NATIONAL DISASTER MANAGEMENT AUTHORITY Ministry of Home Affairs, Government of India NATIONAL CYCLONE RISK MITIGATION PROJECT (NCRMP) NDMA Bhawan, A-1, Safdarjung Enclave, New Delhi -110 029 Tel. No. 26701744 Fax No.26714321 F. No. 1-1/2016-PMU 134? Dated. January 25, 2017 To (1) Shri D. Singh, Sr. Disaster Risk Management Specialist(NCRMP), T.T.L., NCRMP, The World Bank, Hindustan Times House, 18-20, K.G. Marg, New Delhi-110001. J71s. Tripti Jain, Financial Specialist The World Bank, 70, Lodhi Road, New Delhi-3. Sub: Audit Certification on the Project Financial Statements and Audit Reports for PlUs- for Financial Year 2014-15 & 2015-16. Sir/Madam, I am directed to enclose herewith copy of External Audit Report with Audit Certification on the Project Financial Statements in respect of World Bank assisted National Cyclone Risk Mitigation Project - 11 - Maharashtra State for further necessary action at your end please. 2. PlU is also being advised to submit replies to the aforesaid reports immediately. Yours faithfully, (Ashok Sarkar) 3c, xA,.j -4.,7 Project Accountant & Administrative Officer Copy for information with the request that reply to the audit report may please be furnished to the PMU for onward transmission to the World Bank: 1. The Director (DM) & Project Manager, National Cyclone Risk Mitigation Project, Relief and Rehabilitation, Revenue and Forests Department, Mantralaya, Mumbai-400 032. I L14 L1 7 2-6 ÿþ022-2203 3018 81T 1 2219.0500 Vt TMT-, 101, TTRIOA 414, 1kJ - 400 020. Telephone J 2219 0549 INDIAN AUDIT AND ACCOUNTS DEPARTMENT SagauMaharashtra1@cag.govJn OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL E-mail) a (AUDIT)-I, MAHARASHTRA. . WO*ær Pratishtha Bhavan, 101, Maharshl Karve Marg, È4T/No. Mumbal - 400 020. No.EAP/CA (CELL)/WBA/NCRMP/AC/2015-16/j0. tn te 1 2- 1- 20I '7 To, The Director (DM) & Project Manager, National Cyclone Risk Mitigation Project, Relief and Rehabilitation, Revenue and Forests Department, Mantralaya, Mumbai - 400 032. Sub:2 Issue of audit certificate in respect of World Bank assisted National Cyclone Risk Mitigation Project - II Cr.No. 5693-IN for the year 2014-15 and 2015-16. Sir, Please find enclosed the Audit Certificates alongwith the Annexures 'A' & 'B' for Z 11,89,000/- (Rupees Eleven lakh Eighty Nine Thousand only) for the year 2014-15 and for Z 33,87,000/- (Rupees Thirty Three Lakh Eighty Seven Thousand only) for the year 2015-16. The following documents are also enclosed in addition to the audit certificate: 1) Statement of Sources and Applications of Funds (Annexure-I) and Reconciliation of Claims to Total Applications of Funds (Annexure II) for the year 2014-15 and 2015-16. 2) Management Letter Kindly acknowledge the receipt of the above. Yours faithfully, Ench As above. (U. M. Shinde, 1AAS) Sr. Deputy Accountant General /Admn. 022-2203 3018 FaxJ V11 1 2219.0500 400 020. Telephone J 2219 0549 INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL E-mailj agauMaharas ag. n wg X (AUDIT)-I, MAHARASHTRA. Pratishtha Bhavan, 101, Maharshl Karve Marg, - iW/ N o. Mumbal - 400 020. R*i/Date : Report on the Project Financial Statements We have audited the accompanying financial statements of the World Bank assisted National Cyclone Risk Mitigation Project - II Cr.No. 5693-IN for the year 2014-15, which comprise the Statement of Sources and Application of Funds for the year ended 31 g March 2015. These statements are the responsibility of the Project's management. Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We 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 examines, 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 financial statements present fairly, in all material respects, the Sources and Application of Funds of World Bank Assisted National Cyclone Risk Mitigation Project- II Cr.No. 5693-IN for the year 2014-15 for the year ended 31" March 2015, 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 expenditures incurred; and (b) except for ineligible expenditures as detailed in the audit observations, if any, appended to this audit report, expenditures are eligible for financing under the National Cyclone Risk Mitigation Project- 11 Cr.No. 5693-IN. During the course of the audit, SOEs for Z 11,89,000/- (Rupees Eleven lakh Eighty Nine Thousand only) and the connected documents were examined and these can be relied upon to support reimbursement- under the Credit No.5693-IN (Annexure A). (Amount Objected Nil is shown in Anne'xure B) This report is issued without prejudice to Comptroller & Auditor General's right to incorporate the audit observations in the Report of Comptroller & Auditor General of India for being laid before Parliament/State or UT Legislature. Date: 1, 2 017 Sr. Deputy Accountant eneral /Admn. Annexure - 'A' Expenditure incurred for the year 2014-15 in respect of World Bank Assisted National Cyclone Risk Mitigation Proiect-II Credit No. 5693-IN Name of the Office Amount of expenditure incurred on the project (in Rupees) Office of the Pr. Accountant General (Audit)-I, Maharashtra, Mumbai. 1189000 TOTAL 1189000 (Rupees Eleven Lakh Eighty Nine Thousand Jonly) Sr. AMat Officer/EAP CA CelI Annexure'B Details of amount held under objection as a result of local audit in respect of World Bank Assisted National Cyclone Risk Mitigation Project-II Credit No.5693-IN for the year 2014-15 Name of the office Name of the Para No Amount of Nature of Implementing Agency objection objectioi (in Rs.) Office of the Pr. Accountant General(Audit)I, Maharashtra, Mumbai TOTAL .... Nil ... Sr. Audit officer/EAP/CA(Cell) World Bank Assisted National Clelone Risk Mitigation Project- I Credit No. 5693-IN for the year 2014-15 Worksheet Sr. Name of the Implementing Amount as Amount Amount Amount Agency verified by held under No. per S LAP ojetion certified I Secretary to the GoM, Revenue and Forests Department (Relief and Rehabilitation ) and Project Director, NCRMP II, Mantralaya, Mumbai 1189000 1189117 0 1189000 TOTAL 1189000 1189117 0 1189000 Sr. udi6fficer/EAP CA Cell 022-2203 3018 AAW-ZR, ww*m. Fax 2219.0500 f W.r, 101, Tr &K W TTI, # - 400 020. Telephone 2219 0549 INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL agauMaharashtra1@caggovin r (AUDIT)-I, MAHARASHTRA. E-mail Pratishtha Bhavan, 101, Maharshl Karve Marg, TWT/No. Mumbai - 400 020. Report on the Project Financial Statements We have audited the accompanying financial statements of the World Bank assisted National Cyclone Risk Mitigation Project - 11 Cr.No. 5693-IN for the year 2015-16 which comprise the Statement of Sources and Application of Funds for the year ended 31" March 2016. These statements are the responsibility of the Project's management. Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We 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 examines, 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 financial statements present fairly, in all material respects, the Sources and Application of Funds of World Bank Assisted National Cyclone Risk Mitigation Project- II Cr.No. 5693-IN for the year 2015-16 for the year ended 31s March 2016, 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 expenditures incurred; and (b) except for ineligible expenditures as detailed in the audit observations, if any, appended to this audit report, expenditures are eligible for financing under the National Cyclone Risk Mitigation Project- II Cr.No. 5693-IN. During the course of the audit, SOEs for ? 33,87,000/- (Rupees Thirty Three Lakh Eighty Seven Thousand only) and the connected documents were examined and these can be relied upon to support reimbursement under the Credit No.5693-IN (Annexure A). - (Amount Objected Nil is shown in Annexure B) This report is issued without prejudice to Comptroller & Auditor General's right to incorporate the audit observations in the Report of Comptroller & Auditor General of India for being laid before Parliament/State or UT Legislature. Date: l.2Of17 Sr. Deputy Accountant G eral /Admn. 'Tll Annexure - A Expenditure incurred for the year 2015-16 in respect of World Bank Assisted National Cyclone Risk Mitiontion Project-I Credit No. 5693-IN Name of the Office Amount of expenditure incurred on the project (in Rupees) Office of the Pr. Accountant General (Audit)-I, Maharashtra, Mumbai. 3387000 TOTAL 3387000 Sr. i eEAP CA Cell Annexure'B' Details of amount held under objection as a result of local audit in respect of World Bank Assisted National Cyclone Risk Mitigation Project-II Credit No.5693-IN for the year 2015-16 Name of the Name of the Para No Amount of Nature of office Implementing Agency objection (in objection Rs.) Office of the Pr. Accountant General(Audit)I, Maharashtra, Mumbai TOTAL .... .f.Nil.... Sr. u at ofcrEPC(el World Bank Assisted National Cyclone Risk Mitigation Project - II Credit No. 5693-IN for the year 2015-16 Worksheet Sr. Name of the Implementing Amount as Amount Amount Amount Agency verified by held under No. per S LAP objection certified I Secretary to the GoM, Revenue and Forests Department (Relief and Rehabilitation ) and Project Director, NCRMP 11, Mantralaya, Mumbai 3387000 3387218 0 3387000 TOTAL 3387000 3387218 0 3387000 Srt IcerEAP CA Cell 022-2203 3018 Fax OIN } 2219.0500 V W 400 020, Telephone ) 2219 0549 INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL E-Mail WM441MOi (AUDIT)-I, MAHARASHTRA. Pratlshtha Bhavan, 101, Maharshi Karve Marg, NO. Mumbal - 400 020. No.EAP/CA (CELL)/WBA/NCRMP/AC/2015-16/ To, The Director (DM) & Project Manager, National Cyclone Risk Mitigation Project, Relief and Rehabilitation, Revenue and Forests Department, Mantralaya, Mumbai - 400 032. Sub: Management letter on the issues observed during the audit of World Bank assisted National Cyclone Risk Mitigation Project - Il Cr.No. 5693-IN for the year 2015-16 Sir, Audit of the Statements of Expenditure (SOE) in respect of World Bank assisted National Cyclone Risk Mitigation Project - II Cr.No. 5693-IN has been conducted for the year 2015-16. Following observations noticed during the course of audit is brought to your notice for necessary action in this regard. Utilisation Certificates for an amount of Z 26,41,000/- are pending. Prompt action need to be taken to submit the outstanding Utilisation Certificates. (U. M. Sh de, IAAS) Sr. Deputy Accountant General /Admn. Name of the Project: National Cyclone Risk Mitigation Project(NCRMP-11 Loan/Credit/Grant No.5693 Statement of Sources and Application of Funds Report for the year ended 2015-16 Amounts in Lakhs) Particulars Current Year Total for 2015-16 Previous Year Project to date retro active period 1 for the period 11-8-15 retro active period 4-15 to 10-8-15 to 31-3-16 1-7-14 to 31-3-15 Opening Balance (A) 0 0 2.57 Nil Receipts Funds received from the Governement through Budget( Gov.of India) Funds received from the Governement through Budget(State Gov.) 6.6 6.65 13.25 14.34 27.59 Funds received directly by Project Implementing Authority through external assistance 0 487 487 0 487 Beneficiary Contribution (Interest Received) 0.02 1.46 1.48 0.12 1.6 Total Receipts (B) 6.62 495.11 501.73 14.46 516.19 Total Sources (C=A+B) 6.62 495.11 504.3 14.46 516.19 Expenditure Components Incremental Cost of operations 7.46 26.41 33.87 11.89 45.76 B. C. Total Expenditures (D) 7.46 26.41 33.87 11.89 45.76 Closing Balance (C-D) 0 0 470.43 2.57 (Shrirang holap) Under Secretary Revenue & Forest Deptt. Name of the Project: National Cyclone Risk Mitigation Project(NCRMP)-lI Loan/Credit/Grant No.5693 Statement of Sources and Application of Funds Report for the year ended 2014-15(retro active period 01-07-2014 to 31-03-2015) (Amounts in Lakhs) Particulars Current Year Previous Year Project to date Opening Balance (A) Nil Ni- Receipts Funds received from the Governement through Budget(State Gov.) 14.34 0 14.34 Funds received directly by Project Implementing Authority through external assistance 0 0 0 Beneficiary Contribution (Interest Received) 0.12 0 0.12 Total Receipts (B) 14.46 0 14.46 Total Sources (C=A+B) 14.46 0 14.46 Expenditure Components Incremental Cost of operations 11.89 0 11.89 B. Total Expenditures (D) 11.89 0 11.89 Closing Balance (C-D) 2.57 - (Shrirang Gholap) Under Secretary Revenue & Forest Deptt. Mantralaya, Mumb,i. Name of the Project: National Cyclone Risk Mitigation Project (NCRMP)-If Loan/Credit/Grant No.5693 Reconciliation of Claims to Total Applications of Funds Report for the year ende d 2014-15 Particulars Sh dueAmount in Lakhs Curent Year Previous Year Project to Date Bank funds claimed during the year (A) 10 0 0 Total Expenditure made during the year (8) 0 01 0 Less: Outstanding AC bills (C) 0 0 0 Ineligible expenditures (D) III 0 0 0 Expenditures not claimed (E) IV 0 0 0 Total Eligible Expenditure Claimed (F) = (B)-(C )- (D)- (E) 0 0 0 World Bank Share @ x% of (F) above (6) Nil Nil it (Shrirang Gholap) Under Secretary Revenue & Forest Deptt. Account Officer, NCRMP-II Under Secretary Ma ntralaya, Mumbai. Note: 1. Total expenditure made during the year (B above)must be the same as the Total Expenditures shown on the Statement of Sources and Application of Funds (D on the Statmtentof Sources and Applications of Funds) 2. Outstanding AC bills (C above)reflect funds drwan against AC bills that have been booked as Expenditure but not settled by the end of the year(ie.unsettled advances).The project should show in Schedule I the opening balance of unsettled AC bills,Ac bills drwan during the yearAC bills settled during the year, and AC bills unsettled at the end of the year. 3.Expenditure not claimed(E above) may reflect timinig differences for elgible expenditure incurred during the year but claimed after the year end. 4.Amounts A and G above must ne equal. Name of the Project: National Cyclone Risk Mitigation Project (NCRMP)-lI Loan/Credit/Grant No.5693 Reconciliation of Claims to Total Applications of Funds Report for the year ended 2015-16 Particulars Amount in Lakhs Schedule Curent Year Previous Year Project to Date Bank funds claimed during the year (A) I 0 0 0 Total Expenditure made during the year (8) 0 0 0 Less: Outstanding AC bills (C) 11 0 0 0 Ineligible expenditures (D) 111 0 0 0 Expenditures not claimed (E) IV 0 0 0 Total Eligible Expenditure Claimed (F) = (B)-(C )- (D)- (E ) 0 0 0 World Bank Share @ x% of (F) above (G) Nil i___ Ni hrirang Gholap) 1d0 o qty Under Secretary Account Officer, NCRMP-I r Mt. Note:1. Total expenditure made during the year (B above)must be the same as e T6t I nd i1t S hown on the Statement of Sources and Application of Funds (D on the Statmtentof Sources and Applications of Funds) 2. Outstanding AC bills (C above)reflect funds drwan against AC bills that have been booked as Expenditure but not settled by the end of the year(ie.unsettled advances).The project should show in Schedule II the opening balance of unsettled AC bills,Ac bills drwan during the year,AC bills settled during the year, and AC bills unsettled at the end of the year. 3.Expenditure not claimed(E above) may reflect timinig differences for elgible expenditure incurred during the year but claimed after the year end. 4.Amounts A and G above must ne equal.