3fVa'Aa2T, taZ16c - 500 004. OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT) ANDHRA PRADESH, HYDERABAD - 500 004. Lr. No.PAG(Audit)/AP/GS/EAP&SAR/2017-18/of,9 22-. 01.2018 To The Chief Engineer (R&B), CRN & Managing Director, APRDC, A-Block, 5h Floor, Anjaneya Towers, Ibrahimpatnam, Vijayawada - 521456 Andhra Pradesh Sir, Sub: Issue of Audit Certificate for the year 2016-17 in respect of Andhra Pradesh Road Sector Project (APRSP) (Loan/Credit No,7792-IN) I am to forward the reports of Comptroller and Auditor General of India for the year 2016-17 in respect of World Bank assisted " Andhra Pradesh Road Sector Project (APRSP), Vijayawada, (Loan/Credit No.7792-IN) along with enclosures viz., 1. Statement of Admittance (Annexure-i) 2. Statement showing details of disallowances made from expenditure incurred ( Annexure-II) 3. Statement of Previous Disallowances allowed in the current year (Annexure-III) Receipt of the above mentioned documents may please be acknowledged. Encl: As above ours faithfully, Dy. Accountant General/GSS Phone No. : 040-23211223 (Office) E-mail: agauandhrapradesh2@cag.gov.in Fax No. 040-23210125 Inspection Report of Audit Observations/Disallowances on Certification Audit of Externally Aided Project of Andhra Pradesh Road Sector Project (APRSP) for the year 2016-17 (Dates of Audit : 06.11.2017 to 21.12.2017) Audit observations/disallowances in respect of APRSP in the office of Chief Engineer and Managing Director, Project Monitoring Unit, Vijayawada for the year 2016-17 L Non-submission of Utilization Certificates for the amount advanced to Social Forestry, Kadapa Rs.32,10,000/- As per Para 3.17.21 of the Manual of Standing Orders (MSO) (Audit), advances given are reimbursable when the advances are totally adjusted. However, on scrutiny of vouchers pertaining to the year 2016-17 audit noticed that an amount of Rs.35,00,000/- (A3 component) was paid vide PAO token No.11239 dated 22-10-2016 towards advance payment for raising and maintenance of Avenue Plantation of Mydukuru-Jammalamadugu road from KM 153/100 to 171/100(MJ-03) and Mydukuru-Jammalamadugu road from KM 177/400 to 194/400(MJ-04). Audit noticed that Utilization certificates for an amount of Rs.2190,000/- only was furnished by the DFO, SF, Kadapa so far. When this was brought to notice. the Department replied that the UCs would be submitted after the same were received from the DFO, Social Forestry, Kadapa. Hence the amount of Rs. 32,10,000/- is disallowed in view of the pendency of UCs. II. Unadjusted Secured Advance disallowed- Rs.59,63,832 As per Para 3.17.21 of the Manual of Standing Orders (MSO) (Audit). advances given are reimbursable when the advances are totally adjusted. Scrutiny of the [PC 18 Dated 8h March 2017 of the work: 'Widening and Strengthening of Kurnool- Devarakonda Road-l from KM 4/400 to 65/300 in Kurnool District' revealed that secured advance for material was paid to the agency in the bill for an amount of Rs.59, 63.832 in March 2017. Since the amount was unadjusted during the financial year of 2016-17 the amount of Rs. 59,63,832/- is disallowed for reimbursement. IIl. Unadjusted Secured Advance disallowed- Rs.55,02,277 As per Para 3.17.21 of the Manual of Standing Orders (MSO) (Audit), advances given are reimbursable when the advances are totally adjusted. Scrutiny of the IPC-29 Dated 23-03-2017 of the work: 'Widening and Strengthening of Pedana - Nuzivid - Vissannapeta Road from KM 62/250 to 95/460 in Krishna District' revealed that secured advance for material was paid to the agency in the bill for an amount of Rs.55,02,277/- in March 2017 which was unadjusted. Since this amount of Rs. 55,02,277/- was unadjusted durIng the financial year of 2016-17, the same is disallowed for reimbursement. Deputy Ar&ountant General /GSS INDIAN AUDIT AND ACCOUNTS DEPARTMENT O/o The PRL. ACCOUNTANT GENERAL (AUDIT) ANDHRA PRADESH STATE HYDERABAD 500 004 To The Chief Engineer (R&B) CRN & Managing Director, APRDC, A-Block, 5" Floor, Anjaneya Towers, Ibrahimpatnam, Vijayawada - 521456 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 31st March 2017. 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 Proj ect (APSRP) for the year ended 31s March 2017 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 of expenditure incurred; and (b) except for ineligible expenditure of Rs. 1,46,76,109/- as detailed in the audit observations, appended to this audit report for the year 2016-17, the 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. DEPUTY ACCOVNTANT GENERAL (GSS) 3ii"v w"v]. ?CWIWcf - 500 004. OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT) ANDHRA PRADESH, HYDERABAD - 500 004. AUDIT CERTIFICATE The Expenditure Statement/Financial Statement relating to Andhra Pradesh Road Sector Project (A-PRSP), (Loan/Credit No.7792-IN) for the year ended 31' March 2017 attached hereto have been audited in accordance with the regulations and standards of audit of the Comptroller and Auditor General of India and accordingly included such 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.127,31,71,460/-) 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 obtained 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 2016-17. 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 beinL, laid before Parliament ,State LeLislature. R.SRIDHAR Deputy Accountant General/GSS Phone No. : 040-23211223 (Office) E-mail: agauandhrapradesh2@cag.gov in Fax No. 040-23210125 ANNEXURE II STATEMENT SHOWING THE DETAILS OF DISALLOWANCES MADE FROM THE EXPENDIUTRE INCURRED DURING THE YEAR 2016-17 IN RESPECT OF WORLD BANK ASSISTED ANDHRA PRADESH ROAD SECTOR PROJIECT (GRANT 7792-IN) SI.No. Component Unit Reasons for disallowance AE no. Amount I Al PMU, Vijayawada Unadjusted material advance (KD road-Il - 5 5963832 IPC 19) 2 Al PMU, Vijayawada Unadjusted material advance (PNV road - 6 5502277 IPC 29) 2 A4 PMU, Vijayawada UC not obtained from DFO, Kadapa 4 3210000 TOTAL 14676109 Dy. Accounipt General/GSS 18 Component C5 R&B Division, Nandyal 264000 264000 0 264000 80 211200 19 Component A2 R&B Division, Nellore 17232058 17232058 0 17232058 20 3446412 20 Component A2 R&B Division, Congole 10713995 10713495 10713495 20 2142699 21 Component A2 R&B Division, Parvathipurarn 53829180 53829180 0 53829180 20 10765836 22 Component A2 RDC Division, Rajahmundry 52631971 52631971 0 52631971 20 10526394 23 Component C5 RDC Division, Rajahmundry 48000 48000 0 48000 80 38400 24 Component A2 R&B Division, Srikakularn 39677278 39677278 0 39677278 20 7935456 25 Component A2 R&B Division, Visakhapatnam 20255617 20255617 0 20255617 20 4051123 26 Component C5 R&B Division, Visakhapatnam 447715 447715 0 447715 80 358172 27 Component A2 R&B Division, Eluru 3582046 3582046 0 3582046 20 716409 GRANT TOTAL 1273171460 1273170420 14676109 1258494311 1 677543884 Deputy Aepuntant Genera I/GSS Annexure-1 STATEMENT SHOWING DETAILS OF EXPENDITURE INCURRED i.e.. CATEGORY WISE, COMPONENT WISE, UNIT OFFICE WISE/DISTRICT WISE FOR THE YEAR 2316-17 IN RESPECT OF WORLD BANK ASSISTED ANDHRA PRADESH ROAD JECTOR PROJECT (GRANT 7792-IN) Category/ Actual Expenditure Expenditure Percentage Amount SI.No Name of the Auditee Unit SOE figure Expenditure as disallowed in admitted in Component admissible reimbursable verified in audit audit audit I Component Al PMU, HyderabacVVijayawada 502414836 502414836 11466109 490948727 80 392758982 2 Component A3 PMU, HyderabacUVijayawada 161096678 161096678 0 161096678 80 128877342 3 Component A4 PMU, HyderabacUVijayawada 5023845 5023845 3210000 1813845 80 1451076 4 Component A4(cc) PMU, Hyderabad/Vijayawada 44884000 44884000 0 44884000 0 0 4 Component A5 PMU, Hyderabac&Vijayawada 52338000 52338000 0 52338000 0 0 5 Component C4 PMU, HyderabacUVijayawada 41795264 41795264 0 41795264 80 33436211 6 Component C5 PMU, HyderabadUVijayawada 541816 541816 0 541816 80 433453 7 Component D2 PMU, HyderabacVVijayawada 45042992 45042992 0 45042992 80 36034394 8 Component A2 R&B Division, Ananthapur 15448711 15448711 0 15448711 20 3089742 9 Component A2 R&B Division, Gudur 19567747 19567747 0 19567747 20 3913549 10 Component A2 R&B Division, Dharmavaram 33606294 33606294 0 33606294 20 6721259 11 Component A2 RDC Division, Guntur 7791716 7791716 0 7791716 20 1558343 12 Component C2 RDC Division, Guntur 150000 150000 0 150000 80 120000 13 Component A2 R&B Division, Kalyandurg 8873066 8873066 0 8873066 20 1774613 14 Component A2 R&B Division, Kanigiri 14767949 14767949 0 14767949 20 2953590 15 Component A2 RDC Division, Kurnool 7750821 7750281 0 7750281 20 1550056 16 Component A2 R&B Division, Markapur 7744557 7744557 0 7744557 20 1548911 17 Component A2 R&B Division, Nandyal 105651308 105651308 0 105651308 20 21130262 Annexure-III STATEMENT SHOWING THE DETAILS OF DISALLOWED AMOUNTS FROM EXPENDITURE OF PREVIOUS YEARS NOW (2016-17) RELEASED IN RESPECT OF WORLD BANK ASSISTED ANDHRA PRADESH ROAD SECTOR PROJECT (GRANT 7792-IN) S1. No. Name of the Unit Year of Amount Amount now Balance disallowance disallowed released (Rs.) disallowance (Packages) (Rs.) aMount (Rs.) 1 PMU, Hyderabad/ Vijayawada 201 1-12 202500 0 202500 2012-13 113647818 113647818 0 2012-13 9352418 9352418 0 2012-13 8074049 0 8074049 2012-13 38264236 38264236 0 2012-13 1408160 0 1408160 2013-14 1899948 0 1899948 2013-14 2387183 2387183 0 7,013-14 S??0726 S??0?26 0 2013-14 150400000 150400000 2013-14 4900000 2000000 2900000 2013-14 34992 34992 0 2013-14 3213423 3213423 0 2013-14 69827 0 69827 2013-14 19151521 19151521 0 2013-14 23320421 0 23320421 2014-15 3500000 3500000 0 2014-15 (D2) 101473 101473 0 2015-16 25650248 0 25650248 2015-16 (A4) 172944000 0 172944000 2015-16 (AS) 386491000 0 386491000 2015-16 100000 100000 0 2015-16 17019848 0 17019848 2012-13 371084571 381618226 169239539 PMU (Mobilisation Advance) 2014-15 179773194 0 0 2009-10 767487 719878 47609 2012-13 179483 179483 0 2 R&B Division, Rajahmundry 2014-15 2693 2693 0 2014-15 2693846 2693846 0 2015-16 1863622 0 1863622 3 RDC Division, Rajahmundry 2011-12 58093142 58093142 0 4 R&B Division, Kakinada 2014-15 300476 0 300476 2015-16 799539 0 799539 5 RDC Division, Guntur 2015-16 13010880 13010880 0 6 R&B Division, Guntur 2012-13 20812 0 20812 7 R&B Division, Tenali 2011-12 3937729 3937729 0 8 R&B Division, Srikakulam 2011-12 2718700 2718700 0 S2011-12 125527 0 125527 9 R&B Division, Parvathipuram 2011-12 12348356 12348356 0 10 R&B Division, Visakhapatnam 2009-10 10362800 10362800 0 2009-10 91274 91274 0 2010-11 1561250 1561250 0 2010-11 333703 333703 0 2012-13 87621 87621 ¯ 2012-13 753000 753000 ¯ 2012-13 49926912 0 49926912 2013-14 25498 25498 0 2015-16 521600 0 521600 2015-16 48000 48000 0 11 R&B Division, Gudur 2013-14 1548021 1548021 0 12 R&B Division, NeHore 2015-16 18427332 [8427332 0 201 3-14 477703 477703 0 13 R&B Division, Kanigiri 2014-15 5752470 0 5752470 2015-16 1142080 1142080 0 2015-16 18065 18065 0 14 R&B Division, Adoni 2009-10 6058031 6058031 0 2012-13 164020 164020 0 15 RDC Division, Kurnool 2012-13 3307151 3307151 0 2013-14 582775 582775 0 2015-16 194290 0 194290 2015-16 41369 0 41369 16 R&B Division, Eluru 2009-10 309483 309483 0 2009-10 296559 296559 0 17 R&B Division, Kalyan Durg 2011-12 8500000 8500000 0 ____ _______________ 2014-15 5494 0 5494 2014-15 27469 0 27469 18 R&B Division, Ongole 2012-13 9000 0 9000 19 R&B Division, Nandyal 2013-14 1881287 0 1881287 2014-15 2631186 0 2631186 2015-16 81648 0 81648 2015-16 7419083 0 7419083 20 R&B Division, Dbarmavaram 2011-12 20500000 20500000 0 2014-15 111588 0 111588 21 R&B Division, Ananthapur 2011-12 12500000 12500000 0 2014-15 12629 12629 0 2014-15 63147 63147 0 22 R&B Division, Kadapa 2012-13 61146832 0 61146832 1 __ 2013-14 17345724 0 17345724 TOTAL 1869336749 7594636721 1109873077 Deputy Accountant General/GSS Annexure-IV DETAILED HEAD OF ACCOUNT-WISE EXPENDITURE ON THE WORLD BANK ASSISTED PROJECT- ANDHRA PRADESH ROAD SECTOR PROJECT FOR THE YEAR 2016-17 AS PER THE RECONCILIATION OF DEPARTMENTAL EXPENDITURE (Rupees in lakh) Head of Account Elpenditure Detailed H-ead of ACCOun 0 (ii) Capital Major Head Detailed Head of Account ,054-04-800-03-26-530-531 11334.53 5054-04-800-03-26-530-532 52 3.38 5054-04-800-03-29-530-531 423.37 5054-04-800-03-30-530-531 450.43 (iii) Loans Major Head Detailed Head of Account 0 Total Expenditre 12731.71