AUDIrrVS PO Audit Completion Date: 28-11-2019 To Scnior Secretary Financial Institutions Division Nilinistry of Finance Bangladesh Secretariat, Dhaka. 1. We have audited the accompanying financial statement of the "Nuton Jibon Livelihood Inprovement Projeet (NJLIP)" for the fiscal year 2018-2019 financed under IDA Credit No -5594-BD as of 30l' June 2019 and for the years then ended. The preparation of financial statement is the responsibility of managenient. Our responsibility is to express an opinion on the financial statement based on our audit. IL We conducted our audil in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement. An audit ineludes examining on a test basis, evidence supporting the amounts and diselosures in the financial statement, An audit also includes assessing the accounting principles osed and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis fot' ont opinion. I1. In our opinion, the Financial Statement, except as stated in the preceding paragraph and non-compliance of financial rules and regulations in subsequent observations inclucled in this reprot the Financial Statement, gives a fair view in all material aspects of the financial position of "Nuton Jibon Livelihood Improvement Project (NJLIP)" financed by IDA Credit No -5594-BD as of 30' June 2019 and the result of its operation and cash flows for the year ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. IV. Opinion Status: Unqualified. (Md. Nurul Islam) Deputy Director For Director General Foreign Aided Projeets Audit Directorate Tel: 9362190. .7- Nuton Jibon Livelihood Improvement Project Credit number 5594-1BD, Implemented by SDF Project Financial Statement 30th June, 2019 (Figures in Lakh Taka) Cumulative Cumulative Current Resources Notes PriortPe Current Period Per Prior Period Period Cash Opening Balance 10,685.38 Fund received from GOB 15,600.00 - 15,600,00 Loan from Development Partner 89,171.86 44,164.77 133,336.63 Other Resources 258.55 268.94 527.49 Total Resources 105,030.41 55,119.09 149,464.12 Expenditure and Cash 1 Component Al: Development and Strengthening 5,121.39 16,627.73 Community Institutions 11,506.34 2 Component A2: Financing of Community Plans 71,625.88 32,061.16 103,687.04 3 Component A3: Nutrition Awareness and Support 508.69 641.00 1,149.69 4 Component BI: Business Partnerships Development 1,445.78 766.77 2,212.55 and Market Linkages 5 Component B2: Second-tier Institutional Development 1,276.57 829.33 2,105.90 Support 6 Component B3: Employment Generation Support 93.35 100.93 194.28 7 Component Cl: Project Management(IDA) 62,31 32.04 94.35 8 Component Cl: Project Management(GOB) 7,410.79 2,913.77 10,324.56 9 Component C2: Monitoring and Learning 415.31 431.83 847.14 Total Expenditure 94,345.03 42,898,22 137,243.24 Cash Closing Balance 10,685.38 12,220.87 12,220.87 IDA Advance 0.47 1.26 1.26 Operating Account (RPA) 2,031.89 4,898.30 4,898.30 Operating Account(3 Region Office) 205.26 1,518.38 1,518.38 GOB Advance 11.81 28.83 28.83 Operating Account 8,398.38 5,694.60 5,694.60 Operating Account(3 Region Office) 37.56 79.50 79.50 Total Expenditure and Cash 105,030.41 55,119,09 149,464.12 ASSt Vnag4 n vd. Delowarul Islam 2A Socialvelo~CpmidUiA UPIManager (Finance) Social DeveloPlnen~t F~oundatioll (SOMl Md, M\ahb ubut Atalm OireclKr F inance & procuremeni S o pi l eelopilnent FounldabiO (SOF) 1 Nuton Jibon Livelihood Improvement Project Notes to the Financial Statement 30t June, 2019 1. GOVERNMENT OF BANGLADESH fund are allocated by the Government of Bangladesh to Bangladesh to cover GOB's share of eligible plojoci expenditures , as specified in the Project Pro-forma and in the Annual Development Program for each of the pojoc, Any allocated funds that have not been expended by the end of a fiscal year lapse and must be returned to GO1. GOII contribution to the project since inception are as follows: (in Lakh Taka) Inception to 30t" For the year Inception to 30 June, 2018 2018-2019 June, 2019 Disbursement by GOB 156,00.00 00 156,00.00 Less : Refund to GOB 0 0 0 Total 156,00.00 00 156,00.00 2. LOAN FROM DEVELOPMENT PARTNER The (name of the Development Partner- International Development Association (IDA)) has provided funds to the project to cover it's share of eligible project expenditures. These funds, which must be repaid to (name lender/donor) after the conclusion of the project have been drawn by the project in accordance with the following withdrawal procedures. (in Lakh Taka) Inception to 30th For the year Inception to 30th June, 2018 2018-2019 June, 2019 Initial Deposit (Advance) 120,00.00 00 120,00.00 DPA (Direct Payment) 0 0 0 RPA (SOE Procedure) 771,71.86 441,64.77 1213,36.63 RPA (Non SOE Procedure) 0 0 0 Total 891,71.86 441,64.77 1333,36.63 3. OTHER RESOURCES Other resources consist of the following: Inception to 30th For the year Inception to 30th June, 2018 2018-2019 June, 2019 Project Revenues 258.55 268.94 527.49 Exchange gains/losses 0 0 0 Total 258.55 268.94 527.49 4. CASH The project maintains two bank account, an imprest bank account, or revolving fund, which is kept at Sonali Bank to hold funds advanced by IDA and an operating accounting, which Is kept at a Janata bank to hold funds advanced by GOB as well as funds transferred from the imprest bank account. Year end cash balances were as follows (In Lakh Taka) Inception to 30 For the year Inception to 30 June, 2018 2018-2019 June, 2019 Imprest Account 2,55.10 16,27.97 16,27.97 Operating Account (RPA) 20,31.89 48,98.30 48,98.30 Operating Account (GOB) 83,98.38 56,94.60 56,94,60 Total 106,85.37 122,20.87 122,20,87 Alif doha Hader Md. Deowal*u Isuu Asslt Manager (Accoulls) Mnager(Finance) Mdi. Mabb procuremen 006160evlomont FoiIndalion (SDF S,cial DeveloPmenlt I`01ndo""01 ove",F AUDITORS REPORT ON SPECIAL ACCOUNT 1) We have audited Special Account Statement of Nuton Jibon Livelihood Improvement Project. (NJLIP), Dhaka for the year 2018-2019 financed by IDA under Financing Agreement No-5594 BD. 2) Our audit was carried out accordance with International Auditing Guidelines.Accordingly our audit included such review of systems of internal control ,tests of the accounting records and supporting documentation,verification of account balances and other auditing procedures that we considered necessary under the circumstance. 3) The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above credit covenant through Sonali Bank Ltd. Ramna Corporate Branch, Dhaka operating Account No. STD-442636000837. Opinion: As per special account statement total Tk. 42898.22 lakh was given to the mentioned project operating account by the World Bank during the year under audit. In our opinion the special account statement gives a fair view of the accounting activities for the year ended 30 june 2019 on the basis of cash deposit and withdrawals. (Md. N il Islam) Deputy Director For Director General Foreign Aided Projects Audit Directorate Tel: 9362190, -19 - Social Development Foundation (SDF) Nuton Jibon Livelihood Improvement Project SPECIAL/ DESIGNATED ACCOUNT STATEMENT For the year ending June 30, 2019 (,ount No. 4416403000119 -Alsitory Bank Sonali Bank Ltd., Lalmatia Branch, Dhaka kolated Credit Agreement No. 5594-BD PART-A ACCOUNT ACTIVITY (Figure in BDT) Begining balance as on July 01,2018 203,189,059.00 Advance 20,572,828.00 dd: leimbursement against submission of withdrawal application 4,416,477,255.00 Jther Received Total Received 4,640,239,142 otal amount refunded to cover ineligible expenditure Nil )educt: otal amount withdrawn 3,998,444,692 Expenditure 3,998,444,692 xcess of income over Project expenditure ess. Field level Bank Accounts 151,838,057 kdd. Credited in the Bank Book but not deposited by Bank 4,620,273.00 Add. Cheque issued but not presented 5,824,110.00 ess : Advance 126,000.00 ;alance as per bank statement as on June 30, 2019 500,274,776 Alif Mohammad Halder Asst. Manager (Accounts) - , - b V ocial Develooment Foundation (01' Md. Delowarul leam e Md. M rbu c rment Manager ono (SD) Diecto Finance & Proruren Scial DeveOPMen Social0oeviiopme f it ACCOUNT RECONCILIATION: 1O1m( (iiiitnced by World bank 1,200,000,000.00 Inhinoimunirt recovered by World bank 1litilh I 'resent outstanding amount advanced to the special 4poiIljin it liscal year ended June 30,2018 1,200,000,000.00 fing balance of special Account at fiscal year ended June 30,2019 500,274,775.50 bi Amount claimed and not yet admitted at fiscal year 11110 Jie 30,2017 Application No. Amount Amount spent and not yet claimed till June 30,2019 558,205,550.50 Wiihidrawal Application No.38 558,205,550.50 Plus: Amount withdrawn and not yet claimed till June 30,2019 Less: Interest Earning ( If included in Special Account ) Nil Plus:Service charges ( If not included in lines 5 and 6 above) Nil Balance lying with operating account at field level: i) Agrani Bank Ltd., Battola Branch, Barisal 38,721,713.00 ii) Sonali Bank Ltd., Mymensingh Branch, Mymensingh 71,655,441.00 iii) Sonali Bank Ltd., Khulna Corp. Branch, Khulna 36,309,393.00 iv) Advance for differrent purposes 5,277,510.00 151,964,057.00 Less: i) Cheque issued but not presented into Bank for payment till June 30, 2019 5,824,110.00 ii)Interest credited by Bank but not entered in cash book 4,620,273.00 10,444,383.00 Equal: Total advance to Special Account accounted for fiscal 1,200,000,000.00 year ended June 30,2019 1lif Mohammad Hider Assit. Manager (Accounts) orial Development Foundalion(SDF Md. Delowar Isl Sca aar Foundatio (SDV) Md.MabulAm Audit Opini on SOE 1) We have audited Statement of Expenditure (SOE) of Nuton Jibon Livelihood Improvement Project. (NJLIP), Dhaka for the year 2018-2019 submited to the World Bank for the reimbursement of expenditure in accordance with the IDA Financing Agreement financed by IDA under financing Agreement No-5594 BD. 2) Our audit was concluded following International Standared of Auditing. Accordingly our audit included such review of systems of internal control, tests of the accounting records and supporting documentation. So far exists and adopting necessary auditing procedures that we considered essential under the circumstances. Withdrwals /SOE Particulars: Summary of withdrawal Applications/SOE particulars are enclosed. Opinion: In our opinion except as discussed in the Management letter, the Statement of Expenditure (SOE) to support the applications for credit disbursement for expenditure incurred for the purpose of the project specified in the particulars of the withdrawal applications. (Md. Nurul Islam) Deputy Director For Director General Foreign Aided Projects Audit Directorate Tel: 9362190. - 20 -