Auditor's Report THE CERTIFICATE AND REPORT OF THE COMPTROLLER AND AUDITOR GENERAL I. Certification We certify that on behalf of the Comptroller and Auditor General of Bangladesh we have audited the accompanying Financial Statement of the "Strengthening Public Financial Management Program to Enable Service Delivery" (SPFMS), financed by IDA Credit No. 6368-BD for the year ended on June 30, 2020. II. Respective Responsibilities of the Responsible Party and Auditor National Program Director (Responsible Party) is responsible for the preparation of the Financial Statements for being satisfied that they give a true and fair view. Our responsibility is to audit, certify and express an opinion on the Financial Statements based on our audit findings with a special attention towards material misstatements due to fraud. III. Audit Standards followed We have conducted my audit in accordance with Government Auditing Standards of Bangladesh (GASB), which are based on ISSAI-100, 200, 300, 400. These standards require that we plan and perform audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement. IV. Scope of the audit of the financial statements An audit includes examining, on a test basis, evidences supporting the amounts and disclosures in the Financial Statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall Financial Statements presentation. We believe that our audit provides a reasonable basis for our opinion on the Financial Statements for the year 2018-19 and 2019-20. V. Opinion on financial statements In our opinion: * the financial statements give a true and fair view of the financial position of "Strengthening Public Financial Management Program to Enable Service Delivery" (SPFMS) as at the end of the 30 June 2020. * the financial statements of the SPFMS Program have been properly prepared in accordance with applicable financial reporting framework prescribed by the Comptroller and Auditor General of Bangladesh subject to the audit observations raised in the management letter for the period. VI. Emphasis of Matter Allocation of fund between IDA and GOB We draw attention to Note-01 to the Financial Statements that there is a significant amount of administrative costs incurred from GOB fund amounting to Tk. 32,04,40,760.00 (Thirty Two Crore Four Lac Forty Thousand Seven Hundred and Sixty taka) recorded in the Financial Statement has not been specifically segregated to the program costs by dint of any office order associated with GOB budgeted amount for each financial year. To avoid the double counting of the expenditure recorded against the program in the Ministry's Financial Statements (Appropriation Account) such a clear notification/circular/office order is necessary. Our opinion is not qualified in respect of this matter. VII. Opinion Status: Unmodified. VIII. Basis of opinion We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. (Md. Nurul Islam) Director General Phone: 8392617 Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS) Project Financial Statement 30th June, 2020 (Figure in Taka) Cumulative Cumulative Resources Notes Prior Current Period Current Period Period Government of Bangladesh I - 402927890 402927890 Loan from Development Partner 2 - 418560000 418560000 Other resources 3 - - - Cash opening balance 4 - - - Total Resources 821487890 821487890 Cumulati IDA GoB Total Cumulative Expenditure and Cash Notes ve Prior Current Current (IDA+GoB) Current Period Period Period Period 01. Basic pay (Officer) (3111101) 135595090 135595090 135595090 02. Basic pay (Employee) (3111201) 52824630 52824630 52824630 03. Conveyance allowance (3111302) 892650 892650 892650 04. Education allowance (3111306) 2227820 2227820 2227820 05. Housing rent allowance (3111310) 64915220 64915220 64915220 06. Medical allowance (3111311) 9119610 9119610 9119610 07. Mobile/cellphone allowance (3111312) 849550 849550 849550 08. Residential telephone encashment 2072340 2072340 2072340 allowance (3111313) 09.Tiffin allowance (3111314) 607330 607330 607330 10. Washing allowance (3111316) 100920 100920 100920 11. Festival allowance (3111325) 27996610 27996610 27996610 12. Honorarium allowance (3111332) 20494690 20494690 20494690 13. Bangla new year allowance 2744300 2744300 2744300 (3111335) 14HonorariumAllowance(3111332) 11248755 11248755 11248755 15 Entertainment expenses (3211106) 507326 507326 507326 16Transporthiring (3211107) 5095927 5095927 5095927 17 Seminar/Conference Expenses 157155 157155 157155 (3211111) 18 Internet/Fax/Telex (3211117) 4600 4600 4600 19Telephone (32111120) 4000 4000 4000 20Advertising Expenses (3211125) 1136413 1136413 1136413 21 Books & periodicals (3211127) 31191 31191 31191 22 Publications (3211128) 25000 25000 25000 23 Outsourcing (3211131) 3727551 3727551 3727551 24 Labor (irregular) wages (3211134) 2000 2000 2000 25Training(3231301) 28287172 28287172 28287172 26 Computer consumables (3255101) 96926 96926 96926 275tampsandseals(3255104) 7548 7548 7548 28 Otherstationery(3255105) 392723 392723 392723 29 Consultancy (3257101) 78241783 78241783 78241783 30 Honorarium (3257206) 2258565 2258565 2258565 31 Sanitation & Water Supply (3258115) 127841 127841 127841 32 Interior Decoration (3258141) 6292415 6292415 6292415 33 Computers and accessories (4112202) 16361014 16361014 16361014 @rman_apad A- 1- Cumulati IDA GoB Total Cumulative Expenditure and Cash Notes ve Prior Current Current (IDA+GoB) Current Period Period Period Period 34 Telecommunication equipment's 813929 813929 813929 (4112204) 35 OFFice equipment (4112310) 564260 564260 564260 36 Furniture (4112314) _ 5662850 5662850 5662850 Total Expenditure 161046944 320440760 481487704 481487704 Cash Closing Balance Imprest Account - - - Operating Account (RPA) Operating Account (GOB) Total Expenditure and Cash The accompanying notes are an integral par of this financial statement @rmanJapad -2- Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS) NOTES TO FINANCIAL STATEMENT 30t" June, 2020 GOVERNMENT OF BANGLADESH: Fund are allocated by the Government of Bangladesh to cover GOB's share of eligible Program expenditures, as specified in the Program Proforma and in the 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 are as follows (In Taka) Inception to 30th For the year Inception to 30th June2029 2019-2020 June2020 Disbursement by GOB 402927890 402927890 Less: Refund to GOB - Total: 402927890 402927890 2. LOAN/GRANT FROM DEVELOPMENT PARTNER: Inception to 30th For the year Inception to 30th June 2019 2019-2020 June 2020 Initial Deposit (Advance) - - DPA ( Direct Payment ) 418560000 167372 400 BDT RPA ( SOE Procedure) RPA (Non SOE Procedure) . Others - - TOW 418560000 1673729749.00 BDT Total41856000Cor All Scheniel 3. OTHER RESOURCES: Other resources consist of the following: Inception to 30th For the year Inception to 30th June 2019 2019-2020 June 2020 Project Revenues - Exchange gains/ losses Total-- 4. CASH: Inception to 30t For the year Inception to 30t1 June2019 2019-2020 June2020 Imprest Account - Operating Account (RPA) Operating Account (GOB) Total -N h ~7~P V l \ ---. j1~~~ *. I. ( ~ F~A1~ (JFk-TYiiFi-- Ij Jf I ii -ql-'vl v"' i6 - 3 . *(~hT~t~I 9t~T~Pi (~~1~o~ii) Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS) NOTES TO Unspent Fund STATEMENT 30th June, 2020 The Total SPFMS Expenditures are estimated at US$170 million, out of which IDA will finance US$100 million. The PforR will be implemented over five years. Fiscal year 2019-20 IDA Disbursed USD 19807500.00 BDT TK 1673729749.00 for all Scheme of SPFM Program. Which BDT TK 161172944.00 incurred during this financial year. Unutilized 1673729749.00 - 161172944.00 = 1512556805.00 will automatically added with next IDA Disbursement amount and next year budget amount will be allocated from rest of IDA Fund accordingly. IDA Disbursement up to Expenses up to Unspent up to 30th June 2020 30th June 2020 30th June 2020 USD $ 19807500.00 $ 1907376.67 $ 17900123.32 BDT 1673729749.00 161172944.00 1512556805.00 (For All Scheme) (For All Scheme) (For All Scheme) * USD Rate: 84.50 r Ia f -' 0 Fumrnanjfapad-4