Financial Attest Audit Report on the Accounts of
Foreign Aided Project
FATA Temporarily Displaced Persons, Emergency
Recovery Project (TDP-ERP) Sponsored by International
Development Association under Loan No. IDA 6139PK
Executed By
National Database & Registration Authority
For The Financial Year 2023-24
Auditor-General of Pakistan, Islamabad
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TABLE OF CONTENTS
Page No.
LIST OF ABBREVIATIONS & ACRONYMS
PREFACE 11
PART-I 1
PROJECT OVERVIEW 2
AUDITOR'S REPORT TO THE MANAGEMENT (Audit Opinion) 4
FINANCIAL STATEMENTS 6
PART-II 11
MANAGEMENT LETTER 12
EXECUTIVE SUMMARY 13
1. Introduction 15
2. Audit objectives 15
3. Audit scope and methodology 15
4. Audit findings and recommendations 16
4.1 Financial Management 16
4.2 Procurement and Contract Management 25
4.3 Compliance with the terms of Agreement 35
4.4 Human Resource Management 37
4.4 Assessment of Partner's Financial Management Capacity 40
4.5 Overall Assessment 40
5. CONCLUSION 41
ACKNOWLEDGEMENT 42
ANNEXURE 43
Abbreviations & Acronyms
AGP Auditor General of Pakistan
CFC Citizen Facilitation Centers
CNIC Computerized National Identity Card
CWG Child Wellness Grant
ODO Drawing and Disbursing Officer
DGCA&E Director General Commercial Audit & Evaluation
DoH Department of Health (FATA)
DRP Disabled Rehabilitation Person
EAD Economics Affairs Division
FATA Federally Administered Tribal Areas
FDMA FATA Disaster Management Authority
GoP Government of Pakistan
GR Grievance Redressal
GST General Sales Tax
IBRD International Bank for Reconstruction and Development
ICB International Competitive Bidding
IDA International Development Association
ISA International Standards on Auditing
ISSAis International Standards of Supreme Audit Institutions
KP Khyber Pakhtunkhwa
LSG Livelihood Support Grant
MDTF Multi-Donor Trust Fund
MEA Ministry of Economic Affairs
MIS Management Information System(s)
MoF Ministry of Finance
MoU Memorandum of Understanding
NADRA National Database and Registration Authority
NBP National Bank of Pakistan
NCB National Competitive Bidding
oss One Stop Shop(s)
PAK Pakistan
PC-I Project Cycle-I
PMU Project Management Unit
PSP Payment Service Provider
Rs. Rupees
SAFRON States and Frontier Regions
TA/DA Traveling Allowance/ Daily Allowance
TOP-ERP Temporarily Displaced Persons Emergency Recovery Project
UNDB United Nation Development Business
USA United States of America
WB World Bank
PREFACE
The Auditor-General conducts audit under the authority provided in Articles 169 and 170
of the Constitution of the Islamic Republic of Pakistan, 1973 read with sections 8 and 12 of the
Auditor-General's (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001.
The audit of the accounts of Foreign Aided Project namely Federally Administered Tribal Areas
Temporarily Displaced People, Emergency Recovery Plan (FATA TDP-ERP) Project, under
loan No. IDA 6139PK executed by National Database & Registration Authority (NADRA) for
the year 2023-24 was carried out accordingly.
The Directorate General Commercial Audit and Evaluation (North), Islamabad conducted
audit of the Foreign Aided Project FATA TDP-ERP Project, under loan No. IDA 6139PK
executed by National Database & Registration Authority (NADRA) for the year 2023-24 with a
view to report significant findings to stakeholders. The primary focus of the audit was to express
an opinion on the Financial Statements of the project. We also examined the economy,
efficiency, and effectiveness aspect of the project. In addition, audit also assessed, on test check
basis, whether the management complied with applicable laws, rules and regulations in
managing the project. The Audit Report indicates specific actions that, if taken, will help the
management to realize the objectives of the project more effectively.
The Report consists of two parts. Part-I contains Auditor's Report (Audit Opinion) and
Financial Statements. Part-II contains Executive Summary and Audit Findings.
The Report has been prepared for submission to the International Development
Association (IDA).
Dated: , 2024 MU~TT
~
Place: Islamabad (Director General CA&E, North)
ii
.
PART-I
1. PROJECT OVERVIEW
2. AUDITOR'S REPORT TO THE MANAGEMENT
3. FINANCIAL STATEMENTS
PROJECT OVERVIEW
Name of Project: Federally Administered Tribal Areas (FATA)
Temporarily Displaced Persons Emergency Recovery
Project (FATA TDP-ERP)
Sponsoring Authority: International Development Association/ World Bank
Executing Authority: National Database & Registration Authority (execution
of Component-3 of the project)
Loan No: IDA 6139PK
PC-I Cost NIA
Date of Commencement: 23.09.2015
Actual Date of Commencement: 23.09.2015
Date of Commencement of Loan:
(IDA-6139PK): 24.10.2017
Date of Completion: 30.06.2025
Date of Approval by ECNEC: NIA
Loan Utilization Status Rs 1,062,201,871 (USD 3,693,714@Rs 287.5701)
FY 2023-24:
Progressive Expenditure: Rs 3,676,034,674 (USD 17,083,417)
Brief Description of Project
National Database & Registration Authority (NADRA), entered into a project
implementing agreement with International Development Association (IDA) on 23
September, 2015 pursuant to a financing agreement between the Government of Pakistan
(GoP) and IDA. Under this agreement, the objective was to assist GoP to strengthen the
implementation of its Temporary Displaced Person- Emergency Recovery Project (TDP-
ERP) by establishing fifteen (15) state of the art One Stop Shop (OSSs) in the merged area of
KP (erstwhile FATA Region).
The program consists of three components.
i. Component-I, is the Early Recovery Grant (ERG) for TDPs, disbursement of cash
grants to eligible households in four installments through the commercial banking
system.
11. Component-2, relates to disbursement of Child Wellness Grant (CWG) and promotion
of child health in selected areas of FATA,
iii. Component-3, is a Technical Assistance (TA) Component for strengthening program
management and oversight.
The third component is allocated to the Implementing Entity i.e. NADRA, for the
establishment and operations of OSSs.
2
Upon successful completion of establishment and operations of OSSs, the stake
holders of the program decided to enhance the scope of the program by introducing the
concept of Citizen Facilitation Centers (CFCs) in the Merged Area of KP (Region), where in
addition to the program Component-I and Component-2, enhance the citizen centered service
delivery in tribal districts of KP. In this regard, it was decided to convert existing 15 OSSs
into state of the art CFCs and in addition to establish 28 additional CFCs in the region (12 in
all Tribal Districts of KP and 16 in Southern Districts (D.1 Khan, Tank, Lakki Marwat &
Bannu). Further World Bank has disbursed the said funds of US$ 7.633 million via State
Bank of Pakistan dated 24.08.2021 in project assignment account No. 4154516473
maintained with NBP main Civic Center Melody Branch Islamabad. Further, funds of Rs.
1,362.458 million (US$ 5,756,664) were provided by the EAD (after receipt from IDA) vide
its letter dated April 18, 2023 and released by SBP vide is letter dated 20.09.2022 for the
Financial year 2022-23. Furthermore, funds of Rs. 862.806 million (US$ 3,103,023) were
reimbursed by NADRA on 15.05.2024 and Funds of Rs. 206.318 million were blocked in
NADRA Bridge Finance.
OBJECTIVES OF TDP-ERP
The main objective of the Temporarily Displaced Persons Emergency Recovery
Project (TOP-ERP) is to provide Livelihood Support Grant (LSG) and Child Wellness Grant
(CWG) to all beneficiaries, after applying the approved business rules, ensure beneficiaries
comply with the complete schedule of Health Awareness Session (HAS) child (1st & 2nd)
wellness session for parents of children under the age of 2 years and provide NADRA related
services under one roof.
The general objectives are following:
Support early recovery of families affected by Militancy crisis through Cash grants i.e.
i.
LSGandCWG
ii. Promote Child Health & Wellness
iii. Enhance Citizen-Centered service delivery and mechanism.
Furthermore, Component 3 i.e. TA Budget bifurcation between Authority and
Economic Affairs Division (EAD) is as follows:
S.# Agreement Description Agreement# Allocated TA
Component-3 (USD) Total
NADRA EAD (USD)
Share Share
I. Original Agreement dated 23- IDA Loan# 5719-PK 5,500,000 2,500,000 8,000,000
Sept-15
2.
st
l Additional Finance Agreement IDA Loan# 6139-PK 2,300,000 - 2,300,000
dated 02-OCT- l 7
3. 2" 0 Additional Finance Agreement MDTF Grant# TF0B00 l 0-PK 6,346,000 153,700 6,500,000
dated 06-Sept- l 9
4. Extended Period Budget-2020, IDA Loan # 6139-PK EAD 2,000,000 - 2,000,000
Re-Allocation Released by EAD sanction letter dated Jan-21
5. Extended Period Budget-2022, IDA Loan # 6139-PK EAD 3,647,000 1,986,000 5,633,000
Re-Allocation Released by EAD sanction letter dated Jun-21
6 Extended Period Budget-2022, IDA Loan # 6139-PK EAD 5,757,000 - 5,757,000
Re-Allocation Released by EAD sanction letter dated Apr-23
7 Extended Period Budget-2023, IDA Loan # 6139-PK EAD 5,884,000 542,000 6,426,000
Re-Allocation Released by EAD sanction letter dated Sep-2024
Grand Total 31,434,000 5,181,700 36,616,000
Note: We have audited Extended Period Budget-2023-24, Released by EAD and State Bank of Pakistan for the financial year 2023-24.
3
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AUDITOR'S REPORT TO THE MANAGEMENT (Audit Opinion)
Audited Government Partner: NADRA
Period covered by the audit: 01.07.2023 to 30.06.2024
Commencement Date: 23.09.2015
Date of Completion: 30.06.2025
Name and title of the Program Federally Administered Tribal Areas
/ project: Temporarily Displaced Persons-Emergency
Recovery Project (FATA TDP-ERP) under loan
No. IDA 6139PK
Report on the NADRA - FATA TDP-ERP Project
We have audited the Sources and Usage of Funds Statement for the year ended 30
June 2024 from NADRA Temporarily Displaced Persons - Emergency Recovery Project
reflecting cash receipts and disbursements for the Component-3 of the FATA TDP-ERP
under loan No. 6139PK.
Management's Responsibility
Preparation and fair presentation of the Financial Statement is prime responsibility of
the Project Management of NADRA.
Auditor's Responsibility
Our responsibility is to express an opinion on the accompanying statement based on
audit. Audit was conducted in accordance with International Standards on Auditing (ISA).
These standards require that we plan and perform the audit to obtain reasonable assurance
whether the financial statements are free from material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statement. We believe that audit provides a reasonable assurance for opinion.
Audit Opinion for the Financial Year 2023-24
In our opinion, the above mentioned accompanying statements present fairly, in all
material respect, the receipts collected and expenses paid by the NADRA during the year
ended 30th June, 2024 in accordance with cash receipts and disbursements basis for the final
reporting.
4
Disclaimer of Opinion for the financial years 2015-16 to 2019-20
Because of the significance of the matter described in the basis for disclaimer of
opinion paragraph, we have not been able to obtain the audited financial statements in respect
of the funds/loans received by the NADRA for the FATA-TDP-ERP in the financial year
2015-16 to 2019-20. Accordingly, we do not express an opinion on these financial
statements.
Basis for Disclaimer of Opinion
The project of FATA-TDP-ERP was initiated w.e.f. September 23, 2015 in
accordance with the provisions of the loan No. IDA-5719PK and loan No. IDA-6139PK. The
Sources and Usage of the Funds Statements for the years prior to 2020-21 were not certified
by this office earlier and the management also did not provide any financial information of
the project for this period during the currency of this audit, hence we are not in a position to
offer our opinion on the state of affairs of that period.
Dated: , 2024
Place: Islamabad (Director General CA&E, North)
5
FINANCIAL STATEMENTS
6
NATIONAL DATABASE AND REGISTRATION AUTHORITY
TEMPORARILY DISPLACED PERSONS - EMERGENCY RECOVERY PROJECT
SOURCES AND USAGE OF FUNDS STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
2024 2023
Note ---------Pak Rupees---------
Opening Designated Account Balance
Add:
Funds Inflow:
Receipts from World Bank 1,725,516,539 1,362,458,452
NADRA bridge finance 3 199,395,632
1,924,912,171 1,362,458,452
Total funds available 1,924,912,171 1,362,458,452
Less:
Funds utilized for:
Project Management Cost 4 956,526,633 1,056,310,672
Equipment and office facilities 5 105,675,238 256,231,376
Adjusted against NADRA bridge finance 3 49,916,404
Total funds utilized 1,062,201,871 1,362,458,452
Closing Designated Account Balance 11862,110,30g
The annexed notes form an integral part of these financial statements.
- Sd-
-Sd-
DIRECTOR FINANCE PROJECT DIRECTOR
NADRA NADRA
7
NATIONAL DATABASE AND REGISTRATION AUTHORITY
TEMPORARILY DISPLACED PERSONS - EMERGENCY RECOVERY PROJECT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
1 LEGAL STATUS AND NATURE OF OPERATIONS
National Database and Registration Authority (NADRA), ("the Authority") was
established on 10 March 2000 by the Government of Pakistan under the National Database
and Registration Authority Ordinance 2000 ("the Ordinance") by merging the National
Database Organization (NDO) and the Directorate General of Registration (DGR). The
principal office of the Authority is situated at State Bank of Pakistan building, Shahrah-e-
Jamhuriat, G/5-2, Islamabad, Pakistan.
The purpose and object of the Authority is to formulate and implement policies and
plans for the development and establishment of an improved and modernized system of
registration in the country, broadening of the registration base to bring within its purview all
persons and things, wherever they may be, to the extent and in the manner laid down in the
Ordinance; and establishment and maintenance of multi-purpose databases, data
warehousing, networking, interfacing of databases and related facilities and services.
1.1 NATURE AND STATUS OF PROJECT
National Database and Registration Authority (the Authority) entered into a project
implementing agreement with International Development Association (IDA) on 23
September 2015 pursuant to a Financing Agreement between the Government of Pakistan
(GoP) and IDA. Under this agreement, the objective was to assist the GoP to strengthen the
implementation of its Temporary Displaced Person-Emergency Recovery Project (FATA-
TDP ERP) by establishing fifteen (15) state of the art One Stop Shop (OSSs) in the merged
area of KP (erstwhile FATA Region). The program consists of three components.
Component-1, is Early Recovery Grant (ERG) for TDPs, disbursement of cash grants to
eligible households in four installments through the commercial banking system.
Component-2, relates to disbursement of Child Wellness Grant (CWG)and promotion of
child health in selected areas of FATA, while Component-3, is a TA Component for
strengthening program management and oversight. The third component is allocated to the
Implementing Entity (NADRA) for the establishment and operations of OSSs. The note 4 and
5pertains to Component-3 and does not cover the other activities of the Program and/or the
Authority.
Project closing date is 30 June 2025. Total project TA budget allocated to NADRA is
USD 30.191 million, including USD 5.757 million for the project operations for the FY
2022-23 (FY ended 30 June 2023).
8
\I
1.2 NADRA BRIDGE FINANCING ARRANGEMENT
In pursuance of the project stringent timelines, NADRA was directed by the project
Stake Holder to commence project operations (establishing OSSs and allied expenditures)
immediately after conceiving and approval of the Project, without waiting contract signing
and funds disbursement by the Banks. NADRA commenced & executed project operations
from its own resources under NADRA Bridge Financing Arrangements and the same will be
reimbursed to NADRA, directly from World Bank into NADRA account or as soon as
project funds transferred/disbursed in project Designated Assignment Account. This practice
is being followed and during the period of funds scarcity or when funds are exhausted,
project expenditures are met out by NADRA to ensure for the smooth and un interrupted
project operations. This bridge financing is reimbursed as soon as project funds
available/arranged by the Apex Body or the Bank.
2 BASIS OF PREPARATION
This Statement has been prepared to meet the financial reporting requirements agreed
with ID A under the cash basis of accounting except for accruals as stated in note 3.1, 4 .1 and
4.2 to this Statement.
2.2 TRANSLATION
Amount received in US dollars is deposited in the separate designated bank account.
The State Bank of Pakistan disbursed the same in designated account converts the amount
received in US dollars to Pak rupees at the rate prevailing at the date of receipt and this
amount is recognized as receipt in the Sources and Usage of Funds Statement.
9
NATIONAL DATABASE AND REGISTRATION AUTHORITY
TEMPORARILY DISPLACED PERSONS - EMERGENCY RECOVERY PROJECT
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2024 2023
Note ---------Pak Rupees---------
3 NADRA BRIDGE FINANCE FACILITY
Opening balance 6,923,213 56,839,617
Activity during the year 199,395,632 (49,916,404)
206,318,845 6,923,213
4 PROJECT MANAGEMENT COST
Human resources cost 4.1 782,225,449 675,785,048
OSSs operating cost 156,933,186 362,022,549
Professional services 4.2 17,367,998 18,503,075
956,526,633 1,056,310,672
4.1 Human Resources Cost
Staff salaries and allowances 709,129,194 626,596,171
Individual consultants remuneration 73,096,255 49,188,877
782,225,449 675,785,048
4.2 Professional Services
Operational review 17,367,998 18,503,075
17,367,998 18,503,075
5 EQUIPMENT AND OFFICE FACILITIES
Equipment 8,683,843 131,997,955
Furniture and fixtures 1,236,955 41,246,539
Site establishment / renovation 95,754,440 82,986,882
105,675,238 256,231376
6 GENERAL
Figures have been rounded to nearest Rupee.
-Sd- -Sd-
DIRECTOR FINANCE PROJECT DIRECTOR
NADRA NADRA
10