• Financial Attest Audit Report on the Accounts of Sindh Public Sector Management Reforms Project (SPSMRP) Karachi World Bank-assisted, IDA Credit# 55840-PK Finance Department Government of Sindh For the Financial Year 2019-20 AUDITOR-GENERAL OF PAKISTAN TABLE OF CONTENTS Page No. List of Abbreviations I Preface II • PART-I Project Overview 02 Auditor's report to the Management (Audit Opinion) 03 Financial Statements 05-24 PART- II 25 MANAGEMENT LETTER 27 EXECUTIVE SUMMARY 29-30 1. Introduction 31-32 2. Audit Objectives 33 3. Audit Scope and Methodology 33 4. AUDIT FINDINGS AND RECOMMENDATIONS 34 4.1 Organization and Management 34-39 4.2 Financial Management 39-43 4.3 Procurement and Contract ~anagement 43-47 4.4 Monitoring and Evaluation 47-48 4.5 Asset Management 48-49 4.6 Compliance with Grant/Loan Covenants 49-51 4. 7 Overall Assessment 52 5. CONCLUSION 53 ACKNOWLEDGEMENT 54 ANNEXURES 55-58 Abbreviations and Acronyms AFS Annual Financial Statements AG Accountant General AGP Auditor General of Pakistan BOR Board of Revenue CPS Country Partnership Strategy DAO District Accounts Officer DLI Disbursement Linked Indicators EAD Economic Affair Division ERP Enterprise Resource Planning EEP Eligible Expenditure Programs EU European Union FD finance Department FO Field Officer FY Financial Year GOS Government of Sindh GRM Grievance Redress Mechanism ISSA! International Standards of Supreme Audit Institutions IT Information Technology IPSAS International Public-Sector Accounting Standards IUFRs Interim Unaudited Financial Reports IDA International Development Association M&EC Monitoring and Evaluation Consultants MIS Management Information System OFWM On Farm Water Management O&M Operation & Maintenance PD Project Director PSM Public Sector management PAD Project Appraisal Document PUMA Provincial Disaster Management Authority PIU Project Implementation Unit PSC Project Steering Committee PSIAC Project Supervision and Implementation Assistance Consultants PFM Public Financial Management PBB Performance Based Budgeting SPSMRP Sindh Public Sector Management Reforms Project SRB Sindh Revenue Board SSC Supply & Services Companies STS Sales Tax on Services SPPRA Sindh Public Procurement Regulation Authority TA Technical Assistance usu United State Dollar WB World Bank I PREFACE The Auditor General conducts audits subject to Article 169 and 170 of the Constitution of the Islamic Republic of Pakistan 1973, read with section 8 and 12 of the Auditor General's (Functions, Powers and Terms and Conditions of Service) Ordinance 2001. The Audit of Sindh Public Sector Management Reforms Project (SPSMRP), Karachi IDA Credit# 55840-PK was carried out accordingly. The Directorate General of Audit Sindh conducted audit of Sindh Public Sector Management Reforms Project (SPSMRP), Karachi IDA Credit# 55840-PK during September & October 2020 for the financial year 2019-20 with a view to reporting significant findings to the stakeholders. Audit examined the economy, efficiency, and effectiveness aspects ofSindh Public Sector Management Reform Project (SPSMRP), Karachi World Bank Assisted Project loan agreement IDA Credit # 55840-PK. In addition, Audit also assessed, on test check basis, whether the management complied with applicable laws, rules, and regulations in managing the Sindh Public Sector Management Reform Project (SPSMRP), Karachi. The Audit Report indicates specific actions that, if taken, will help the management to realize the objectives of the Sindh Public Sector Management Reform Project (SPSMRP), Karachi. The observations included in this report have been finalized in the light of discussions in the Exit Conference. The Report consists of two parts. Part-I contains Auditor's Report (Audit Opinion) and Financial Statements. Part-II contains Executive Summary, Management Letter, Audit Findings and recommendations. a) The Report has been prepared for submission to the International Development Association in terms of Loan Agreement IDA Credit# 55840-PK. Dated: I 12020 (Mia~) Place: Director General II PART-I I. PROJECT OVERVIEW 2. AUDITOR'S REPORT TO THE MANAGEMENT 3. FINANCIAL STATEMENTS PROJECT OVERVIEW Name of Project Sindh Public Sector Management Refonn Project (SPSMRP) Sponsoring Authority The World Bank (IDA)/Government ofSindh Executive Authority Government of Sindh Credit No IDA Credit# 5584-PK Project/Loan Amount $ 50 Million Date of Commencement 11 th March, 2015 Actual Date of Commencement l l' h March, 2015 Date of Completion (PAD) 31 ' 1 August, 2020 Loan Closing Date 28'1, February, 2021 Date of Extension 23 th February, 2021 Disbursement Status in FY 2019-20 Component-I in Provincial Account-I US$ 8.4 Million (PKR 1,299 Million) TA Fund Received PKR 290 Million (ERU Component) Loan Status in FY 2019-20 for Component-II (TA + 375 Million (SRB Component) Component) Expenditures Incurred PKR l 32 Million ERU+93 Million SRB Total Expenditure PKR 225 Million (US$ 1.33 Million) Eligible Expenditure Program (EEP) till FY 2019- World Bank Share: US$ 37.9 Million (PKR 4,525 Million) 20 in Component - l GoS Shares: US$ 138.6 Million (PKR 23,388 Million) Total: US$ 176.5 Million (PKR 29,796 Million) 2 AUDITOR'S REPORT TO THE MANAGEMENT We have audited the financial statements of Sindh Public Sector Management Reforms Project, Karachi that comprises of Statement of Receipts and Payments, Statement of Comparison of Budget and Actual together with the notes forming part thereof for the year ended 30 th June, 2020. These financial statements are the responsibility of the Government. My responsibility is to express an opinion on these financial statements based on my audit in Pakistan read with Section 7 of the Auditor-General's (Functions, Powers and Terms and Conditions of Service) Ordinance 200 I. I conducted my audit in accordance with the auditing standards issued by the International Organization of Supreme Audit Institutions and by my Department. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Government, as well as evaluating the overall financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion: a) The financial statements present fairly, in all material respects, the financial position of the Sindh Public Sector Management Reforms Project, Karachi as on 30th June, 2020 and the results of its operations, its cash flows and its expenditure and receipts by appropriation for the year then ended in accordance with the stated accounting policies of the Government of Pakistan. b) The expenditure has been incurred in accordance with the requirements of legal agreements. ( (Mi~o) D ircctor General Dated: - -2020 Place: Karachi 3 .. Government of Sindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No. 55840-PK. FINANCIAL STATEMENTS OFTHE SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT (SPSMRP) 1• July 2019 to 30• June 2020 \SAFI/I. />.A WI ,tormUnit Hl J,irc.,or. Econo1mt F,nance Oepartml!:nl r .. _., ,,, 1".'Pnl ol Sint\h Pagelof18 . ' Government of Sindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No, 55840-PK, PROJECT OVERVIEW Name of Project Sindh Public Sector Management Refonn Project (SPSMRP) Sponsoring Authority The World Bank (IDA)/Govemment of Sindh Executive Authority Government ofSindh CredjtNo IDA Credit# 5584-PK Project/Loan Amount $ 50 Million Date of Commencement 11 th March, 2015 Actual Date of Commencement 11 th March, 2015 Date of Completion (PAD) 31" August, 2020 Loan Closing Date 28 th February,2021 Disbursement Status in FY 2019-20 Component-I in Provincial Account-I US$ 8.4 Million (PKR 1,299 Million) Loan Status in FY 2019-20 for TA Fund Received PKR 290 Million (ERU Component) Component-TI (TA Component) + 375 Million (SRB Component) Expenditures Incurred PKR 132 Million ERU+93 Million SRB Total Expenditure PKR 225 Million (US$ 1.33 Million) Eligible Expenditure Program (EEP) till World Bank Share: US$ 37.9 Million (PKR 4,525 Million) FY 2019-20 in Component-I ;;GoS Shares: US$ 138,6 Million (PKR 23,388 Million) Total: US$ t 76,5 Million (PKR 29,796 Million) •us, mt,;, of J""' 30", 2020 Le, PK:::::·AA~SR,AN), ~ .. !'ctor. Economic Refarm Unit Page2ofl8 · Finance Oepanment r.~v .. rnrnPnl of Slndh Government of Sindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government ofSindh IDA Credit No. 55840-PK. Statement of Cash Receiots & Pavments for the Period Ended on 30th June' 2020. PKR (In Millions) 2019-20 . Payment PKR Receipts/Payments (In Millions) Cumulative by Third- Retroactive Controlled by 2018-19 Party Financing Government Accounts RECEIPTS Notes Government ofSindh 14 5,248 . . 5,605 10,853 IDA-Eligible Expenditure Program . . 15 1,299 447 17,46 Component-I in Provincial Account-I Total Receipts 6,547 . . I 6,052 12,599 PAYMENTS Eligible Expenditure Provram Employee Related . . 16 6,547 6,052 12,599 Exuenditure Rennrted Total Payments 6,547 . . 6,052 12,599 Amount of TA Brought forward from previous 391.1 . . 296 687.1 vear Received in TA During 17 . 665 185 850 the Year* Expenditures During the . . ERU 18 ERU SRB ERU SRB SRB Period (ERU+SRB) 132 93 77 12.9 209 105.9 Remaining unutilized amount Surrendered 831.1 . . 391.1 1,222.2 • (ERU+SRB) TA was reeeived during the year by the ERU & Sim, ~ - 1 ,je t for the Period Ended on 3011 ' June' 2020. Sfatement of Comparison of Budget & Actual Expenditure by /; . 1S1 ,, Page 5 of18 Government ofSindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No. 55840-PK. 2.1 Certification by Project Management Funds against Credit No. 55840-PK have been utilized for the project purposes as defined in the financing agreement. 3. STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with the New Accounting Model (NAM). In December 2000, Auditor General of Pakistan prescribed NAM with the approval of the President of Pakistan under Article 170 of the Constitution of Islamic Republic of Pakistan and the implementation of NAM is an ongoing process. 4. ACCOUNTING CONVENTION AND BASIS OF PREPARATION These financial statements have been prepared under the cash basis of accounting which recognizes transactions and events only when cash is received or paid by the entity. These financial statements have been prepared as per the requirements of NAM that supports international best practices. The statement of receipts and payments, statements of comparison of budget and actual amounts by Object and notes foi-ming parts thereof have been prepared on the format of Cash Basis IPSAS - Financial Reporting under the Cash Basis of Accounting. 5. REPORTING AND BUDGET PERIOD The reporting period for this financial statement is from pt July 2019 to 30th June 2020 and budget period of these financial statements is (from pt July 2019 to 30 th June 2020). The project and financing agreements were signed on 11 th March 2015. 6. REPORTING CURRENCY The reporting currency of these financial statements is Pakistani Rupees (PKR). 7. SIGNIFICANT ACCOUNTING POLICIES. The Principal accounting policies applied in preparation o reject financial statement are set out below. These accounting policies are consistently appli d to periods presented. 1. Revenue/Receipt recognition \SAFI.\ AAIAI ISRAN) Page6of18 _ -•-- c~,_,.,,mirRdormUn11 Government of Sindh Finance Department (Economic Refonn Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government ofSindh IDA Credit No. 55840-PK. Revenue is recognized on the date of receipt of money by the bank or clearance of cheque. Revenue is recognized on a gross basis and any related costs are recorded separately. Receipts representing recovery of any previous overpayment are adjusted against relevant expenditure, ifit occurs in the same financial year. ii. Recognition of expenditure Expenditure is recognized on the date when payment is made or cheque is issued. Financial year to which the payments pertain is determined by the date on which a cheque or payment advice is issued. Policies for recognition of expenditure are as follows: a. Payments made through cheque Expenditure is recognized on the date the cheque is issued. b. Inter government transfers Expenditure is recognized on the date the transfer is made by the transferor. c. Payments directly in bank accounts A direct payment into bank account, expenditure is recognized on the date the payment advice is issued to the bank. d. Direct payments by State Bank of Pakistan (SBP) Repayment ofloans and other direct payments by the SBP, expenditure is recognized on the date State Bank of Pakistan advises the relevant accounting office. e. Imprest payments Expenditure is recognized when the required claim vouchers are submitted and imprest account is reimbursed. 111. Foreign currency Transactions in foreign currencies are recorded in the books at the rates of exchange prevailing on the date of transaction. Exchange differences arising on settlement of these transactions are recognized in the Statement of Receipts and Payments, but are not disclosed separately. iv. Cash and cash equivalents his financing agreement, the Government ofSindh Account No. 1, kistan is used for the Disbursement of Loan. The cash and cash Page7ofl8 • Government ofSindh Finance Department (Economic Refonn Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh !DA Credit No. 55840-PK. equivalents represent advances of Technical Assistance by IDA to the borrower and at the end of financial year the advance which remains un-documented/not adjusted. v. Assets . Assets are future economic benefits controlled by the government as a result of past transactions or other past events. Assets are recorded at cost and currently no depreciation is charged. v1. Payment by third Party The Government also benefits from goods and services purchased on its behalf as a result of cash payments made by the third parties during the period by way of loans and contributions, in the shape of grants and aid. The payments made by the third parties do not constitute cash receipts or payments controlled by the Government as defined in the Cash Basis IPSAS - Financial Reporting under the Cash Basis of Accounting but do benefit the Government, as the Government does not receive cash (including cash equivalents) directly from, or gain control of the bank accounts or similar facility established for its benefit by, the third parties. Payments by third parties, if any, are disclosed in the payments by third parties column on the face of statement of cash receipts and payments and notes to the financial statements. 8. PROJECT OBJECTIVE AND DESCRIPTIONS The objective of the Project is to strengthen public sector perfonnance in the province of Sindh through improved revenue generation and expenditure management. The Project Objectives consist of the following: Support to the implementation of reform activities included in the Sindh Tax Revenue Mobilization Reform Plan, including: (a) establishing a new Tax Reform Unit in FD; (b) supporting TRU to conduct high quality analytical studies to support the decision-making process associated with GoS tax policy and administrative reforms; (c) reviewing critical aspects of STS administration with the potential to enable procedure hannonization with the other two revenue administrations in Sindh; (d) establishing a state-of-the-art training facility in sales tax administration and support other pre-and in-service tra· ing activities within tax agencies; (e) conducting initial studies to identify factors which n be employed to increase tax morale in the Province, which will serve as input to prepare 1'.rf!cale taxpayer education JJ_ Page8of18 Government of Sindh Finance Department (Economic Reform Unit) SJNDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government ofSindh IDA Credit No. 55840,PK. programs; (f) conducting GIS and satellite imaging analysis for property tax and other tax reforms; (g) conducting regular tax payer communication, education and facilitation activities; and (h) supporting other efforts to implement the Sindh Tax Reform plan within Board of Revenue, Excise and Taxation Department and other tax agencies including but not limited to Urban Immovable Property Tax, Stamp Act, document/property registration and related reforms. Support to the implementation of the Sindh Public Financial Management Strategy, including: (a) supporting for enhancing the usage of the FMIS in Finance, P&DD and line departments; (b) improving cash management mechanisms including support to commitment accounting; (c) organizing trainings on the usage ofFMIS reports in Finance, P&DD and line departments; (d) supporting pre-budget workshops and seminars (e) supporting debt management; (f) asset recording, internal control, and expenditure commitment control; (g) payroll and pension audits; (h) strengthening public accounts committees; and (i) strengthening citizen engagement and information disclosure practices. • Support to implementation of procurement reforms, including (a) developing and implementing the e-procurement and MIS plans by identifying required changes for the new technology to be effective; (b) partnering with higher education institutions and specialized training institutions to develop training modules which cover the full range of courses that are required for building procurement skills of procurement officials and; (c) supporting SPPRA in developing their own capacity and strengthening their regulatory framework (implementing regulations, contract management guideline, etc). • Support to the management of the development portfolio, including: (a) supporting capacity building activities of the Monitoring and Evaluation Cell/Development Delivery Unit within the Planning and Development Department; (b) developing systems of photo-enforced monitoring; (c) conducting satellite imaging and other GIS analysis; including creation of related infrastructure, to deepen poverty analysis for improved targeting/pro-poor development; and (d) supporting proactive beneficiary feedback of government development schemes and other daY, a-day service delivery areas. Page 9 of 18 Government of Sindh Finance Department (Economic Refonn Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government ofSindh IDA Credit No. 55840-PK. Project Components The Project consists of two complementary components: (i) results-based financing based on DLls to provide an incentive for achieving eligible public sector management ("PSM") refonns (US$ 40 million), and (ii) technical assistance to support activities for achieving DLis (US$ 10 million).Results-based financing will disburse against agreed eligible expenditure program (EEPs) based on DLis in four refonn areas: increasing tax revenue mobilization; enhancing performance of public financial management system; strengthening public procurement perfonnance, and improving management of the development portfolio. • Component 1: Results-based financing to provide an incentive for achieving eligible PSM _reforms (US$ 40 million). Under the results-based component, Credit disbursement will reimburse expenditures incurred by the Government of Sindh in selected key budget line items referred to as EEPs. The event and amount of Project disbursements will be contingent on satisfactory achievement of disbursement linked indicators (DLis). EEPs include pay and allowances for departments of Finance, Excise and Taxation, Planning and Development, the Board of Revenue, SPPRA, and SRB since the Project interventions will mainly focus on these organizations. The reimbursement under Component-I received from the World Bank are made in the Provincial Account-I, maintained in the State Bank of Pakistan. • Component 2: Technical Assistance (TA) to support capacity building and institutional strengthening associated with achievement of eligible public sector management (PSM) reforms, mitigating implementation challenges and promote sustainability of project outcomes (US$ IO million). TA will be used to support all four eligible PSM reform areas: tax collection, PFM, procurement, and development monitoring. The technical assistance will consist of technical consultancies and capacity building activities, including training, seminars, conference participation, equipment purchase, and other activities. Efforts will b made to utilize an inclusive approach to capac.ity building and institutional strengt ing to ensure strong female representation and a pro-poor focus. (SAFIA A Ec0no1 01rtctc.1. Finance Otpon:menl Gavnnmenl ,;.f S;nfth Pagel0of18 Government of Sindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh !DA Credit No. 55840-PK. 9. DISBURSEMENT LINK INDICATORS (DLls) S.No Indicator Name Description ( Indicators Definition) Approval and Initial implementation of Sindh I. Tax Revenue Measures approval and implementation ofSTRMP. Mobilization Reform Plan Enhanced SRB human Measures SRB human resources capacity development 2. resources capacity for progress. administration Measures transparency of taxpayer obligations, effectiveness of systems for taxpayer registration, tax assessment, and Increased automation of collection of tax payments through increased automation of 3. SRB several key systems and in particular the number of notices sent through automated system. Measures use of risk targeted auditing of taxpayers as a key Risk based audits of activity to improve compliance and deter tax evasion and also 4. taxpayers implemented its success with the hit rate. Measures the degree of implementation of internal audit Establishment of internal function to be established in GoS based on a plan to be 5. adopted for staffing, mandate, and audit plans.to focus on audit systemic issues. Transparency in budget Measures transparency and legislative oversight through the 6. formulation, allocation budget cycle. and execution Procurement Measures the increased capacity of the procurement staff. 7. professionals certified Quarterly departmental development plan M:,:ronitoring capacity of P&DD with focus on the 8. Ban ortfolio. monitoring reports prepared and published. ✓ ,1~~1~.l"r;,~~~~,;~Jit '" ~in.:ric.e- oep;irtment ,- c,,•unrr,HII ol ~lntlh Page 11 ofts Government ofSindh Finance Department (Economic Refonn Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government ofSindh IDA Credit No. 55840-PK. 10. PDO Level Results Indicators Objective PDO Indicator Measures the overall performance of the SaJes Tax on Services (STS) Improved collection Collection. STS to be measured in real terms, as three and a half percent ofSales Tax on annual collection growth minus inflation. Performance is cumulative, and Services over or under-performance adjustable vis-0.-vis preceding or succeeding years. The variance between actual and budgeted expenditure composition Improved credibility of during the last three years, excluding contingers; for the budget execution preceding fiscal year. A I .1. ·•\R 1s1t-'Nl \SA ~ .c Reform Unit . er. E onom1 Page 12 of18 Government of Sindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No. 55840-PK. 11. ELIGIBLE EXPENDITURE PROGRAMS The details of Eligible Expenditure Programs (EEPs) are as follow: Department Budget Grant Object Code & Function Function Code No. Description Description Administration of Financial Affairs, Tax Management Finance 011204 AO! (Customs, (including 011205 Employees Income Tax, Sindh Revenue SC2! !06 011206 Related Expenses Excise), Board) 011207 _ Accounting Services, Auditing Services Planning & 015201 Planning, AO! Statistics, Development 015301 SC21110 Employees Administration (including 011104 Related Expenses SPPRA) 017120 Other Tax Management AO! (Customs, Excise & Employees Taxation SC21113 011205 Income Tax, Related Expenses Excise) AO! Tax Management Board of Employees (Custom, Income Revenue SC21114 011205 Related Expenses Tax, Excise) 12. DISBURSEMENT CONDITIONS AND SCHEDULE The disbursements for Component I of the Project are conditional on the achievement of 8 Disbursement Linked Indicators (DLis) related to Finance Department (including Sindh Revenue Board Planning & Development Department (including Sindh Public Procurement Regulat Authority) , Excise, Taxation & Narcotics Control In each cycle, the amount eligible for disbursement will Page 13 of 18 Government of Sindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No. 55840-PK. be the product of the total number of achieved DLis and the unit DLI price. Where achievement of a DLI cannot be certified, an amount equivalent to the unit DLI price will be withheld. This amount will be paid at any later date when such achievement can be verified. In case of partially met DLI, a proportion of that DLI would be considered met and remaining would be carried forward. The reimbursement depends on the two factors, first the achievement ofDLI and second is the EEPs. 13. SPSMRP COST AND FINANCING/LOAN BY IDA AND EUROPEAN COMMISSION US$ nu Million\ Financial Components Percentage(%) . Sindh Government 220 78% IDA 50 18% European Commission (Technical Grant)* 12 4% Total 282 100% . "'European Comm1ss10n (EC) 1s a non•monetary techmcal grant and does not mvolve any financial transfers. US$ (In Million) Allocation of Loan Amount (Category) Amount of Loan Percentage (%) Eligible Expenditure Programs $40 80% Technical Assistance $10 20% /' Total $50 IOOo/1 I II . I . ., 1S \Si,fl.~ A,,, , ... _,•Jr n\ Unit R.AN\ Oir-.c\,_11 Leo . fir1.;:1u oc:rart~> 0,'. , , ,11mt:l"\I ci' ·:,' -,,; ;, Page 14 of18 • i Government of Sindh .I Finance Department (Economic Refonn Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No. 55840-PK. 13.1 DLICostperYear (US$ in Millions) FY FY FY FY FY S.No DLI 2014- 2015- 2016- 2017- 2018- TOTAL 15 16 17 18 19 Approval and initial implementation of I. Sindh Tax Revenue Mobilization 10 10 Reform Plan Enhanced SRB human resources 2. 2 0.5 0 I 1.5 5 capacity for administration 3. Increased automation of SRB 2 0.5 I 0.5 2 6 Risk based audits of taxpayers 4. 1 0 0 I I 3 implemented s. *Establishment of Internal Audit 2 I 0 O· 0 3 Transparency in budget formulation, 6. 1 I 0.5 I 2 5.5 allocation and execution. 7. Procurement professional certified 1 I 0 I 1 4 Quarterly departmental development 8. plan monitoring reports prepared and I 0.5 0.25 0.25 1.5 3.5 published TOTAL 20 4.5 1.75 4.75 9 40 * Establishment of Internal Audit it is no more a DU after June, 2018. It is necessary to mention here because it was part ofDLI pr viously as indicated in the DLI price table. Pagc15ofl8 c,,s.1sA. SRAN) _,, Ccono 1c Rtform Unit Government ofSindh Finance Department (Economic Refonn Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No. 55840-PK. 14.RECEIPT The amount of financing as the GoS has arrived at during the current financial year ended June 30th 2020 is as follows: 2019-20 2018-19 Cumulative PKR (In Millions) PKR (In Millions) PKR (In Millions) Financed by World 1,299 447 Bank 1,746 Financed by 5,248 5,605 Government of 10,651 Sindh Total Financing 6,547 6,052 12,397 14.I The share of Government ofSindh is arrived at after summing all the expenditure incurred and then deducting from the funds received from IDA. 142 TA Financing was received from IDA during the reporting financial year of Rs. 290,052, 120/- to ERV. 15. WITHDRAWAL SCHEDULE OF IDA component 1 ( f;,l...t) ~--· .,,_ L ·,'.) ,-v1 ,"-'r... ,-, Applied Sanctioned Withdrawal Application Amount Amount Amount Amount in Application Date Date Status Type in US$ inPKR in US$ PKR No. Amount in Millions Reimburseme 16° JOlh SPSMRP-11 nt of eligible January 8.42 1,29/ .I-February, 8.42 1,299 Paid expenditure 2020 2020 Total I II 1,299 Paid J~ Page 16 of18 ;;-; ISf\AN I Government of Sindh I Finance Department (Economic Refonn Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government ofSindh IDA Credit No. 55840-PK. 16. Eligible Expenditure Program Details Amount in Millions Particulars Actual Exnenditures Finance (including SRB) 1,700 Planning & Development (including SPPRA) 774 Excise & Taxation 1,659 Board of Revenue 2,414 Total 6,547 17. TA Financing was received from IDA during the reporting financial year ofPKR. 290,052,120 to ERU and PKR 375,454,476 to SRB. 18. Expenditures under TA Component Expenditures Incurred By ERU, FD Amount in Rupees Amount in Rupees Year 2019-2020 2018-2019 Salaries 30,624,620 11,805,316 Consultancies 51,303,973 55,922,806 Training 12,486,974 4,968,562 Goods 35,559,214 3,623,277 Reimbursement 2,725,331 779,742, Sub Total I 132,700,112 77099,703 I ? i:..P. ~.~ .1c1L AN\ ' Page 17 of18 Government ofSindh Finance Department (Economic Reform Unit) SINDH PUBLIC SECTOR MANAGEMENT REFORM PROJECT Finance Department, Government of Sindh IDA Credit No. 55840-PK. 18. Expenditures under TA Component ofSRB Amount in Ruoees Amount in Ruoees Year 2019-20 2018-2019 Salaries/Consultancy 18,232,560 9,809,677 Traininl!/Capacity Building 15,273,656 5!0,118 Goods 59,636,!04 2,600,000 Sub Total 93,141,320 12,919,795 19. EXPENDITURES TRACKING AND MONITORING The expenditure shall be tracked and monitored by the requiring the stakeholders to send periodic reports. Such information shall be incorporated and updated in the project plan~ and in the bi~annual Interim Financial Reports (IFRs) for proper recording and audit. 20. AUTHORIZATION FOR ISSUE These financial statements have been authorized for issue. 21. GENERAL (i) Level of Precision Figures in these financial statements have been rounded off to then 11lions of Rupees, unless otherwise stated. (Safia Aamir lsran) Director Economic Reform Unit Finance Department Government ofSindh (SAFIA AAMIR ISRAN) Dnecte,,, Economic Reform Unit f irianc~ Department Page 18 of 18 r.1 11,-rnmrnt uf s:n:!:h