M;1 , 941104 - 500 004 OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT)- ANDHRA PRADESH, HYDERABAD - 500 004. Lr. No. PAG(Audit)/AP/SS/EAP&SARJU.11/2020-21/ 5 Date:29,5.2020 To The Engineer in Chief (R&B) SII,PPP,CP & Managing Diretor, APRDC, 5 Floor, R & B Complex, M.G.Road, Vijayawada - 520010 Andhra Pradesh Sir, Sub: Issue of Audit Certificate for the year 2018-19 and 2019-20 (upto July 2019) in respect of Andhra Pradesh Road Sector Project (APSRP) - (Loah/Credit NO.7792-IN) I am to forward the reports of Comptroller and Auditor General of India for the years 2018-19 and 2019-20 (upto July 2019) in respect of World Bank assisted "Andhra Pradesh Road Sector Project (APRSP), Vijayawada, (Loan/Credit No.7792-IN) alongwith enclosures viz., 1. Statement of Admittance (Annexure-1) 2. Statement showing details of disallowances made from expenditure incurred (Annexure-II) 3. Statement of Previous Disallowances allowed in the year 2018-19 (Annexure-III) Receipt of the above mentioned documents may please be acknowledged. Encl: As above fTours thfully, con tat eral/SS Copy to: (without enclosures) 1 ehief Secretary to Government of Andhra Pradesh (Transport, Road and Buildings), 5 Block, Is Floor, Room No.213, AP Secretariat Office, velagapudi, Andhra Pradesh -522503. Dy. Accountant General/SS E-mail: aqauandhrapradash2@Cag.gov.n Fax No. 040-23210125 INDIAN AUDIT AND ACCOUNTS DEPARTMENT Olo THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT) ANDHRA PRADESH STATE HYDERABAD 500 004 Report of the Comptroller and Auditor General of India To The Engineer in Chief (R&B) SH,PPP,CP & Managing Director, APRDC, 5th Floor, R & B Complex, M.G.Road, Vijayawada - 520010 Andhra Pradesh Report on the Project Financial Statements We have audited the accompanying financial statements of the Andhra Pradesh Road Sector Project (APRSP) financed under World Bank Loan No. 7792- IN, Vijayawada which comprise the Statement of Sources and Applications of Funds and the Reconciliation of Claims to Total Applications of Funds for the year ended 31" March 2019. These statements are the responsibility of the Project management wing. Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We have conducted our audit in accordance with the Auditing Standards promulgated by the Comptroller and Auditor General of India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Our audit examined, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Project Financial Statements present fairly, in all material respects, the sources and applications of funds of Andhra Pradesh Road Sector Project (APSRP) for the year ended 31 March 2019 in accordance with Government of India accounting standards. In addition, in our opinion, (a) with respect to SOEs, adequate supporting documentation has been maintained to support claims to the world bank for reimbursements or cxpenditure incurred; and (b) except for ineligible expenditure of Rs.114,94,415/- as detailed in the audit observations, appended to this audit report, expenditures are eligible for financing under the Loan/Credit Agreement. During the course of the audit, SOEs/FMRs and the connected documents were examined and these can be relied upon to support reimbursement under the Loan/Credit Agreement. This report is issued without prejudice to Comptroller and Auditor General of India's right to incorporate the audit observations in the Report of Comptroller and Auditor General of India being laid before Parliament/State or UT Legislature. D A OUN ANT GENERAL (SS) AUDIT CERTIFICATE The Expenditure Statement/Financial Statement relating to Andhra Pradesh Road Sector Project (APRSP), (Loan/Credit No.7792-IN) Or the ycir cnded 3 1" March 20 attached hereto have been audited in accordance with the regulations and standards of audit of the Comptroller and Auditor General oC India and accordingly Included SLch tests of accounting records, internal checks and controls and other auditing procedures necessary to confirm. a) that the resources were used for the purpose of the project and b) that the expenditure statements/financial statements are correct During the course of the audit referred to above, Statement of Expenditure (SOE) (for an amount of Rs.1,74,58,32,147/-) and the connected documents were examined and these can be relied upon to support reimbursement under the aforesaid loan/credit agreement. On the basis of' the information and explanations that have been obtaincd as required and according to the best of our information as a result of the test audit it is certified that the expenditure statement/financial statements read with the observations set out below represent a true and fair view of the implementation (and operations) of the project for the year 2018-19. This certificate is issued without prejudice to CAG's right to incorporate any further/detailed audit observations if and when made in the Report of CAG of India for being laid before Parliament/State Legislature. AUrAM > LLADA Deputy A 'ountant Gcneml/SS dit Observations/Disallowances on Certification .Inspectio Road Secto01Project Audit of Externally Aided Project of Andhra Pradesh Road Sector Project (APRSP), oan No.7792-IN for the years 2018-19 and 2019-20 (upto July 2019). (Dates of Audit: 21-01-2020 to 26-02-2020) 1. UnadjustedlUtiliy Shiftihg Charges disallowed- Rs. Ll4 Crore (Component Al) As per World Bank Norms, expenditure incurred towards Utility Shilling Charges are not rchnbursab\c. Scrutiny oi records rcvcalcd that Utility Shilling Charges was included in the running account bills paid to the contractor and thc same was included in the SOE. As per WNorld Bank Loan Terms and conditions the Utility Shifting Charges are not reimbursable. The details of Utility shifting charges are mentioned below: Items Name of Work Bill Amount descriptions (InRs) utility Widening and Strengthening of Chittoor IPC-47 dated 7,04,626 Shifting - Putur Road from 03/200 to 64/000 in 04.03.19 Charges Chittoor District (Package No CP-01)"2 -do- Widening and Strengthening of IPC- 36 1,06,87,254 Nydukur-Jammalamadugu Road Trom to DL23.07.18 Km 177/400 to 194/670 in Kadapa dist(Package No-MI-04) -do- Widening and Strengthening of Pedana- IPC-36, 56,992 Nuzvid--Vissannaput Road from to Km Dt. 05.05.18 62/250 to 95/460 in Krishna dist (Package No PNV-09) Total 1,14,48,872 As the amounts mentioned above are not reimbursable by the World Bank, the same is disallowed for reimbursement. 11. Certification Audit of APRSP for the year 2018-19 and till 07/2019 - Aniount not. eligible for reimbursement as per World amnk Regulations - Rs.45, 543 (Component A4) Scrutiny of vouchers furiishcd to audit in respect of clain of Expenditure For the year 20I-19 and till 07/2019 of 2019-20 under APRSP revealed that the following amounts are not cligible fb reimburs,ert- in- ri/o the Wurkv done in Social Forestry Section, Proddatur of Social Forestry Range, Jammalamadugu of Social Forestry Division, Kadapa through Somulavaripalli VSS- S r, No r No Vr. No Amount (Rs) Details Reasons for disallowance Fertilizers bill (Sri No printed receipt number on the 1. 50 268 Kallai SWamy bill. 50 22,6 888 Gencral Stores, J anunialamuadugu) 20,000 POL (M/s Theja No Vehicle number on the bill aid 3 134 20,000 Filling Centre) no logbook details and not covered in the sanctioned Estimate. Electrical Bill (Sri It's the 'Estimate' attached with the Tulasi Electrical voucher but not the actual bill. Stores) Further, there is no 'Name' written on the bill. TOTAL (Rs) 45,543 Hence, an amount of Rs 45,543 is disallowed for reimbursement. Deputy ant GeneralISS : �___ � _ � Anwexlirc-1 ST�TEMFлT S���",1�G'CIIEDETAII,S (lF EX�ENnI-�'UKE 1�CLRR -- _ FOR"TE�E, pF,k10I) FiZp;� 01 04.1g ТО 31.03.�9 l�, EU i.c., САТЕ(�O1ty_�ц1SF, CO�tPOtiE�"1-��'IS1?, [JN17� OFF1CE-�VISF.�DISTRICT-�i'I�F. S\ Ro r xr'�РЕ��Т �F ��'ORLD t31NK AStilSГ1;П/F.КI'ERNALLI :�1ПН,L1 PROJECT (LOan \л.7792-1Ч/AYRSP) Calegocyl Сотропеsц Name пС the Audace -- SUE R�urc I l5nit Асги�1 а[»оипг claimed Ьу Accua ЕхреидiУип as E:xpenditum Expenditure PercentaKe Amaunt � СОтропеп2 q\ dePпrtmcnt veriГ�ed йпаидiг disallowed in пидi[ admicted in дидiг admissiЫe reimbwsaЫe 2 pMt1. НудетаЬazц<' �}ауаwлда Сотролепт А2 РМ1}.НудеггЬадh,'�jayawada 1171954U74 117195407�1 3 Сотролс 2t АЗ 674д}�q� - 111195407д 11ддg872 1160505202 80 928aGi1ti2 PMU. КydcrabadгVilayawada б1д41002' 674410G`г 0 67441(Х)2 20 д Сотропепг Ад РЛN. HyderabиdNi� -- 14�U338�1б _ 1±дх82W s �куа.иада 1д2озз84n 1агОзз8аь о lагоззвл6 80 11;б»г,77 Сотроггеп; д4(сс) PMU, Hyderabed�Vi' 8737000 8737000 ь Jпуа.чада z6г8:з1s2 в7з7а;:г assaз 3ь91аг7 80 - - Component .45 Ph'fU, НудегаЬадЛ�i 262831 S2 ��`�` �: ti6 7 1�'а"'�а 17247Sд00 ?6283152 0 26'?g315_� р �� Сотропег,г Сд PML), Hyderr}�advijayawada 172475400 172475400� р 8 13439�946 172дЛдU0 р _ р Сопгропепг С5 рЛqц, HydcrabadNijayяwпda 134392946 13д392лд5j 0 13д3929Jб 9 Согпропелt D 1 0 р - - 80 1 G?5 i i; 5 г РМц, HydcrabadNi� 0 -- 10 J�wada 0 р ЕО � Сотропепг D2 РЛггц, Нудегзhад'Vijayawada � � ' П 0 CRr1i\'Т ТОТА г, 22514727 2Z51 �•7..7 22514727 80 0 г7аsвэгlа7 i�asaзг►s� �7assзzca; о 2гsta7z7 во 1so;,,sz 1 юssa�s i�зазз77зг 12 &', 99g т д3 i ; - �С- �t�г�� _ , sr. лгга�г orrrer�,�P ANNEXUREII -SMATEMENT S140WING THE DETAILS OF DISALLOWANCES MADE FROM THE EX.PENDIUTRE INCURRED DURING THE YEAR 2018-19 IN RESPECT OF WORI,D BANK ASSISTED ANDHRA PRADESH ROAD SECTOR PROJECT (LOAN NO, 7792- IN) Compone SI.No. nt Unit Reasons for disallowance Amount I i I i I I Al IINIU, 1)i ,iiicntof'ut]117.liig.slifftingcliirC(, viiich 11,448,87272 Vijayamd is 0% reuinburmimif afld add for reirnburse a 2 A4 DFO, Fertilizer bills, Electricity charges, POL 45,54343 Kadapa charges which are not eligible for reimbursement Total 11,494,415 Sr. Audit Officer/E-AP Annexure-III "E SIOWING THIE DETAILS OF DISALLOWED AMOUNTS FROM EXPENDITURE OF PREVIUS YEARS NOW (2018-19) RELEASED IN RESPECT OF WORLD BANK ASSISTEDI ANDIIRA PRADESII ROAD SECTOR PROJECT (L.OAN 7792-IN) Year of Amount Amoun now 1Balance S. No, Nålle or Ile Unit disnllownnce d!isllowed rele.ised (Rs.) disallowance (Packages))Rs.) _ amount (Rs.) 2010-11 655813 0 655813 2 ll 1-12 18157000 U1 8 570 2012-13 88152447 88_5Q007 2û4-5 j894 1889391 2012-13 105695 0 1065695 PMU, lyderabadl 2013-14 69827 69827 0 Vijaynwada 2013-14 198154 0 198154 2013-14 75012 75012 2014-15 242424 0 242424 2017-18 111917838 111917838 2017-18 6487882 0 6487882 2017-18 3947142 0 3947142 2017-18 1470035 0 1470035 R&IB Division, 2009-10 47604 47604 0 Rajahmundry201 82 3 R&B Division, 2012-13 20812 20812 Guntur 4 RDC, Gunmur 2017-18 354672 354672 0 &B Division, 2011-I 125527 1255274 ýrikakulam R&B Division, 2013-14 2891i 2899 _ i Kurnool 2015-16 41369 41369 0 R&B Division, 2014-15 5494 0 5494 Kalyandurg 2014-15 27469 0 27469 R&B Division. 2012-13 90001 0 9000 Oneole R&B Division, 2013-14 1881287 1881287 9 Nundval 2015-16 81648 81648 2015-16 7419083 7419083 10 R&B Division, 2017-l8 44394 44394 0 i Parvathipuram -_ i R&B Division, 2014-15 11588 111588 Dharmavairam 2011-12 202500 202500 ( 12 DFO Chitloor 2012-13 1700000 1700000 0 2013-14 1200000 120000 I 13 DFO, Kadapa West 2016-17 3210000 32100 14 DFO, Vijayawada & 2017-18 2316830 2173230 143600 kurnool TOTA 270162028 147622212 122539816 7Sr. Audit Officer/EAP f l 4J 9 2- ¿ v é,