I-T-
Ref No: 076/77-312
Date: 23 March 2020
Independent Auditor's Report
The Secretary
Ministry of Finance
Singh Durbar, Kathmandu
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 Hazards
Project, GRANT No : TF 013665-NEP", as of 16 July 2019 (31 Ashadh 2076) and for the year
then ended and a summary of accounting policies and other explanatory notes.
Management's Responsibility for Financial Statements
Management is responsible for the preparation and fair presentation of the Financial Statement of
the project in accordance with the Government of Nepal (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 (International Organization of Supreme
Audit Institution) 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. In making those risk assessment, the auditor considers internal control
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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
evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management as well as evaluation of the 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 including compliance
with financial covenant is attached herewith.
In 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 Hazards Project, GRANT No: TF
013665-NEP as of 16 July 2019 (31 Ashadh 2076), and of the results of its operation and its cash
flows for the year then ended in accordance with GON accounting policies. We also report that the
funds provided under IDA Grant No - 013665- NEP have been utilized for intended purposes.
In addition, with respect to Statement of Expenditure (SOE), (a) adequate supporting
documentation has been maintained to support claims to donors for reimbursement of expenditure
incurred; and (b) expenditure are eligible for financing under the above mentioned IDA Grants.
(Rarn aya Kunwar)
Deputy Auditor General
t rgeb Page: WWwcognepgov.np