Office of tlie Director General of Audit, (Home, Education & Skill Development) Indraprastla Estate, New Dellii - 110002 Telephone: 23454135 (Fax : 011-23702271,72) S .T - .T- R E /2 / frlT: 03.11.202 0 The Director General, Skill Strengthening for Industrial Value Enhancement (STRIVE), Directorate General of Training, 1" Floor, Kaushal Bawii, Pusa Road, Karol Bagli, New Delbi - 110001 Subject: Audit Report/Opinion in respect of World Bank Project- Skill Strengtliening for Industrial Value Enhancement (STRIVE) IDA No. 5965-IN for tlie year 2019-20. Sir, Please find enclosed Audit Report/Opinion on World Bank assisted Project- Sk Strenghening lor Industrial Value Enhancement (STRIVIE') IDV No. 5965-IN . M o Skil Development and Entrepreneurship for the year 2019-20 Encl'osed: As above Yours faithfu1lly Director (A.M.G.- [Il #~41T~. ~ 110002 Office of the Director General of Audit, (Home, Education & Skill Development) Indraprastha Estate, New Delhi - 110002 Telephone: 23454135 (Fax : 011-23702271,72) To, Neelam Shami Rao, Director General, Skill Strengthening for Industrial Value Enhancement (STRIVE), Directorate General of Training, I "Floor, Kaushal Bhawan, Pusa Road, Karol Bagh, New Delhi Report of the Comptroller and Auditor General of India in respect of World Bank assisted Project- Skill Strengthening for Industrial Value Enhancement (STRIVE) Credit No. 5965-IN We have audited the accompanying financial statements of the Skill Strengthening for Industrial Value Frnhanceenit (STIMIV) Credit No. 5965-IN, which comprise the Statement of Sources and Applications of lunds and thc Reconciliation of Claims to Total Appropriations of Funds for the year ended March 2020. These statements are the responsibility of' the Projecet management. Our responsibility is to express an opinion on the accompanying financial statement based on our audit. We conducted our audit in accordance with the Auditing Standards promulgated b 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 materia misstatement. Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles uscd and significant estimates made by management. as well as evaluating the overall statemeti presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly. in all material respects. the seutrcee and application of funds of Skill Strengthening for Industrial Value Enhancement (SIRIVi Credit No. 5965-IN for the year ended March 2020. in accordance with Governmient of Indka accounting standards. In addition. in our opinion. (a) with respect of SoE")s, adequate supporting documentation0 has been maintained to support claims to the World Bank for reimbursements of expenditures incurred: and (b) except for ineligible expenditures for the year 2019-20 (Z 34.07.7 .91;-) and for the year 2018-19 (' 37.24.45.170/-/GIA) as detailed in the audit obser\ations, if an\, appended to this audit report. expenditures are eligible for financing under the Loan/(redi Agreement No. 5965-IN. Iunrin the course of audit, SoE's for the yMear 201 -2M101amonuti Z43.54,1 1,287/-) and for the \ear 2018-19 (Z 38.73.11 .970/-/GIA) respectivel the connected documents wvere exanimincd and these can be relied upon to support reimbursement uindcr th1 ILoan/(Credit Agreement. This report is issued wx ithout prejudice to CA( 's right to incorporate the audit id iobsCrx atin in the Report of CAG of' India for being laid before Piarliaicnt. " 4I;1 (Atul Prakash) Director (AMG-I II) O/o The Director General of Audit, (flonic, Education & Skill Development), New 1)elhi-110002. Diatc: 03.11.2020 t~~T 1Ž-jTÍ Ñ d l - l 0002 Office of the Director General of Audit, (Ilone, Education & Skill Development) Indraprastha Estate, New Delhi - 110002 Telephone: 23454135 (Fax : 01 i-23702271.72) MJVanagement Letter *q-,qT :T.T.-ýf.-I l /31Tr.3TC/-3-01/ST R ZIVFE/2020-21/ R 1:03.1 1.2020) To, The Director General, Skill Strengthening for Industrial Vatlue Enhancemeiit (STRIVE1), Directorate General of Training, V' Floor, Kaushal Bliaw an, Pusa Road, Karol Bagh, New Delhi - I10001 Subject: Audit Report/Opinion in respect of World Bank Project- Skill Strengtheninm,' for Industrial Value Enhancement (ST RIVE) 1IDA No. 5965-IN for the year 2019-20. Sir/NMadani, We hax e aud ited the Annual Fi naneiilatements of- World Bank Assisted rojecti Ill ~Strengtheni ng for Industirial Vale nhancement (STIVE) IDA No. 5965-IN. M e Sill De\ eloipmnnt and Entrepreneurship for tle year 2019-20. The follo\in deleiences ha\e be noticed during the course oi aud it. \\hich hla\e not len incliuded in tle \udit Repert are lin briought ut to your kind notice ,or correcti\ e and remedial alion: a) Inadmissible expenditure aniounting to ý 1,53,417/- Serutiny ofiTA vouchers for the y\car 2019-20 in respect of seheie- STIVE reM cil,' tihat the folxe\owing ourneys (dettils are mentioned in Annexure-) \ere performed eitherh tihe purpose of the scheme. Il ence, an aniit of ý 1.53.417 is disaloedfo the clai lirm tlie World Bank. b) Clainis of Z 3,73,917 disallowed Serultin of Statement of E`xpendture of Worik Bank-S TIVE relating to l \ o hi period 2019-20 revealed tihat an amiounit of '373917 could not be \er-illed inil auditi as recds wc er niot made available to audit. The details of such sanctions are as under: Sr. Sanction No. Bill No. Sanction ileneficiary Name No. Anount 1 \ R C 9ash-201 20 1P00000 85 14.918 Sinjy Kmitar 2 S ()1IV 'sl-( i2-( 0>002( .0(()( anj n\ Kmr 4. \0 I ourK/ash 201 9-20 (0)000460 41 3 Sanjav Kumiar TA /Tour/Cash-201 9-20 CP0000005 4 33 703 San ja\ Kuimar 6. I\ 1 0R V('sh-( 20 N-( 10)062 57.44 I anja vi Kui nar 7 TA TOUR Cash-0 i9-20 CP00000184 70)82 Piar\een Kumar 8. IV Åd'iae ('sh-0 I 09-2( ('1>000029 5 I 5,590 en Kumar . I A1 0en^1ashl-2) 0 9-2 C((00000456 76,987 en K tumar i A0. IATOR WCash-201 9-20 c 0000139( 3 23.69 Sas ilI. l A1T( )1.;1Z/Cash~20l I9-20. C P>000013 393 I3.80)6 Stei ed 12 VA/TOi R/ash-20[9~20 (P00000278 2.114 Vnit Kumar 13.. }IiC AD)VAN('( /\SI l 09-20 ( l0)00191 51.000 Vint Kunar 14. TA/ our/Cash-2019-20 (P00000372 15.580 Vnit Kuniar IFotal 3,73,917 c) Claims without obtaining UCs. As per one of the clauses of Operation Manual- STRIVE which states that funds shall bk. released onil on achievement of the annual targels. If the target has not been met, funds allocac för the target shall not be released even if expenditure has been incurred towards the target Scrutiny of records revealed that an amount of Z 34.04,09,000/- was disbursed to States/ T 1s as Grant-in-aid under MiH 2230, 3601and 3602 during the year 2019-20 and three UCs lve been received so far in which an amounit of 1.61,043/- is valid for reimbursement. lence, an amomi of ý 34,02.47,957 (? 34,04,09,000- ? 1,61.043) is disallowed for the claim from the World Hank during the period 2019-2020. Further. it was noticed that an amount of 38,73,11,970/- (ý35,77,66,970 + 2,95,45.000 was disbursed as Grant-in-aid under Mil 2230, 3601 and 3602 during the year 2018-19, againv which only Six UCs have been received by MSDE so far in which only one U1C amounting tw S1,48,66,800/- is valid for reimbursement. The remaining amount cannot be treated as expenditure on scheme-STRIVE and xilll only be treated as expenditure once the U Cs for elic same will be received. I lence, an amount of Z 37,24,45,170 ( 38,73,11,970- 148.66,800) disallowed for the claim from the World Bank for the year 2018-19. Yours faithllo r Atu Pr-akash A 11可Ic、u rc一A 一一 To(al Anlount Disallowed 2019-20 S.No Para no Aniount (in Rs.) i Para no I Zl,53,417 2 Para no 2 Z 3,73,917 3 Para no 3 Z 34,02,47,957 - Total -- Z 3-4,07,75,2-91- 2018-19 S.No Para no Anmunt (in Rs.) i Para no 2 Z 37,24,45,170 Total Z 37,24,45,170