OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT I) KERALA, THIRUVANANTIAPURAM-695 001 SUPREME AUDIT INSTITUTION OF INDIA Dedicated to Truth in Public Interest No. AMG II(HQ)IV/I/5-4/NHP /2024-25/ 0--,- Dated: 04/12/2024. To e Chief Engineer, T e Director Investigation & Design (IDRB), G und Water Department, Water Resources Department, Jal Vijnana Bhavan, Vikas Bhavan, Am alamukku, Kowdiar (P.O.) Thiruvananthapuram 695 033. Thir vananthapuram 695 003 Sub: Audit Report on the accounts of World Bank assisted National Hydrology Project (Surface Water component and Ground Water component) Loan.No.8725 IN- for the year 2023-24 - forwarding of. Sir, The Audit Report on the Project Financial Statements of the World Bank assisted National Hydrology Project (Surface Water component and Ground Water component-Revised) for the year 2023-24 is forwarded herewith. A Management Letter on internal control is being issued separately. Yours faithfully, (SURESHKUMAR S) Deputy Accountant General(AMG-II)/Audit-I Copy to: 1. The cretary, Depart nt of Economic Affairs, Ministry of Finance, Governme t of India, New Delhi. 2. The Director neral (PPG,SMU &Co-ordination) Office of the Co troller and Auditor General of India, Pocket 9, Deendaya Upadhyay Marg, New Delhi - 110124. (SURESHKUMAR S) De uty Accountant General(AMG-II)/Audit-I -tf / Email agaukeralal@cag.gov.in *w / Fax : 0471 - 2331326 ifei#lT / Telephone: 0471 2330799 AUDIT REPORT ON THE PROJECT FINANCIAL STATEMENTS OF NATIONAL HYDROLOGY PROJECT LOAN No. 8725-IN (SURFACE WATER COMPONENT AND GROUND WATER COMPONENT (REVISED)) FOR THE YEAR ENDED 31 MARCH 2024 We have audited the accompanying financial statements of the National Hydrology Project financed under World Bank Loan No. 8725- IN which comprise the Statement of Sources and Applications of Funds, and Reconciliation of Claims to Total Applications of Funds for the year ended 31 March 2024. 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 applications of funds of National Hydrology Project for the year ended 31 March 2024 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 the ineligible expenditures as detailed in the audit observations appended to this audit report, expenditures are eligible for financing under the Loan/Credit Agreement. During the course of the audit, SOEs for Z3.06 crore for Surface Water Component and Z6.57 crore (including prior period adjustment Z0.04 crore) for Ground Water Component and the connected documents were examined and these can be relied upon to support reimbursement under the Loan/Credit Agreement. This report is issued without prejudice to CAG's right to incorporate the audit observations in the Report of CAG of India for being laid before Parliament/State Legislature. Thiruvananthapuram. (SURESHKUMAR S) 04 December 2024. Deputy Accountant General (AMG-II) Appendix Audit Observations NIL Thiruvananthapuram. (SURESHKUMAR S) 04 December 2024. Deputy Accountant General (AMG-II) Statement of Sources and Application of Funds Name of Agency State Groundwater Department, Kerala Name of Project National Hydrology Project (Central Sector Scheme) Loan/credit/Grant No. Grant-in Aid for Kerala G (L.N. 8725-IN for MoWR Reports for the year ended 1st April -2023 to 31St March 2024 Rs. (in thousands) Particulars Current Year Previous Year Project to date (2023-2024) (2022-2023) Opening Balance, (If cash balance are 45166.725 15985.842 controlled by the entity) (A) Funds received from Government through Budget (These will include external assistance received by the Government for the Project) Funds received directly by Project implementing Authority t hrough external 30,464.00 76300 178364 assistance Beneficiary Contribution (if any) Interest 503.155 884.188 4431.469 Total Receipts (B) 30967.155 77184.188 182795.469 Total Sources (C=A+B) 76133.88 93170.03 182795.469 Expenditure by Component A. 55612.52 38744.676 134697.218 B. 171.531 275 794.888 C. 4965.088 1504.871 14540.456 D. 4543.71 6533.673 18414.08 Total Expenditure (D) 65292.851 47058.22 168446.642 Adjustment in respect of earlier period 426.532 - - (2021-22) (Da) Total Expenditure claimed 2023-24 65719.383 Other payments(Interest remitted to 839.933 945.085 4347.73 GOI)(E) 839.933 945085434.7 Closing Balance, (if cash balance are 10001.096 45166.725 10001.096 controlled by the entity) (C-(D+E)) 4Of ft4j. t Senior mance Officer Director Groundwater Department & Groundwater Department & Accounts Office (NHP) Co-ordinator- NHP A' 云‘ National Hydrology Project Groundwater Department Government of Kerala 3rd Floor Jalavi nanaBhava-n, Ambalamukku, Kowdiar, 695003 NRP Mail ID: gwdkerala(q)gmail.com, hp2hisggmail.com, Phone: 0471 2434098 Date: 30/10/2024 Management Assertion Letter To TheAccountant General, Kerala Thiruvananthapuram-01 Sir, This assertion letter is provided in connection with your audit of the financial statement of the National Hydrology Project (Central Sector Scheme with 100% Grant-in- aid from MoWR& RD & GR, Govt. of India) for the year ended 31" March 2024. We acknowledge our responsibility for the fair presentation of the financial statement in accordance with the cash basis of accounts followed by the Government of India, and we confirm, to the best of our knowledge and belief, the following representations made to you during your audit. " The project financial statement are free of material misstatements, including omissions. " Project expenditures are eligible for financing under the loan / credit the agreement. " There have been no irregularities involving management or employees who have a significant role in internal control or that could have a material effect on the project financial statements. " We have made available to you all books of accounts and supporting documentations relating to the project. " The project has complied with the conditions of all relevant legal agreements including the financing, agreement, the project agreement, the project appraisal documents, minutes of Negotiations and Borrower's project implementation Plan. cx Senior Finance Officer Director Groundwater Department & UND Groundwater Department & Accounts Office (NHP) Co-ordinator- NH Z) 文寧云 Adjustments in respect of earlier period Amount Disallowed during 2021-22 claimed during the year 2023-24 Name of Agency State Groundwater Department, Kerala Name of Project National Hydrology Project (Central Sector Scheme) Loan/credit/Grant No. Grant-in Aid for Kerala G (L.N. 8725-IN for MoWR Reports for the year ended V April -2023 to 3 1 ' March 2024 Amount (Rs.000) SI.No Initial Year of Head of Expenditure Amount expenditure 1 426.532 2021-2022 D3.2.01 "Operation and Recurring cost of SPW ", Electricity charges paid for Jalaviinana Bhavan yvm bo to Senior Finance Officer Director Groundwater Department & Groundwater Department & Accounts Office (NHP) Co-ordinator- NHP VER U. 0 � �+. г ` s Reconciliation of Claims to Total Application of Funds Name of Agency State Groundwater Department, Kerala Name of Project National Hydrology Project (Central Sector Scheme) Loan/credit/Grant No. Grant-in Aid for Kerala G (L.N. 8725-IN for MoWR Reports for the year ended I st April -2023 to 3 1 " March 2024 Amount (Rs.000) Sche Current Previous Project to date Remarks dules Year Year 2023-2024 2022-23 Nil Nil Nil Bank Funds claimed during the year (A) 65292851 47058.219 168446.642 NIP is being Total Expenditure made during the year (B) 65292851 47058.219 168446.642 implemented as Nil Nil Nil a Central Sector Less: Outstanding AC Bills (C) Scheme with Ineligible expenditure (D) Nil Nil Nil 100% Grant-In aid from the Expenditures note claimed (E) Nil Nil Nil Ministry of Water Resources. Total Eligible Expenditures Claimed RD&GR Govt. (F)=(B)-(Q-(D)-(E) 65292851 47058.219 168446.642 of India World Bank Share @ x% of (F) above (G) Senior Finance OfficerDirector Groundwater Department & Groundwater Department & Accounts Office (NHP) Co-ordinator- NHP 0 0,01