Financial Attest Audit Report on the Accounts of Sindh Agriculture Growth Project (Livestock Component), Hyderabad IDA Credit No.5494-PK Livestock & Fisheries Department Government of Sindh for the Financial Year 2020-21 Auditor-General of Pakistan TABLE OF CONTENTS Page No. Abbreviations and Acronyms I Preface II PART - I Project Overview 01 Auditor's Report to the Management 02 Financial Statements )3 PART - II 06 COVER LETTER TO THE MANAGEMENT LETTER 07 EXECUTIVE SUMMARY 08 1. Introduction 09 2. Audit Objectives II 3. Audit Scope and Methodology 11 4. AUDIT FINDINGS AND RECOMMENDATIONS 12 4.1 Organization and Management 12 4.2 Financial management 14 4.3 Procurement and contract management 18 4.4 Asset Management 20 4.5 Overall Assessment 21 5. FOLLOW-UP OF PRIOR AUDIT 23 6. CONCLUSION 24 5.1 Key Issues 24 ACKNOWLEDGEMENT 25 Abbreviations& Acronyms Al Artificial Insemination DAB Director Animal Breeding DAC Departmental Accounts Committee DAI Director Animal Husbandry DCVDL Director Central Veterinary Diagnostic Laboratory DFM District Field Manager DPD Deputy Project Director GFR General Financial Rules GOS Government of Sindh IDA International Development Association ISSAI International Standards of Supreme Audit Institutions PIUs Project Implementation Units PMU Project Management Unit POL Petrol Oil Lubricants RFQ Request for Quotation SAGP Sindh Agricultural Development Project SFR Sindh Financial Rules PREFACE The Auditor General of Pakistan conducts audit subject to Article 169 and 170 of the Constitution of the Islamic Republic of Pakistan 1973. read with section 7 of the Auditor General*s (Functions. Powers and Terms and Conditions of Service) Ordinance 2001. The Financial Attest Audit of the Project "Sindh Agricultural Growth Project (Livestock Component) financed by the World Bank through IDA Credit No.5494-PK was carried out accordingly. The Directorate General Audit Sindh. Karachi conducted audit of the Sindh Agricultural Growth Project (Livestock Component) in September. 2021 for the period 01 " July 2020 to 30th June 2021 with a view to expressing opinion on financial statements and reporting significant findings to the stakeholders. Audit examined the economy, efficiency. and effectiveness of the Project. In addition, Audit also assessed, on test check basis, whether the management complied with applicable laws. rules, and regulations in managing the Project. The Audit Report indicates specific actions that, if taken, will help the management to realize the objectives of the Project. The Report has been prepared for submission to the World Bank in terms of Loan Agreement. Dated: (Nazar u a mad) Karachi Direi r ( eneral Hi PART - I 1. PROJECT OVERVIEW 2. AUDITOR'S REPORT TO THE MANAGEMENT 3. FINANCIAL STATEMENTS PROJECT OVERVIEW Name of Project Sindh Agriculture Growth Project (Livestock Component) Sponsoring Authority Secretary. Agriculture Supply & Prices Department. Government of Sindh Through World Bank Loan Executing Agency Secretary Livestock & Fisheries Department. Government of Sindh. Loan/Credit # IDA-5494 PC- I Cost US$ 88.7 million (US$ 76.4 million Loan + US$ 12,3 million Contribution from farmers) Date of Loan/Credit 25"' August ,2014 Signing Date of Loan/Credit 30"'October 2014 Effectiveness Date of Completion 30"'June 2019 Date of approval from 7"' iuly 2014 ECNEC Effective Loan/Credit 3 1" May 2021 Closing Date Loan/Credit Utilization Rs669.242 million status in F.Y 2020-21 Loan/Credit Utilization Rs2,566.983 million Up to Last F.Y 2019-20 1 AUDITOR'S REPORT TO THE MANAGEMENT The Director General Audit Sindh, Karachi has audited the accompanied Financial Statements. as of 30" June 2021. of the Project "Sindh Agriculture Growth Project (Livestock Component)" SAGP-L. financed through International Development Association (IDA) Credit No.5494-Pak. Preparation of Financial Statements is the responsibility of the Management of the Project. Responsibility of the Audit is to express an opinion on the accompanyi ng Statements based on the audit exercise. The audit exercise was carried out in accordance with the International Standards of Supreme Audit Institutions (ISSAI), These Standards require the Audit to obtain reasonable assurance that the Financial Statements are free of material misstatements. This audit is based on the test check basis and includes findings, evidence supporting the amounts and disclosures in the Financial Statements. It also includes assessment of the Accounting Principles used by the Management in preparing Financial Statements. Professional approach has been applied in evaluation of Financial Statements to provide a reasonable basis for audit opinion. In our opinion: A. The aforementioned Financial Statements that were subject to audit. fairly present in all material aspects the financial position of the Project -Sindh Agriculture Growth Project (Livestock Component)" (lDA) Credit No,5494- Pak and the results of its operations for the period ended 30.06.2021 are in conformity with Cash Basis International Public Sector Accounting Standard. B. The sums expended have been applied. in all material respects. For the purposes authorized by Parliament and have, in all material respects. been booked to the relevant grants and appropriations. Dated: (Nazar h a Karachi Direct eral 2 FINANCIAL STATEMENTS SINDH AGRICULTURAL GROWTH PROJECT (LIVESTOCK COMPONENT) IDA Credit No.5494-Pak (LIVESTOCK & FISHERIES DEPARTMENT) FOR THE YEAR ENDED 30th JUNE, 2021 3 Sindh Agricultural Growth Project (Livestock component) Sindh Livestock & Fisheries Department IDA Credit No. 5494 PAK (D Statement of Cash Receipts & Payments , 4or'the FY 2020.21 - ___Curn.Atrve Notes 2020-2021 (PKR) 2019-2020 PKR) 2018-2019 (PKR) 2017-2018 (PKR) 2016-2017 20152016 2014-2015 (KR) 50, (PKR) PKR) (PIKR)E Opening Balance 1 794,105 603 403.222.000 265,717,976 354,826,032 3644 39" 258.110,1K51 - Receipts/ Inflows IDA Desj4natedAccount 3 790.570.200 739,749,200 902780,000 353,044,233 269.556.498 305.388,900 3.361.0&t.0i1 2 Goverment ot Sindh 4 C) Farmer's Centribution 5 Total Receipts 794,105.603 1,191.792.200 1,005,467.176 1,257,606,032 729,483,199 527,667,349 305,388.900 3,360l'9,031 2726,4X 60 Payments (By Components) A- Capaizy Bulding and Ins,tutonalDevelopmrent 6 268.464,030 149,71l.232 276,674,045 416,207.027 92.39U.67 14,726X57 400,000 1,221 54,.1 v 1 B. Daýry value Cham 7 314.633,315 161.709 223 238,874,765 512,33 ,024 221.30A,832 102,665,0b 24,106396 1,5762 :. t C. Project Management and Mcntoreg and ?valuatron 8 86 139.52S S 266 142 86,696.366 b2,9 1.005 $4 926.4983 33 829.020 22.3 713,53 425 1 Total payments "09.241,873 399,686.597 602,245,176 991,883,056 374,662.167 153,22 3383 47,278,049 3.236.225301 26 6 Clo"ng balances iDA De'nSated Arcoånt 124.813,730 794,105 903 403,222,000 265,717,976 354.326.032 3 76,443,96>6 25,3 :0851 Il, . . Goernment al 5ndh F armer. Contnbutor Closing Balance 124,863.730 794,105,603 403,222,000 265,717.976 354.526,032 376,443,966 258,110,851 124,1673. 72 I93 207 G Cah at the begin of the yejr Incrase/ Decrease in Cash Casih at the end of the year Note; Thei notes froi 1 8 form an tal part i Ir, c.h flow statenrent ol the Proiect i s&p'enditureo of I2 (nternatonal Laestock Kfearcth insLtute) iade through Drect PLymnent .n Dolars tiom orld [nk to ILFi CaA, ccoLint n CI n, New ,ufr USA amount Ioc . PEea,e 1.nd the expeniditure in iext sheet mr USD tfiLUY RU JECT DIRECTOR SlUDH AGRiULI UR Al RSF0 m H PROC (LVESTOCK COU NFNT) Direct Third Party USD Payments from SAGP-LIVESTOCK 0 Paynent to ILRI & £ African center Amount USD Paid S.No. Transaclion Benificiary Claimed BILLS after deductions Conversion Rate PAK Rupees _~ Date ADV & Inc.Tax ItRI- Nerobi Kenya 5th Bill Direct Payment at NEW- 31-May-21 YORK CITI Bank $ 373,618.00 $ 118,346.13 154.940 PKR 18,336,549.38 tI RI- Nerot, Kenya 4th Bill Direzt Payrnent at NEW 2 25-un -20 YORK CITI Bank $ 156,391.21 $ 95,389.41 167.350 PKR 15,963,418.96 ILRI- Nerobi Kenya 3rd Bill Direct Payment at 3 $ 89 2 160.0001 PKR 4,107,078.40 3 C7+Aug-19 1YORK CMT Bank $ 346,053.05 $ 281,919.24 1000P 51708A ILRI- Nerobi Kenya 2nd Bill Djrect Payment at NE W 4 17.lun.19 YORK CITI Bank $ 124,588.55 $ 105,783.70 157.200 PKR 16,629,205.89 ILRI- Nerobi Kenya Ist Biil Dirct, Paynent at NEW 5 15-Aug-1S YORK CMT Bank $ 172,647.05 $ 155,382.34 122.565 PKR 19,044,427.34 itR- Nerobi Kenya Advance Direct Payrnent at NEW B 27-Jun i YORK CITI Bank $ 79,967.99 $ 129,512.20 121.730 PKR 15,765,523.62 7 23-OCt-17 AFRICA CENTER FOR HOLISTIC $ 61,750.40 $ 61,750.40 105.405 PKR 6,508,798.15 Total $ 1,315,016.25 $ 948,083.42 144.876 PKR 137,355,001.74