Description As Per FCGO Records As Per Project Account Difference Remarks Reimbursable Government Fund 22,907,053.22 22,907,053.22 - Total 22,907,053.22 22,907,053.22 - Nepal Rastra Bank Banking Office, Thapathali (Account Statement) Client Code: 1202329 Client Name: ALTERNATIVE ENERGY PROMOTION CENTER A/c No: 1202329/001.005.840 A/c Name: KHA-4 SPECIAL DEBT ACCOUNT Currency: USD Trans. Date Value Date Amount FC NPR Ref./Chq. Description Dr/Cr Trans. Ref. Exch. Rate Balance 6/15/2020 6/15/2020 BALANCE b/d CR 157,407.63 157,407.63 8/24/2020 8/24/2020 61RMT/16/77/78 TF 16552 TF016552-8 CR 62,020.27 7,408,321.25 119.45 219,427.90 2/15/2021 2/15/2021 ORMT AS PER LETTER PA.SA 77/78 CHA.NA 20 DR -51,675.14 -6,000,000.00 116.11 167,752.76 3/19/2021 3/19/2021 6 IRMT/127/77/78 /REC/SCB//NEWYORK,SCBLUS33(FUNDS) CR 81,800.46 9,469,221.25 115.76 249,553.22 3/24/2021 3/24/2021 ORMT BAIKALPIK URJA PRAWADHAN KENDRA DR -86,520.16 -10,000,000.00 115.58 163,033.06 4/27/2021 4/27/2021 ORMT BAIKALPIK URJA PRAWADHAN/AMT TRF DR -125,786.16 -15,000,000.00 119.25 37,246.90 6/18/2021 6/18/2021 5IRMT/44/77/78 TF 1652 TF016552-33 CR 77,%1.16 9,217,347.95 118.23 115,208.06 3rd Trimester IUFR Note 2 SREP TFO16552 NP MAIN GRANT REGISTER Grant Amount: USD 7,900,000 S.No. WA No Particulars Category No. Requested Duth. No. isbursed Value Date Conv. Rate Equivalent to NPR Cumulative NPR Equivalent to US$ Cumulative USS Equivalent to USD Cumulative SDR Balance in SDR Cu Amount Cu Amount 1 0 Initial Deposit U.S,$ 250,000.00 0 U.S.$ 250,000,00 11-Feb-16 108.30 27,075,000.00 27,075,000.00 250,000,00 250,00000 250,000.00 250,000.00 7,650,000.00 2 1 Replenishment 1,3 U.SS 45,962.69 1 U.S.$ 45,962.69 24-Jun-16 106.75 4,906,593.80 31,981,593.80 45,962.69 295,962.69 45,962.69 295,962.69 7,604,037.31 3 2 Replenishment 1,2,3 US.S 33,358.46 2 U.S.S 33,358.46 30-Jun-16 108.36 3,614,722.70 35,596,316.50 33,358.46 329,321.15 33,358.46 329,321.15 7,570,678.85 4 3 Replenishment 1,2,3 U.S.S 59,809.75 3 U.S.$ 59,809.75 21-Feb-16 108.22 6,472,749.00 42-069,065.50 59,809.75 389,130.90 59,809.75 389,130.90 7,510,869.10 5 4 Replenishment 1,2,3 USS 101,484.10 4 US.$ 101,484.10 17-Mar-17 106.36 10,793,408.75 52,862.474.25 101,484.10 490,615.00 101,484.10 490,615.00 7,409,385.00 6 5 Replenishment 1,2,3 U.S.S 59,612.80 5 U.S.S 59,612.80 26-jun-17 102.94 6,136,327.00 58,998,801.25 59,612.80 550,227.80 59,612.80 550,227.80 7,349,772.20 7 6 Replenishment 1,2,3 U.S.$ 30,141.82 6 U.S.S 30,141.82 11-jul-17 102.84 3,099,780.00 62,098,581.25 30,141.82 580,369.62 30,141.82 580,369.62 7,319,630.38 8 8 Replenishment 1,2,3 U.S.$ 85,668.18 7 U.S.S 85,668.18 5-Mar-18 102.18 8,753,575.00 70,852,156.25 85,668.18 666,037.80 85,668.18 666,037.80 7,233,962.20 9 7 Reimbursement 4 US.S 175,748.79 8 U.S.S 175,748.79 2-Mar-18 103.50 18,190,000.00 89,042,156.25 175,748.79 841,786.59 175,748.79 841,786.59 7,058,213.41 10 9 Reimbursement 4 US.S 232,716.30 9 U.S.S 232,716.30 12-Apr-18 103.74 24,141,989.00 113,184,145.25 232,71630 1,074,502.89 232,716.30 1,074,502.89 6,825,497.11 11 10 Replenishment 1,2,3 U.S.S 41,457.22 10 U.SS 41,457.22 9-May-18 103.91 4,307,832.00 117,491,977.25 41,457.22 1,115,960.11 41,457.22 1,115,960.11 6,784,039.89 12 11 Replenishment 1,2.3 U.S. 64,650.33 11 US.$ 64,650.33 24-Jul-18 107.38 6,941,888.00 124,433,865.25 64,650.33 1,180,610.44 64,650.33 1,180,610.44 6,719,389.56 13 12 Reimbursement 4 U.S.S 15,726.72 12 U.S.$ 15,726.72 26-jul-18 109.88 1,728,052.00 126,161,917.25 15,726.72 1,196,337.16 15,726.72 1,196,337.16 6,703,662.84 14 13 Replenishment 1,2,3 U.S.$ 80,633.94 13 U.S.S 80,633.94 8-Nov-18 117.73 9,493,034.00 135,654,951.25 80,633.94 1,276,971.10 80,633.94 1,276,971.10 6,623,028.90 15 14 Reimbursement 4 US.S 22,314.72 14 U.S.$ 22,314.72 4-Jan-19 111.61 2,490,546.00 138,145,497.25 22,314.72 1,299,285.82 22,314.72 1,299.285.82 6,600,714.18 16 15 Replenishment 1,2,3 U.S.s 77,258.58 15 U.S.S 77,258.58 28-Dec-18 112.35 8,680,002.00 146,825,499.25 77,258.58 1,376,544.40 77,258.58 1,376,544.40 6,523,455.60 17 16 Reimbursement 4 US.S 142,613.39 16 U.S.S 142,613.39 6-Feb-19 113.85 16,236,534.00 163,062,033.25 142,613.39 1,519,157.79 142,613.39 1,519,157.79 6,380,842.21 18 17 Replenishment 1,2,3 US.S 68,942.85 17 U.S.S 68,942.85 26-Apr-19 112.01 7,722,288.00 170,784,321.25 68,942.85 1,588,100.64 68,942.85 1,588,100.64 6,311,899.36 19 18 Replenishment 1,2,3 U.S.S 36,372.02 18 U.S.$ 36,372.02 25-Apr-19 11201 4,074,030.00 174,858,351.25 36,372.02 1,624,472.66 36,372.02 1,624,472.66 6.275,527.34 20 19 Reimbursement 4 U.S.$ 219,303.33 19 U.SS 219,303.33 25-jun-19 110.81 24,301,00200 199,159,353.25 219,303.33 1,843,775.99 219,303.33 1,843,775.99 6,056,224.01 21 20 Replenishment 1,2,3 US.$ 33,071.15 20 U.S.S 33,071.15 24-jun-19 112.01 3,704,299,00 202,863,652.25 33,071.15 1,876,847.14 33,071.15 1,876,847.14 6,023,152.86 22 22 Replenishment 1,2,3 U.S.S 65,614.67 22 U.S.$ 65,614.67 15-Jul-19 112.01 7,349,499.00 210,213,151.25 65,614.67 1,942,461.81 65,614.67 1,942,461.81 5,957,538.19 23 23 Replenishment 1,2,3 U.S.$ 59,644.04 23 U.S.$ 59,644.04 25-Dec-19 112.38 6,702,562.00 216,915,713.25 59,644.04 2,002,105.85 59,644.04 2,002,105.85 5,897,894.15 24 24 Reimbursement 4 U.S$ 19,937.03 24 U.SS 19,937.03 3-jan-20 113.81 2,269,035.00 219,184,748.25 19,937.03 2,022,042.88 19,937.03 2,022,042.88 5,877,957.12 25 25 Replenishment 1,2,3 US.S 105,715.88 25 USS 105,715.88 8-Apr-2Q 113.73 12,023,067.00 231,207,815.25 105,715.88 2,127,758.76 105,715.88 2,127,758.76 5,772,241.24 26 26 Reimbursement 4 U.S. 117,496.07 26 U.S.S 117,496.07 8-Apr-20 120.71 14,182,950.61 245,390,765.86 117,496.07 2,245,254.83 117,496.07 2,245,254.83 5,654,745.17 27 27 Reimbursement 4 U.S.$ 530,749.75 27 U.S.$ 530,749.75 15-Jul-20 120.37 63,886,347.41 309,277,113.27 530,749.75 2,776,004.58 530,749.75 2,776,004.58 5,123,995.42 28 28 Replenishment 1,2,3 US.S 62,020.27 29 U.S.S 62,020.27 24-Aug-20 116.46 7,222,842,00 316,499,955.27 62,020.27 2,838,024.85 62,020.27 2,838,024.85 5,061,975.15 29 '9 Reimbursement 4 U.S.5 30,185.64 30 U.S.S 30,185.64 3-Mar-21 117.67 3,551,944.00 320,051,899.27 30,185.64 2,868,210.49 30,185.64 2.868,210.49 5,031,789.51 30 30 Replenishment 1,2,3 U.S.S 81,800.46 31 US.$ 81,800.46 18-Mar-21 118.27 9,674,846.00 329,726,745.27 81,800.46 2,950,010.95 81,800.46 2,950,010.95 4,949,989.05 31 31 Reimbursement 4 U.S.S 147,61572 32 U.S.S 147,615.72 20-Apr-21 119.51 17,641,554.00 347,368,299.27 147,615.72 3,097,626.67 147,615.72 3,097,626.67 4.802,373.33 32 32 Reimbursement 4 U.S.$ 176,336 .38 33 U.S.S 176,336.38 20-Apr-21 119.51 21,073,961.00 368,442,260.27 176,336.38 3,273,963.05 176,336.38 3,273,963.05 4,626,036.95 33 33 Replenishment 1,2,3 US.S 77,961.16 33 U.S.$ 77,961.16 17-Jun-21 115.58 9,010,986.95 377,453,247.22 77,961,16 3,351,924.21 77,961.16 3,351,924.21 4,548,075.79 Total 3,351,924.21 2,776,004.58 320,051,899.27 2,776004.58 2,776,004.58 Scaling Up Renewable Energy Program Accounting Policy and Explanatory Notes 1. Project Background: IDA Grant TF 016552NP was signed of 7.9 Million US Dollar out of which 6.225 million is allocated for Reimbursable part of Subsidy Payment and balance for Technical Assistance. The grant/project agreement was approved on 24 November 2014. 2. Statement of Compliance Project Financial Statements have been prepared in accordance with Audit Guide of Project Financial Statements issued by Office of the Auditor General, Nepal in 2015; Financial Procedural Act and Rules of GON and GON Accounting Guideline 2016 issued by FCGO. 3. Basic of Accounting The project has maintained accounts according to the Government of Nepal Accounting policies on a cash basis of accounting and double entry accounting systems. 4. Fund Flow mechanism After the annual budget is approved by the parliament, MOF issues authorization letter to the Ministry of Energy, Water Resource & Irrigation (MoEWRI). (MoEWRI) then issues authorization letter to the Executive Director of AEPC to spend budget. GON fund and reimbursable fund is released by District Treasury and Controller Office as per Treasury Single Account System (TSA) as per approved annual program and budget breakdown. AEPC is solely responsible for all payments. AEPC prepares withdrawal applications and sends to IDA for reimbursement and replenishment. 5. Designated Account Separate Designated Account (in USD) have been established. Designated Account is operated with the joint signatories of the Executive Director and Chief of Account Section of AEPC. Separate ledgers have been maintained at AEPC for day to day financial transactions for both Accounts. It is used to transfer the amount to the GON central account for reimbursement purpose. 6. Sources and Uses of Fund Project Financial Statement (Main sheet) reflects the figures as Source and Uses of Fund. GON fund, GON reimbursable fund, Donor's grant, and Donor fund replenishable amount are the main sources of the project. Category wise total expenditure are shown in the Uses. The expenses made under different category have been reclassified from Interim Financial Monitoring Report as per actual nature of expenditure. e ota- 7. Cumulative up to the Previous FY and current FY Cumulative up to Previous FY is shown for cumulative purpose and consists of cumulative amount at the end of previous year from inception of the project. Similarly, cumulative up to the current FY is derived by adding cumulative up to previous year and current year's data. 8. Advances Advances are treated as expenditure. 9. Exchange Rate Applicable Buying rate (exchange rate) as per Nepal Rastra Bank is applied for the unspent balance (USD) in the Designated account at the end date of FY to convert it in Nepalese rupees. 10. Nepalese Fiscal Year FY 2020/21 commenced from 16 July 2020 and ended on 15 July 2021. The figures mentioned in this Project Financial Statement are within this reporting period. 11. Budget VS Expenditure of the Current FY: % of Category Description! Component AnuaBde Expenditure expenditure No. Allocation (FY 20-21) over budget allocation I Non consulting, Consultants services & 29,700,000.00 23,566,967.00 79.35% training(Launch of online web portal, Third party verification, Provision of subsidy for partial financing of w2e) 2 DFS (Market research, BP,EMP etc.) 5,000,000.00 3,314,439.40 66.29% 3 Incremental operating(consumables, vehicle 5,300,000.00 2,797,504.84 52.78% rental/leasing, equipment maintenance/repair, domestic travel, communication, bank charges, advertisement) 4 Reimbursable Part of Subsidy Payment 170,000,000.00 12,500,000.00 7.35% Grand Total 210,000,000.00 42,178,911.24 20.09% 12. Reporting currency The reporting currency is in Nepalese Rupees- NPR (currency of Nepal). The amount disbursed from IDA Grant are separately shown in Report-5 of Project Financial Statements. 13. Intended Purpose IDA Grants have been used only for the intended purpose of the project. 14. Date of Authorization These project financial statements have been authorized for issue by the Alternative Energy Promotion Center, Kathmandu on 14 June 2022. CA Sanga lal Lab Dahal Dr. Madhusudhan Adhikari Financial Management Expert Chief Account Controller Executive Director