((_ .iir G'{ Government of NePal Ministry of Agriculture and Livestock Development NEPAI-,.PILOT PROGRAM FOR CLIMATE RESILIENCE (PPCR) Building Resilience to climate Related Hazards Project (BRCH) (IDA Grant-TF 013665-NEPI AUDITED FINANCIAL STATEMENT (FY 2076t77 (20r9t20) Agriculture Management Inforrnation System Component f): Submitted Bv Project Management Unit (PMU) PPCR/BRCH/AMIS HariharBhawanPulchowk Lalitpur, Nepal \ @Hrfi,ftrtfi,rl[imq Office of the r General Babar Ma@l; Date: 2 March, 2021 i}FTEiBRCRH/Ai'JIIS The Secretary Ministry of Finance ami q. . A..K..€......... Singh Durbar, Kathmandu # ,fn ed lsr l rC Report on the Financial Statements We have audited the accompanying project Financial Statement including Designated Account of the "Nepal Pilot Program for Climate Resilience: Building Resilience to Climate Related Ilazards Project, GRANT No : TF 013665-NEP", as of 15 July 2O2o (3lAshadh zOtt) and for the year then ended and a summary of accounting policies and other explanatory notes. Management's Responsibility for Financial Statements i, t Managenlent is responsible for the preparation and fair presentation of the Financial Statement of the project in accordance with the Government of ruepal (GON) accounting policies and relevant practices- The responsibilities include: designing, implementing and maintaining internal control relevant to preparation and fair presentation of project financial statement that are free from material misstatement, whether due to fraud and error. Auditor's Responsibility Our responsibility is to express an opinion on this Project's Financial Statement based on our audit. We conducted our audit in accordance with the INTOSAI (lnternational Organization of Supreme Audit lnstitution) Fundamental Auditing Principles. Those Principles require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. ln making those risk assessment, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 the entity's internal control. An audit also includes he Phone: 4258174,4266034,4255707,A.G. Far 977-l-4268309, Fax 977-1-4262798, Post Box 13328 rrr i h / @krfiqil?[,Il[iqq Office of the r General qERrE€[, ; Babar Mahgf, evaluating the appropriateness of accounting policies ubld&d the reasonableness of accounting estimates made by management as well as evaluation oflthe overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion Management letter highlighting areas for improving financial management inctuOing compliance with financial covenant is attached herewith. ln our opinion, the project Financial Statement including Statement of Designated Account, in all material respects, give a true and fair view of the financial position of the Nepal Pilot Program for Climate Resilience: Building Resilience to Climate Related Ilazards Project, GRANT No: TF 013665-NEP as of 15 luly2O2O (:f RsnaOn 2077), and of the results of its operation and its cash flows fgr the year then ended in accordance with GON accounting policies. We also report that the i funds proviided under IDA Grant No TF 013655 - NEP have been utilized for intended purposes. In addition, with respect to Statement of Expenditure (SOE), (") adequate supporting m documenlation has been maintained to support claims to donors for reimbursement of expenditure incurred; and (b) expenditure are eligible for financing under the above mentioned lD$1Grants. (Ram Maya Kunwar) Deputy Auditor General E ffiir:6*uftg u.s,ffid$t*s' ffien Phone: 4258174,4266034,4255707,A.G. Fax 977-l-4268309, Faxr 977-l-4262798, Post Box 13328 OJ o o o e 0) N c! v F. C? $ o r (o o o o o N o c! O {- t-^ o rr) o. 0) t O o rt @ o \ N r.- c.l co- co- ( o- =(J € s r... 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