OFFICE OF THE ADDITIONAL CHIEF ENGINEER (PPP) P.W.D. RAJASTHAN JAIPUR No- \ b eT Dated- Justin Runji, Task Team Leader for the Project, World Bank. Sub- Audited Project Financial Statements (Loan No. 8939- IN) Financial Year 2020-21. Sir, Kindly find enclosed herewith copy of the Audited Project Financial Statements with the audit Observations (Loan No. 8939- IN) financial year 2020-21 for your information and necessary action. End:- as above (Vinod K ma mgh) Addl. Chief Engineer PPP, P.W.D. Rajasthan, Jaipur No- Dated- Copy to 1- Under Secy. (MI) Govt. of India, Ministry of Finance (Deptt. Of Economic Affairs), (M.I. Division), North Block, New Delhi-110001. 2- PS to Pr. Secy., Public Works Department, Rajasthan, Jaipur. 3- CE (NHI/PPP) PWD Rajasthan Jaipur. Addl. Chn eer PPP, P.W.D. Rajasthan, Jaipur No. crÔ C 09-trJR5N P)/4 ý2)21-fl) -s--m9eT iKlie in (i qnnel<51-I) ~rT u1Tq4, ;ziw - 302 005 INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE OF THE ACCOUNTANT GENERAL i AUDIT-I RAJASTHAN Janpath, Jaipur- 302 005 ft--F/Datei'.JSI...2.27 if"Ii fèlsrm, ~V -302006 " T yrg"a1- N-T 'iftTmT" (Loan No 8939-IND) p rf ~iTUW T n4 2020-21 TT WTf rr y W 1 T i "3R"s-I7-TT ~t# " (Loan No 8939-IND) T -ar i TifT -r 'år 2020-21 xi Y W q P j -l.T ¶T i 2,~m- Eg xi 3T74 wnr -2385430-39,2385131, 2385232 tifI: 0141-2385181 ttc : agaurajasthan1@cag.gov.in Telephone 2385430-39,2385131, 2385232 Fax : 0141-2385181 E-mail : agaurajasthanl@cag.gov.in Reprt f te Cmptoiler and Auditor General of India Additional Chief Engineer (PPP) Public Works Department, Government of Raiasthan, Jacob Road Jaipur 302006 Report onl the ProjetFnnca Statements We have audited the accompanying financial statements of the Rajasthan State Flighwa\s Development Program II Project financed under International Bank for Reconstruction & Development (World Bank) Loan No. 8939-IN which comprises the Statement of Sources and Application of Funds and the Reconciliation of Claims to Total Application of Funds for the year ended 31-03-2021. 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 from 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 Rajasthan State Highways Development Program II Project for the year ended 31-03- 2021 in accordance with Government of India accounting standards. In addition, in our opinion. (a) with respect to SOE's, adequate supporting documentation has been maintained to support claims to the International Bank for Reconstruction & Development (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 Loan / Credit Agreement. During the course of the audit, SOEs / FMRs 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 the CAG of [ndia for being laid before Parliament/State or UT Legislature. Sr. Dy. Accountant General / A.M.G.-I Audit Observation Non reimbursable amount in Rajasthan State Highway Development Project-II Rs.60.10 crore A Including non-reimbursable retention money (Deposit f & V) in reimbursable claim Rs.42.01 crore As per Section C point h of loan agreement any retention money deducted from contract payments, and not released by closing date shall not be considered Eligible expenditures. During the course of audit of Additional C.E P.P.P., PWD Jaipur for the year 2020-21 it is observed that a sum ofRs.42,,,88 3 towards retention money (deposit II & V) was included in claims. b. Including non-reimbursable amount of Electrical/Water/Comminication charges in reimbursable claim Rs. 18.09 crore. As per Section C point c of loan agreement any agency charges or centage charges collected or to be collected by the Project Implementing Entities shall not be considered Eligible expenditures. During the course of audit it was observed that Electrical/Water/Communication charges of Rs. 1 8,09,43,402 was included in claims. Above claims of 60.10 crore were non reimbursable. Sr. Audit icer/CA Cell OFFICE OF THE ADDITIONAL CHIEF ENGINEER (PPP) P.W.D. RAJASTHAN JAIPUR No- fl Dated- 1 g To, Pr. Accountant General (G&SS Audit) Rajasthan, Jaipur. This assertion letter is provided in connection with your audit of the financial statements of the World Bank funded RSHDP-I1 projects for the year ended March 31, 2021. We acknowledge our responsibility for the fair presentation of the financial statements in accordance with the cash basis of accounting 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 statements are free of material misstatements, including omissions. * Project funds have been used for the purposes for which they were provided. * Project expenditures are eligible for financing under the Loan/Credit 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 will made available to you all books of account and supporting documentation relation to the project. * The project has complied with the conditions of all relevant legal agreements, including the Fimincing Agreement. the Project Agreement ptA4LJ N) ff1 dwl.pA PVi?$jMh~J A-j¼ 、～_ 養， 、 J 由 『一 ！二 ～嗚－ →－,-- Annexurc 2 Reconciliation of claims to Total Sources and Ar,71!c3Lmn of Funds Name of the Project - World Bank Funded Rajasthan State High k ay Development Prograrnme-1-1 Loan No:-8939 JN Statement of'Sources and Applications of Funds Report for the Year ended- 31 Maric, 2021 2020-21 Schedules Amount (;is 00) CurElatlear Pre otti Year t to date Bank Funds clairried during the veir (A) 1 5181063974 0 090 c_ i.181063974 a e, car 99 ] 3792 51 8 10 1 974 0,000 Total Expinditure made during the year (B) Corre ' ' ' :I- r Y 3929376994 1613792,682 5543169-679- E= 66 8 21 0-000 Less Outstandinp AC Bill C 11 0000 ODOD Ineligible expenditures (D) III O.UOU 6-000 - 0.000 Expenditu* not Claimed (E) IV 362IU5 702 1613792.682 1975998.394 Ineligible expenditures Claimed 0,00D 0-000 (F)=(R (C ) -(D) -(E) - 3567271 292 3567271.292 worl d 8 ank 5 hare @ 5 9% of (F) above (G) 0.000 21046WO62 Total Expenditure in F,Y.:2020-2[ Rs. 395.040.259 Less - Commitment Charges Rs, 22663.265 Reimbursement received in F.Y.202D-21 @ 59% Net Amount in FY:- 2020-21 faT claim Rs- 3919376,994 of tota I incurred expeaditurc- C la i ni pend i n g fo r the Year 2 019-20 1, 24.08,2020 (of R& Rs- 1613791682 2213789.551 from 01.042020 to 1306135.835 31-08,2020) Rs. 362105702 2 02,12,2 02 0 (of Rs, 319993.9 20 I88796AI3 Total Pending Claim for 202G-21 from 01 09.2020 to 3011 2020 Claim lodged in F Y 1, (0 1 -04,2020 to 3 1,D8,202C Rs 2213789.551 1 - 17.12,2 020 (a f Rs. 8307 [ 8 3 04 499928399 2020-21 "rom 0 1 12.2023 to 3 t 12.2020) 2 - (01.09.2020 to 3011 2020 Rs. 319993.920 4. 21.01,2021 (of Rs, 977043 9 1 9 576455.912 from0l.01-2021 to3l.01.2021) 3 01,12,2020to3l.12.2020 Rs, 830218,304 5 12.022021 (of Ks. 840018.280 495610795 from 0 1 -02 - 20.2 1 to 2 8 02.20'2 1 4 01-01,2021 to 31,01.2021 Rs. 977043919 5. 01.02.2021 to 28.02-2021 Rs. 840018,280 Total Claim Lodged (A) Rs 5191063974 Claim Pending on 31.03.2021 (From 01 M.202) to 3 1.03,202 1) Which lodged in FY. 2021-22 and Rs- 362105.702 Reimbursement received in 2021-22 Rs, Total Reimbursement T=iv,!d Rs, 3056827.744 F' i A or 'on a I Ch'E181 IMP PP) Ad ! Magmeff (Ppp) 44"M PtLrn rw SIOR 4"dw, Jaipur P w" Dt My