~ littici&Ic61'{ ( cl&I4-0ffl) OFFICE OF THE PRINCIPAL ACCOUNTANT GENERAL (AUDIT) q;I c6I4fcl4 ANDHRAPRADESH, VIJAYAWADA-520 002. 3IPQ ~~I, fctut4cll'51 - 520 002. PAG(Au)/AP/AMG-JJ/APJJATP-FY24/100-2024/ f;' g S To The State Project Director, AP Integrated Irrigation and Agriculture Transformation Project (APIIATP) Water Resources Department, 3rd Floor, Vyshya Bhavan, Hanumanpet, Vijayawada - 520 003. Sub: Audit Certificate and Audit Report in respect of World Bank assisted "A ndhra Pradesh Integrated Irrigation and Agriculture Transformation project (APIIA TP)" financed under IBRD/World Bank Loan No.8910-IN for the year 2023-2-t, -reg. Sir, I am to forward herewith the Audit Report of Comptroller and Auditor General of India and Audit Certificate for the year 2023-2-t along with the following documents in respect of World Bank/IBRD assisted "Andhra Pradesh Integrated Irrigation and Agriculture Transformation project (APllATP)" financed under IBRD/ \Vorld Bank Loan No.8910-IN. 1. Statement of Expenditure incurred, verified, ineligible and admitted (Annexure-A) 2. Statement showing ineligible /disallowanccs made in Audit (Anncxurc-B) 3. Statement of previous years' disallowances allo\\'ed in 2023 -24 (Annexurc-C) 4. Management Letter containing deficiencies in internal controls. Receipt of the above-mentioned documents may please be acknowledged. Encl: As above. Yours faithfully, Deputy Accountant General/ AMG-11 Copy to: (without enclosures) 1. The Secretary, Government of India, Ministry of Finance, Department of Economic Affairs, Room No 39-B, North Block, New Delhi- I 10001 for information 2. The Principal Secretary to the Government of AP, Finance (PMU) Department, AP Secretariat, Velagapudi - 522503, Guntur District, Andhra Pradesh Address : 8th Floor, Stalin Central Mall, M.G. Road, Governorpet, Vijayawada _ 520 002 Website: www.cag.gov.in/ag/aodhra-pradesh/en e-mail : agauandhrapradesh@cag.gov.i~ mwi li~tc.\~tchI-< (c.\&1q~lm) Ol·TICE OF'TIIE PRINCIPAL .,\CCOUNTA;\T GE:\F:RAL (,\UOIT) 'ch1 cht4fcl4 r\N()IIIU 1%\()ESII, \'I.J,\Y;\\\'ADA-520 002. JlR! ~~1, fctvt4<1(-S[ - 520 002. PAG(Au)/AP/AMG-ll/APIIATP-FY24/l 00-2024/ 58.t!. Date: I l?.03.2025 AUDIT CERTIFICATE The Expenditure Statement/Financial Statement relating to the Project "Andhra Pradesh Integrated Irrigation and Agriculture Transformation project (APIIATP) financed under IBRD Loan No. 8910-IN for the year 2023-24 attached hereto have been audited in accordance with the regulations and the standards of audit of the Comptroller and Auditor General of India and accordingly included such tests of accounting records, internal checks and controls and other auditing procedures necessary to confirm a) that the resources were used for the purpose of the project; and b) that the expenditure statements/financial statements are correct During the course of the audit referred to above, Statement of Expenditure (SOE) for an amount oft44,58,21,818/- and the connected documents were examined, and these can be relied upon to support reimbursement under the aforesaid loan/credit agreement. On the basis of the information and explanations that have been obtained as required and according to the best of our information as a result of the test audit it is certified that the Expenditure Statements/Financial Statements read with the observations set out below represent a true and fair view of the implementation (and operations) of the project for the year 2023-24. This certificate is issued without prejudice to C&AG's right to incorporate any further/detailed audit observations if and when made in the Report of C&AG of India for being laid before Parliament /State Legislature. (Narendra V Nikhila) Deputy Accountnnt General/ AMG-11 m in51c-1a1ct>1~ (c-1a1q4)m) orr!CE OF TIIE PRINCIPAL q)J cf>l4fc14 ACCOUNTANT GE\EIUL (AUDIT) A~DII RA PIWlESII, \'I.JAY,\\\'.-\[)A-520 002. 3lRI ~~T. fclvi437 WRD Vizianagaram A {35,046 GST paid to suppliers/contractors 598 2023-206885 WRD Vizianagaram A {27,153 GST paid to suppliers/contractors 599 20 1 3-206883 WRD Vizianagaram A { 19,224 GST paid to suppliers/contractors 600 2023-1804529 WRD Vizianagaram A { 8,766 GST paid to suppliers/contractors 601 2023-1804 797 WRD Vizianagaram A { 3,960 GST paid to suppliers/contractors 602 20 1 3-1798679 WRD Vizianagaram A ~ 3,906 GST pai d to suppliers/contractors 603 2023-1804 708 WRD Vizianagaram A {3,780 GST paid to suppliers/contractors 604 2023-1 802806 WRD Vizianagaram A { 3,348 GST paid to suppliers/contractors 605 2023-207389 Horticulture Tirupathi B {4,098 GST paid to suppliers/contractors 606 2023-207339 Agriculture Tirupathi B { 1,505 GST paid to suppliers/contractors 607 2023-1592317 Agriculture Tirupathi B { 12,920 GST paid to suppliers/contractors 608 2023-1592192 Agriculture Tirupathi n { 10,899 GST paid to suppliers/contractors 609 2023-1785879 Agriculture Ongole B { 7,049 GST paid to suppliers/contractors 610 20?3-1794481 Agriculture . Ongole B {4,455 GST paid to suppliers/contractors 611 2023-202441 Fisheries Ongole B { 3,861 GST paid to suppliers/contractors 612 2023-2893 Horticulture Nellore B { 3,828 GST paid to suppliers/contractors 613 2023-448761 Horticulture Nellore B { 3,828 GST paid to suppliers/contractors 614 2023-646505 Horticulture Nell ore B { 3,828 GST paid to suppliers/contractors 615 2023-877589 Horticulture Nellore B { 3,828 GST paid to suppliers/contractors 616 2023-4452 Horticulture Ongole B { 3,828 GST paid to suppliers/contractors 617 2023-397229 Horticulture Ongole B { 3,828 GST paid to suppliers/contractors 618 2023-628476 Horticulture Ongole B ~ 3,828 GST paid to suppliers/contractors Page 26 of 27 I • • .. • -- - ·- • "' SI. CFI\IS Bill Department Division Component Ineligible Reasons No. in Project expenditure(~) 619 2023-841256 Horticulture Ongole B ~ 3_i::2s GST paid to suppliers/contractors 620 2023-206139 Agriculture Chittoor B ~ 10.963 GST paid to supplkrs/contractors 621 2023-1680367 Agriculture Chittoor 0 ~ 41,877 GST paid to supplkrsh:ontractors 622 2023-170 I402 Agriculture Chittoor [3 ~ 2-l.-W0 GST paid to suppliers/contractors 623 2023-205675 Agriculture Ncllore [3 ~ -l. I 9-l GST paid to suppliers/contractors 624 2023-205674 Agriculture Ncllorc [3 ~ 3.5-l0 GST paid t0 suppliers/contractors 625 2023-205676 Agricu lturc Ncllorc 0 ~ 1.4S5 GST paid to suppliersfr l)ntral'tors Total t 10,20, 1-t, I 29 Jv]~ lkputy Art·o1111ta11t Gt:11cral / AMG-11 Page 27 of 27 .. Annexurc- C Statement showing the details of ineligible expenditure incurred during the previous years now allowed as elig ible expenditure, if a ny, during the year 2022-23 in respect of Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project (APIIATP) - Loan No.8910 - IN finan ced by World Bank/lBRD Financial Year 2017-18: SI. N o. Name of the Unit Year of the Component Nature of Para No. Amount A mount Balance disallowance Disallowance disallowed released disallowance now I EE Irri gation 201 7-1 8 A EMD/FS D is not IV { 64,768 {0 { 64,768 Division, Ongole fi nal expenditure 2 EE Irrigation 201 7- 18 A EMD/FSD is not IV { 15,700 {0 { 15,700 Division, Chi ttoor final expend iture 3 PMU , APilA TP 201 7-1 8 D Taxes recovered V { 256 {0 { 256 fo r suppl ies Total t 80,724 t o t 80,724 (2017- 18) Fin ancial Year 2018-19: SI. No. Name of the Unit Year of th e Component Na ture of Para No. A mount Amount Balance disallowa nce Disallowance disallowed released disallowance now 1. O/o The EE, 201 8-19 A EMD/FSD is not IV { 52,885 {0 z 52,885 Irrigation Dvision, final expenditure Atmakur 2. PMU , APHA TP 201 8-1 9 D Taxes recovered V z 2 1,8 I 7 {0 z 2 1,8 17 fo r supplies 3. O/o The EE, 201 8-1 9 D Taxes recovered V { 995 zo { 995 Irrigati on Division, for supplies Chittoor Page 1 of 11 Statement showing the details of ineligible expenditure incurred during the previous years now allowed as eligible expenditure, if any, during the year 2022-23 in respect of Andhra Pradesh Integrated Irrigation and Agriculture Transformation Project (APJIATP) - Loan No .8910 - IN financed by World Bank/IBRD Total (2018-19) r----= t 75,697 c-· lt 0 t 75,697 Financial Year 2019-20: SI. No. Name of the Unit Year of the Component Nature of Para No. Amount Amount Balance disallowance Disallowancc disallowed released disallowance now 1. EE Irrigation 2019-20 A Expenditure not I z 1,53,972 z0 < 1,53,972 Division,Chittoor related to APIIATP 2. EE Irrigation 2019-20 A EMD/FSD is not IV z 1,96,089 zo < 1,96,089 Division,Cl1ittoor final expenditure 3. EE IB Division, 2019-20 A Excess payment II z 3,16,326 zo <3,16,326 Penugonda due to incorrect (Ananthapuramu) calculation 4. EE M.l. Division, 2019-20 A EMD/FSD is not IV <43,313 <'0 <43,313 Nandyala (Kurnool) final expenditure 5. EE Irrigation 2019-20 A EMD/FSD is not IV <7,49,893 <7,49,893 z0 Division, Ongole final expenditure (Prakasam) 6. EE Irrigation 2019-20 A EMD/FSD is not IV <2,10,000 z0 <2,10,000 Division, Atmakuru final expenditure (Nellore) 7. Director of Ground 2019-20 A EMD/FSD is not IV <5,444 <5,444 z0 water, Ananthapur final expenditure Page 2 of 11 Fin ancial Year 20 19-20: SI. No. Name of the Unit Y('ar of the Component Nature of Pam No. Amount Amount Balance disallowancc Disa llowa ncc disnllowcd released disallowance now 8. Director of Ground 2019-20 A EMD/FSD is not IV t 34,802 to t 34,802 water, Ongolc final expenditure (Praka~am) 9. A.O., Horticulture, 2019-20 B Failed VI z 88,242 zo z 88,242 Ongolc (Prakasam) Transactions 10. D.D., Horticulture, 20 19-20 B Fai led VI z 15,000 zo z 15,000 Ananthapuram Transactions 11. A.O., Honiculture, 2019-20 B Failed VI z31,110 zo z31,110 Visakhapatnam Transactions 12. PMU, APilA TP 2019-20 D Expenditure I z 47,363 zo z 47,363 towards vehicles not related to APJTATP 13. PMU, APIIATP 2019-20 D Expenditure III z 12,14,293 zo z 12,14,293 towards rent & electricity charges without proper sanction for APIIATP 14. PMU, APIIA TP 20 19-20 D Taxes recovered V zS,717 zo z 5,717 for supplies 15. EE Irrigation 20 19-20 D Taxes recovered V z 9,995 zo ~ 9,995 Division, Atmakuru for suppl ies (Nell ore) 16. EE Irrigation 2019-20 D Taxes recovered • V ~ 9,967 zo ~ 9,967 Division, Chittoor for supplies Page 3 of 11 Financial Year 2019-20: SI. No. Name of the Unit Year of the Component Nature of Para No.- Amount Amount Balance disallowance Disallowance disallowed released d isallowan ce now 17. EE lITigation 2019-20 D Taxes recovered V < 6,082 <0 < 6,082 Division, Kadapa for supplies 18. EE Inigation 2019-20 D Taxes recovered V <6,056 <0 < 6,056 Division, Ongole for supplies (Prakasam) 19. EE Irrigation 2019-20 D Taxes recovered V < 6,056 <0 < 6,056 Division, Eluru (West for supplies Godavari) 20. EE SMI Division, 2019-20 D Taxes recovered V < 3,381 <0 < 3,381 Visakhapatnam for supplies 21. EE YI Division, 2019-20 D Taxes recovered V <4,274 <0 < 4,274 Peddapuram (East for supplies Godavari) Total (2019-20) t 31,57,375 t 7,55,337 t 24,02,038 Financial Year 2020-21: SI. No. Name of the Unit Year of the Component Nature of Para No. Amount Amount Balance disallowance Disallowance disallowed released disallowance now 1. O/o the EE, Irrigation 2020-21 A EMD/FSD is not II <5,53,335 <5,53,335 <0 Division, Ongole, final expenditure Prakasam Page 4 of 11 ,. Financial Year 2020-21: SI. No. Name of the Unit Year of the Component Nature of Para No. Amount Amount Balance disallowance Disallowance disallowed released disallowance now 2. O/o the Dy. Director, 2020-21 A EMD/FSD is not II < 31 ,016 <0 <31,016 Ground Water final expenditure &Water Audit Dept, Prakasam 3. O/o the EE, MI 2020-21 A EMD/FSD is not II <3,31,253 <0 < 3,31,253 Division, Nandyala, final expenditure Kumool 4. O/o the EE, LB. 2020-21 A EMD/FSD is not II < 2,15,286 <0 <2,15,286 Division, Penukonda, final expenditure Ananthapuram 5. O/o the EE, Irrigation 2020-21 A EMD/FSD is not II <4, 17,481 <0 < 4,17,481 Division, final expenditure Vizianagaram 6. O/o the DD, Ground 2020-21 A EMD/FSD is not II <6,016 <0 <6,0 16 Water & Water Audit final expend iture Dept, Vijayawada, Krishna 7. O/o the EE, Irrigation 2020-21 A Expenditure III <2,03,093 <0 < 2,03,093 Branch, YSR Kadapa towards Labour Cess Page 5 of 11 Financial Year 2020-21: SI. No. Name of the Unit Ye:1 r of the Component Nature of Para No. Amount Amount Balance disallowance Disallowance disallowed released disallowance now 8. O/o the EE, l1Tigation 2020-21 A Expenditure III { 1,47,114 {0 { 1,47,114 Branch, towards Labour Visakhapatnam Cess 9. O/o the EE, Irrigation 2020-21 A Expenditure III { 1,44,849 {0 < 1,44,849 Branch, Eluru, West towards Labour Godavari Cess 10. O/o the DD, 2020-21 B Absence of I < 6,00,000 <0 < 6,00,000 Horticulture, Purchase Vouchers Vizianagaram for Fertilizers 11. O/o the AD, 2020-2 1 B Absence of I < 3,75,000 <0 < 3,75,000 Horticulture, Purchase Vouchers Srikakulam for Fertilizers 12. O/o the AD, 2020-21 B Absence of I < 6,64,629 <0 < 6,64,629 Horticulture, Eluru Purchase Vouchers and Jangareddigudem, for Fertilizers West Godavari 13. O/o the DD, 2020-21 B Failed V < 18,000 <0 < 18,000 Horticulture, YSR Transactions Kadapa 14. O/o the AD, 2020-21 B Failed V < 18,000 <0 < 18,000 Horticulture, Kumool Transactions Page 6 of 11 . Financial Y car 2020-21: SI. No. Name of the Unit Year of the Component Nature of Para No. Amount Amount Balance disallowance Disallowance disallowed released disallowance now 15. O/o the DD, 2020-21 B Failed V < 13,065 <0 < 13,065 Horticulture, Transactions An:mthapuram 16. O/o the AD, 2020-21 C Absence of IV < 3,67,200 < 3,67,200 <0 Ho1ticulture, Nellore Vehicle Number/ Logbook Details/Details of Journey Performed & Same Cash Bill No. for two vouchers Total (2020-21) f 41,05,337 f 9,20,535 f 31,84,802 Financial Year 2021-22: Amount Year of the Natm·e of Amount Balance SI. No. Name of the Unit Component Para No. released disallowance Disallowanee disallowed disallowance now Avoidable 1. WRD, Nellore 2021-22 A II < 7,13,89 1 <0 < 7,13 ,891 Inflation of Works EMD/FSD 2. WRD, Prakasham 2021-22 A I < 6,26,171 < 6,18,953 < 7,218 withheld as deposit EMD/FSD 3. WRD, Nellore 2021-22 A I < 18,76,123 <0 < 18,76,123 wi thheld as deposit EMD/FSD 4. WRD, Kurnool 2021-22 A withheld as deposit I <64,548 zo <64,548 EMD/FSD 5. WRD, Kadapa 2021-22 A withheld as denosit I < 4,27,294 <0 <4,27,294 Page 7 of 11 Financial Year 2021-22: Amount Year of the Nature of Amount Balance SI. No. Name of the Unit Component Para No. released disallowance Disallowance disallowed disallowance now EMD/FSD < 13,225 6. WRD, Anantapuramu 2021-22 A I < 13,225 <0 withheld as deposit EMD/FSD with 7. G\VD, Krishna 2021-22 A I < 17,069 <0 < 17,069 held as deposit EMD/FSD < 25,194 8. GWD, West Godavari 2021-22 A I < 25,194 <0 withheld as deposit Not pertains to 9. Agriculture, Chittoor 2021-22 B III < 3,000 <0 < 3,000 APIIATP 10. WRD, Anantapuramu 2021-22 D Belongs to APILIP III < 32,000 <0 < 32,000 Fertilizers Subsidy < 11. WRD 2021-22 B to farmers not V < 2,82,98,463 <0 2,82,98,463 covered by PIP Total t 3,20,96,978 t 6,18,953 t 3, 14,78,025 Financial Year 2022-23: Nature of Amount Year of the Amount Balance Name of the Unit Component Para No. released disallowance Disallowance disallowed disallowance SL. No. now EMD/FSD retained Kumool B < 56,979 1 2022-23 with APIIA TP I <0 < 56,979 EMD/FSD retained Nell ore 2022-23 B with APIIATP I t 49,836 2 <0 < 49,836 EMD/FSD retained 3 Srikakulam 2022-23 A with APIIATP I t 7,985 <0 < 7,985 Page 8 of 11 Financial Year 2022-23: Amount Year of the Nat ure of Amou nt Balance Name of the Unit Component Para No. released disallowance Disallowance disallowed disallowance SL. No. now EMD/FSD retained Anantapuram A t 1,63,166 4 2022-23 with APIIA TP I zo z 1,63,166 EMD/FSD retained 5 Kurnool . 2022-23 A with APIIA TP I t 14,49,103 z 10,54,157 z 3,94,946 EMD/FSD retained Kadapa A {0 6 2022-23 with APIIA TP I t 6,55,953 { 6,55,953 EMD/FSD retained East Godavari A 7 2022-23 w ith APIIATP I t 3,82,138 {0 { 3,82,138 EMD/FSD retained Nellore A t 13,35,714 {0 z 13,35,714 8 2022-23 w ith APIIATP I GST amount paid Nellore B f 35,117 9 2022-23 to contractors II z0 {35,117 GST amount paid 10 Kumool 2022-23 B to contractors II z 2,64,508 zo { 2,64,508 GST amount paid Krishna A t 11,98,173 11 2022-23 to contractors II z0 { 11,98,173 GST amount paid Srikakulam A n t 5,06,330 {0 12 2022-23 to contractors { 5,06,330 GST amount paid Visakhapa tnam A t 85,518 13 2022-23 to contractors II {0 z 85,518 GST amount paid 14 East Godavari 2022-23 A to contractors II t 5,47,609 {0 { 5,47,609 GST amount paid 15 West Godavari 2022-23 A to contractors II t 82,577 {0 { 82,577 GST amount paid Prakasam A t4,17,548 16 2022-23 to contractors II {0 { 4,17,548 GST amount paid Nell ore A to contractors II t 77,17,192 17 2022-23 {0 { 77,17, 192 Page 9 of 11 Financial Year 2022-23: Amount Year of the Nature of Amount Balance Name of the Unit Component Para No. released disallowance Disallowance disallowed disallowance SL. No. now GST amount paid t 46,82,300 Kumool A 18 2022-23 to contractors II zo z 46,82,300 GST amount paid Anantapur A t 8,08,106 {0 z 8,08,106 19 2022-23 to contractors II GST amount paid Chittoor A t 24,96,220 zo z 24,96,220 20 2022-23 to contractors II GST amount paid Kadapa A t 31,71,924 {0 z 31,71 ,924 21 2022-23 to contractors II GST amount paid Vizianagaram A t 5,16,478 zo 22 2022-23 to contractors II <5,16,478 purchase IT Equipment not in Nellore A administrative 23 2022-23 approval IV t 94,198 t 94,198 zo Unrcmitted welfare PMU D t 3,56,024 24 2022-23 fund VI <0 z 3,56,024 Unremittcd welfare CE Minor Vijayawada D t 2,103 25 2022-23 fund VI zo z 2, I 03 Unremittcd welfare Directorate D t 7,884 26 2022-23 fund VI zo z 7,884 Unremitted welfare NTR Vijayawada D t 1,899 27 2022-23 fund VI zo z 1,899 Unremitted welfare Krishna D t 633 28 2022-23 fund VI zo <633 Unremitted welfare Prakasam D f 2,743 29 2022-23 fund VI zo <2,743 Unremitted welfare Kumool D f 2,321 30 2022-23 fund VI zo z 2,321 Page 10 of 11 . Financial Year 2022-23: Amount Year of the Nature of Amount Balance Name of the Unit Component Para No. released disallowance Disallowance disallowed disallowance SL. No. now Unremitted welfare Nellore D f 2,743 31 2022-23 fund VI zo z 2,743 East Godavari Unremitted welfare D 32 2022-23 fund VI t 2,536 zo z 2,536 t 2,71 ,03,558 t 11,48,355 t 2,59,55,203 Total t 6,66, 19,669 t 34,43,180 t 6,31,76,489 Summary of Annexure-C Balance ineligible Total ineligible expenditure for Year Amount admitted now expenditure for reimbursement during the year reimbursement 2017-18 z 80,724 zo z 80,724 2018-19 < 75,697 zo < 75,697 2019-20 <31,57,375 z 7,55,337 < 24,02.038 2020-21 <41,05,3 37 < 9,20,535 < 31 ,84,802 2021-22 < 3,20,96,978 <6, 18,953 z 3,14,78,025 2022-23 z 2,71,03,558 < l I ,48,355 z 2,59,55,203 GRAND TOTAL t 6,66, 19,669 t 34,43,180 t 6,31,76,489 A.~ Deputy Accountant General/ AMG-11 Page 11 of 11