AUDITOR'S REPORT Audit Completion Date: 15-12-2020 Senior Secretary Finance Division Ministry of Finance Bangladesh Secretariat, Dhaka. I. We have audited the accompanying financial statement of the "Nuton Jibon Livelihood Improvement Project (NJLIP)" for the fiscal year 2019-2020 financed under IDA Credit No -5594-BD as of 30t June 2020 and for the years then ended. The preparation of financial statement is the responsibility of management. Our responsibility is to express an opinion on the financial statement based on our audit. II. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. III. The Financial Statement gives a fair view in all material aspects of the financial position of "Nuton Jibon Livelihood Improvement Project (NJLIP) "financed by IDA Credit No -5594-BD as of 30th June 2020 and the result of its operation and cash flows for the year ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. IV. Opinion Status: Unqualified. (Subodh Kumar Roy) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 8317190 C:\Users\fapad\DeskTop\Final Repon Teai-7, 27.12.2020 - Copy\Final Report NJLIP-22.12.2020.doc -7- FillallCial Statemellt ■園醐園■園園国■■園国■■園園園日日■日国■■曲国国日日国日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日日自国日国自 lO Nuton Jibon Livelihood Improvement Project Credit number 5594-13D, Implemented by SDF Project Financial Statement 30th June, 2020 (Figures in Lakh Taka) Resources Notes Cumulative Current Period Cumulative Current Prior Period Period Cash Opening Balance 12,220.87 Fund received from GOB 15,600.00 - 15,600.00 Loan from Development Partner 133J336;63 21,394.08 154,730.71 Other Resources 527.49 153.21 680.70 Total Resources 1 149,464,12 33,768.16 171,011.41 Expenditure and Cash Component Al: Development and Strengthening 16,627.73 2,780.09 19,407.82 Commun tv Insitutions 2 Component A2-' Financing Of Community Plans 103,687,04 7,165 78 110,852,82 3 Cornponem.41.3: Nuittion Awareness and SuppoTt 1,149.69 720A6 U69-85 Cornponen L .6 : busine.ss Partnerships Development and Market L nkages 2,212.55 5,506,20 7,718.75 5 Component 62-, Second-ter Institutional Development Z 105.90 1,864-80 3,970.70 Support T Component 23 Employment Generation Support 194-28 263.41 457,69 7 1 "'omponent Cl: F--c;ect Managementf]DA) 94,35 28.60 12/0-95 -8 Componeit C2: j .,Ionitoring and Learning 847.14 289.27 1'136 41 Total IDA 126,918.68 18,618.32 145,537.00 9 COmponent Cl: Project Managernent(GOBIJ 2,605.68 12,930.25 rota[ Expenditure 137,243.251 21,224.00 158,467 25 lCash Closing Balance 12,220.87 12,544.16 12,544,16 1 IDA Advance 1,26 0.06 0.06 Operatlng Arcount (RPA) 4,898.30 7,635,75 7,63575 0-pe-ating Acc ount(3 Region Office) 1,518.38 1,557.90 1,557.90 GOB Advance 28M 34.32 34.32 Operating Accourit 5,694.60 3,221.75 3,22175 Operating Acxunt(I; Fegion Office) 79 50 9439 94-39 Total Expenditure and Cash U9.464.12 33,76816 11.41 lx). T'lossain ofprel. Audit 'kditolrert I *dedPC*a -- FaTe Sn IV (60 & I I h FID00 Audit camp . ha Dha ,V- Segunbagil- Social Development Foundation (SDF) Nuton Jibon Livelihood Improvement Project SPECIAL/ DESIGNATED ACCOUNT STATEMENT For the year ending June 30, 2020 Account No. 4416403000119 Depository Bank Sonati Bank Ltd., Lalmatia Branch, Dhaka Related Credit Agreement No. 5594-BD PART-A ACCOUNT ACTIVITY (Figure in BDT) Begining balance as on July 01,2020 489830,392.50 Advance 4980325 Addan:e151,964,057-00 Add:- Reimbursement against submission of withdrawal application 2139,40763300 Other Received Total Received 2,781,202,083 Total amount refunded to cover ineligible expenditure Nil Deduct: Total amount withdrawn 1,861,832,000 Expenditure 1,8611832,83 Excess of income over Project expenditure Less. Field level Bank Accounts Add. Credited in the Bank Book but not deposited by Bank 11,516,4542 Add. Cheque issued but not presented 10,667,944.00 Less : Advance 6,900 Balance as per bank statement as on June 30, 2020 785758,960 d. 85bubul 96la0 ~M. Murhed 14oSSal" Audit & Accoiil Audi ait cha. DhO,~ PART - B ACCOUNT RECONCILIATION: 1 Amount advanced by World bank 1,200,000.000.00 2 Less: Total amount recovered by World bank Equal: Present outstanding amount advanced to the special account at fiscal year ended June 30,2019 1,200,000,00000 4 Ending balance of special Account at fiscal year ended June 30,2020 785,758,959.91 5 Plus: Amount claimed and not vet admitted at fiscal year and June 30.2017 Application No. Amount Arnount spent and not yet claimed till June 30,2020 280,629,917.00 Withdrawal Application No.43 280,629,917.00 6 Plus: Amount withdrawn and not yet claimed till June 30,2020 7 Less: Interest Earning ( If included in Special Account) Nil 8 Plus:Service charges (If not included in lines 5 and 6 above) Nil 9 Balance lying with operating account at field level: i) Agrani Bank Ltd., Battola Branch, Barisal 17,351,690.50 ii) Sonali Bank Ltd., Mymensingh Branch, Mymensingh 57,316,325.00 iii) Sonali Bank Ltd., Khulna Corp. Branch, Khulna 75,495,707.75 iv) Advance for differrent purposes 5,631,797.84 155,795,521.09 Less: i) Cheque issued but not presented into Bank for 10 payment till June 30, 2020 10,667,944.00 il)Interest credited by Bank but not entered in cash book 11,516.454.00 22,184t398.00 11 Equal: Total advance to Special Account accounted for fiscal 1,200,000,000.00 year ended June 30,2020 s9..uMatshbubl Aiaos S.M Murshed flOSsain Poeludit & Ac)ts officer AUitomp'~t& I 1th Floor) SegLmbagichKa, Dhaka Nuton Jibon Livelihood Improvement Project Notes to the Financial Statement 30th June, 2020 1. GOVERNMENT OF BANGLADESH Fund are allocated by the Government of Bangladesh to Bangladesh to cover GOB's share of eligible project expenditures , as specified in the Project Pro-forma and in the Annual Development Program 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 are as follows: (In Lakh Taka) Inception to 30t' For the year inception to 30 June, 2019 2019-2020 June, 2020 Disbursement by GOB 156,00.000 0 156,00.00 Less : Refund tc GOB 0 0 0 Total 156,00.00 00 156,00.00 2. LOAN FROM DEVELOPMENT PARTNER The (name of the Development Partner- International Development Association (IDA)) has provided funds to the project to cover it's share of eligible project expenditures. These funds, which must be repaid to (name lender/donor) after the conclusion of the project have been drawn by the project in accordance with the following withdrawal procedures. (in Lakh Taka) inception to 30 For the year Inception to 30 .1 June, 2019 2019-2020 June, 2020 Initial Deposit (Advance) 120,00.00 T00 120,00.00 OPA (Direct Payment) 0 0 0 RPA (SCE PrOCEdure) 1213,36.63. 213,94,08 1547,30.71 RPA (Non SE Procedure) 0 0 0 Total 1333,36.63 213,94.08 1667,30.71 3. OTHER RESOURCES Other resources consist of the following: Inception to 30h For the year inception to 30th June,2019 2019-2020 June,2020 Project Revenues 527.49 153.21 680.70 Exchange gainsflosses 0 0 0 Total 527.49 153.21 680.70 4. CASH The project maintains two bank account, an irnprest bank account, or revolving fund, which is kept at Sonal Bank to hold funds advanced by IDA and an operating accounting, wnich is kept at a Janata bank to hold funds advanced by GOB as well as funds transferred from the imprest bank account. Year end cash balances were as follows (In Lakh Taka) i Inception to 30th For the year inception to 30th June,2019 2019-2020 June,2020 Irnprest Acc un,16,27-97 16,86.66 16,8666 Operating Account (RPA 48,98.30 76,35.75 76,35.75 Operating Account (GOB) 56,94.60 32,21.75 32,21.75 Total 122,20.87 125,44.16 125,4416 rsed 4ossein Adt& Ac,,unt officer Audit &Acco AditDirecturatc SFre uA1agca & leac) And gombagica Db& AUDITORS REPORT ON SPECIAL ACCOUNT 1) We have audited Special Account Statement of Nuton Jibon Livelihood Improvement Project. (NJLIP), Dhaka for the year 2019-2020 financed by IDA under Financing Agreement No-5594 BD. 2) Our audit was carried out accordance with International Auditing Guidelines. Accordingly our audit included such review of systems of internal control, tests of the accounting records and supporting documentation, verification of account balances and other auditing procedures that we considered necessary under the circumstance. 3) The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above credit covenant through Sonali Bank Ltd. Lahnatia Branch, Dhaka operating Account No. STD-4416403000119 4) As per special account statement total Tk. 12,000.00 lakh was given to the mentioned project operating account by the World Bank during the year under audit. In our opinion the special account statement gives a fair view of the accounting activities for the year ended 30 June 2020 on the basis of cash deposit and withdrawals. Opinion Status: Unqualified. (Subodh Kumar Roy) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 8317190 CAUsers\fapad\Desktop\Final Report Team-7, 27,12.2020 - Copy\Final Report NJLIP-22.12,2020.doe -27- Audit Opinion on SoE 1) We have audited Statement of Expenditure (SoE) of Nuton Jibon Livelihood Improvement Project (NJLIP), Dhaka for the year 2019-2020 submited to the World Bank for the reimbursement of expenditure in accordance with the IDA Financing Agreement financed by IDA under financing Agreement No-5594 BD. 2) Our audit was concluded following International Standared of Auditing. Accordingly our audit included such review of systems of internal control, tests of the accounting records and supporting documentation. So far exists and adopting necessary auditing procedures that we considered essential under the circumstances. Withdrwals /SOE Particulars: Summary of withdrawal Applications/SOE particulars are shown in the enclosed Statement. In our opinion the Statement of Expenditure (SOE) to support the applications for credit disbursement for expenditure incurred for the purpose of the project specified in the particulars of the withdrawal applications. Opinion Status: Unqualified. (Subodh Kumar Roy) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 8317190 C7\Users\fapad\Desklop\Final Report Tear-7,27.1212020 - Copyfinal Report NJLIP-2212.2020.doc - 28 -