PAK: National Motorway M-4 Gojra-Shorkot Section Project

Transcription

1 Audited Project Financial Statements Project Number: Loan/Grant Number: 3300/0440 Period covered: 1 July 2015 to 30 June 2016 PAK: National Motorway M-4 Gojra-Shorkot Section Project Prepared by National Highway Authority For the Asian Development Bank Date received by ADB: 30 December 2016 The audited project financial statements are documents owned by the borrower. The views expressed herein do not necessarily represent those of ADB s Board of Directors, Management, or staff. These documents are made publicly available in accordance with ADB s Public Communications Policy (2011) and as agreed between ADB and the National Highway Authority.

2 ASIAN OEVELOPIVlf:NT fll\n~ ~[::;~ 11 ;~~:~1 rrr -o;::;r =u-c:rc:j l~ PAKISTAN RESIDENT MISSION. ISLAMABAO Financial Attest Audit Report on the Accounts of Construction of Faisalabad-Khanewal Expressway (M-4/E-4) Package-II: Gojra-Shorkot Section (61 km) Asian Development Bank Loan 3300-Pak, 3121 (Partially for consultancy) & Grant 0440 National Highway Authority Ministry of Communications Government of Pakistan For the Financial Year Auditor General of Pakistan Islamabad

3 Financial Attest Audit Report on the Accounts of Construction of Faisalabad-Khanewal Expressway (M-4/E-4) Package-II: Gojra-Shorkot Section (61 km) Asian Development Bank Loan 3300-Pak, 3121 (Partially for consultancy) & Grant 0440 National Highway Authority Ministry of Communications Government of Pakistan For the Financial Year Auditor General of Pakistan Islamabad

4 ADB CDL E-4 EC NEC EMP EPC FC GFR GoP IPC ISSAI IT km LARP LC M-2 M-3 M-4 Moc N-5 NHA NTC NTCHIP OM PC-I PEC PSDP VO Abbreviations and Acronyms Asian Development Bank Cash Development Loan Expressway-4 (Faisalabad-Khanewal Expressway) Executive Committee of the National Economic Council Environment Management Plan Escalation Payment Certificate Foreign Currency General Financial Rules Government of Pakistan Interim Payment Certificate International Standards of Supreme Audit Institutions Information Technology Kilometer Land Acquisition & Resettlement Plan Local Currency Motorway-2 (Lahore-Islamabad Motorway) Motorway-3 (Pindi Bhattian-Faisalabad Motorway) Motorway-4 (Faisalabad-Khm1ewal Motorway) Ministry of Communications National Highway-5 (Grand Trunk Road) National Highway Authority National Trade Corridor National Trade Corridor Highway Investment Programme Office Memorandum Planning Commission (Proforma-I) Pakistan Engineering Council Public Sector Development Programme Variation Order 1

5 PREFACE The Auditor General of Paldstan conducts audit subject to Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Section 7 of the Auditor General's Ftmctions, Powers and Terms and Conditions of Service Ordinance, The Financial Attest Audit of the Project "National Trade Corridor Highway Investment Program, Construction of Faisalabad-Khanewal Expressway (M-4/E-4), Package-II: Gojra-Shorkot Section (61 km)" financed by the Asian Development Bank, through Loan No Pak, Loan 3121 (partially for consultancy) and Grant No. 0440, was carried out accordingly. The Director General Audit Works (Federal), Islamabad conducted Financial Attest Audit of the Project (Package-II, Gojra-Shorkot Section 61 km) during August-September, 2016 for the period with a view to expressing opinion on financial statements and reporting significant findings to the stakeholders. Audit examined the economy, efficiency and effectiveness of the project. In addition, Audit also assessed, on test check basis, whether the management complied with applicable laws, rnles and regulations in managing the Project. The Report indicates specific actions that, if taken, will help the management to realize the objectives of the project. The Report consists of two parts.. Part-I contains Auditor's Report (Audit Opinion) and Financial Statements. Part-II contains Management Letter comprising Executive Summary and Audit Findings. The Report has been prepared for submission to the Asian Development Bank in terms of its Loan Agreement with the Government oflslamic Republic of Pakistan. Dated: 29th December, 2016 Islamabad ad Gonda!) udit Works (Federal) 2

6 PROJECT OVERVIEW Name of the Project/Program: National Trade Corridor Highway Investment Program, Faisalabad-Khanewal Expressway (M-4/E-4) 184 km, Package-11 Gojra-Shorkot Section (61 km) Sponsoring Authority: Executing Authority: Asian Development Bank National Highway Authority Loan No Pak & Grant No Date of approval by ECNEC: 6 1 h February, 2008 PC-I Cost: Rs 28, million (Package-I, 11, III & IV) Date of Commencement: April 01, 20I6 (Package-2A & 2B) Actual Date of Commencement: April 0 l, 2016 (Package-2A & 2B) Date of Completion (as per PC-I): 24 months Date of Closing of Loan Agreement: 31st May, 2020 Loan/Grant Utilization Status in FY : i. Loan share: ii. Grant share: iii. Government of Pakistan share: Total amount for the year: Progressive Expenditure upto June 2016: Rs million Rs 1, million Rs million Rs 1, million Rs 1, million 3

7 AUDITOR'S REPORT TO THE MANAGEMENT The Director General Audit Works (Federal), Islamabad has audited the accompanying Financial Statements of the Project "Faisalabad-Khanewal Expressway (M- 4/E-4) 184 km, Package-II Gojra-Shorkot Section (61 km)" financed through ADB Loan 3300-Pak, Loan 3121 (partially for consultancy) and Grant 0440 as of 30th June, The preparation of Financial Statements is the responsibility of the Management of the Project. Responsibility of Audit is to express an opinion on the accompanying Statements based on the audit exercise. The audit exercise was carried out in accordance with the International Standards of Supreme Audit Institutions (ISSAI). The Standards require the Audit to obtain reasonable assurance that the Financial Statements are free of material misstatements. This audit is based on a test check basis and includes findings, evidence supporting the amounts and disclosures in the Financial Statements. It also includes assessing the Accounting Principles used by the Management in preparing Financial Statements and significant estimates made by the Management as well as evaluating the overall st~tement presentation. We believe that our audit provides a reasonable basis for our opinion. The Management's policy is to prepare the accompanying statements in the format agreed between the Asian Development Bank and the Government of Pakistan, on a cash receipts and disbursement basis in which revenue is recognized when received and expenses are recognized when paid. In our opinion: A. The aforementioned Financial Statements and appended Notes, that were also subject to audit, fairly present in all material respects the financial position of the Project "Faisalabad-Khanewal Expressway (E-4) 184 km, Package-II Gojra-Shorkot Section (61 km)" and results of its operations for the period ended 30th June, 2016 in conformity with Cash Basis International Public Sector Accounting Standards, applied on a basis consistent in material respect with that of previous year, B. The management of the Project has utilized all proceeds of the Loan and Grant withdrawn from the Asian Development Bank only for the purposes of the Project as agreed between the Asian Development Bank and Government of Pakistan in accordance with the Loan Agreement and no proceeds of the loan have been utilized for any other purposes. Dated: 29th December, 2016 Islamabad 4

8 FINANCIAL STATEMENTS NATIONAL TRADE CORRIDOR HIGHWAY INVESTMENT PROGRAM, F AISALABAD-KHANEW AL EXPRESSWAY (M-4/E-4) (184 KM) PACKAGE-II: GOJRA-SHORKOT SECTION (61 KM) ADB LOAN 3300-PAK, 3121 (PART ALLY FOR CONSULANCY) & GRANT-0440 (NATIONAL HIGHWAY AUTHORITY) FOR THE YEAR ENDED 30th JUNE,

9 FINANCIAL STATEMENTS NATIONAL TRADE CORRIDOR HIGHWAY INVESTMENT PROGRAM FAISALABAD-KHANEWAL EXPRESSWAY (M-4/E-4) (184 KM) PACKAGE-II: GOJRA-SHORKOT SECTION (61 KM) ADB LOAN 3300-PAK, 3121-PAK & GRANT-0440 FOR THE YEAR ENDED 30 1 h JUNE, 2016 Statement of Cash Receipts and Payments Statement of Comparison of Budget and Actual Amounts Notes to the Financial Statements Reconciliation statement of withdrawal application Statement of Withdrawal Applications Page No

10 ANNUAL FIN,ANCIAL STATEMENTS For ADB Loan No PAK & Grant No. 0440: Faisalabad - Khane_wal Project (184km) Section Gojra to Shorkot Statement of Cash Receipts and Payments For the year ended June 30, 2016 FY (PKR Million) FY (PKR Million) ' Payments Note by Project Authorties Total Payments by Receipts/Pay Third Parties ments Payments by Project Authorties Payments by Third Parties Total Receipts/P ayments Receipts ADB Loan No ADB Loan No ADB Grant No Government Funds , , Total Receipts , , Payments Civil Works inc. Escalation Consultinq Services Transfer of Funds (R/Ml Establishment Total Payment , , , , Increase/(Decrease) in Cash Cash at beginning of year Increase/(D.ecrease) in Cash Cash at end of year / ~Q/il;... r. ~ AUDITOFFICER JP Dte. General Audit Works Dy. Director (Accou/I/. (Federal) Islamabad National Highway Aut1 Y /SL.AM ABAD. 7 A.~9 f&.h,fo. ~tjr4sj~

11 Note STATEMEN.T OF 0MPARISON OF BUDGET AND ACTUAL AMOUNTS ~ For ADB Loan No PAK, 3121 & Grant No. 0440: Faisalabad, - Khcinewal Project (184km) Section Gojra to Shorkot ' For the year ended June 30, 2016 FY (PKR Million) FY {PKR Million) Actual Original Revised Difference of Actual Original Revised Difference Budget Budget Original Budget Budget of Budget Budget and and Actual Actual Cash in Flows ADB Loan No ( ) ADB Loan No (Consultancy) ADB Grant No , , Government Funds ( ) Total Receipts 1, , ,400, Cash Outflows. Civil Works inc. Escalcltion 8 Consulting Services 9 Transfer of Funds (R/M) 1, , Establishment 10 Total Payments ,773, , Net Cash Flows AL"OIT OFl'lGESt ' Ote. Gener!i / 1 :J!~?t '!fjorks (~ed2~-t.' i} L:: ::~:;: b~~-~.~1&d,fo, Dy. Director(Accoums National Highway Aurh. I SLAM ABAD. - lp"rt)>i ~. 8

12 For ADB Loan No PAK, 3121 PAK & Grant No. 0440: Faisalabad - Khariewal Project (184km) Section Gojra to Shorkot Notes to the Financial Statements For the year ended June 30, Natur.e and Status of the Project Faisalabad Khanewal Motorway M-4 Project ("th.e project") is under taken by the National Highway Authority ("the authority"). Th.e M-4 Project will drastically requced the traffic congestion particularly h7.avy vihicular traffic from Faisalabad to Khanewal. The project section from Gojra to Shorkot is financed by Government of Pakistan (GOP) in collaboration with Asian Development Bank (ADB) through loan agreement. This represent the Loan USD 178 millions USD Grant 92 million sanctioned by ADB through GOP for NHA. As per Aide-memoir dated The loan amount shall be paid back to ADB in 25 Years starting a~er Gestation period of 5 years including Interest Rate 15% per annum 2. Management Assertion / Certificate by Project Management on application of Funds It is certified that fund have been applied I expenditure has been incurred for the purpose intended in the loan agreement Management Assertion The proceeds of the withdraw! of ADB have been utilized in manner stipulated Activity Agreement with ADB. 3. Accounting Convention and Basis for Preparation The Financial sta~ements have been prepared in accordence with cash basis IPSAS financial reporting under cash basis of accounting. The accounting policies have been applied consistantly through out the period. 4 Note FY ~ FY PKR in Million PKR in Million ADS Loan No Total ADS Loan No Total Conultancy cost paybale to M/s IDC at M-4 charged from loan ADS Graht No , Total 1, Total External Assistance 1, Government Counterpart Fund GOP Fund Total Ji Civil Works Expenditure from ADS Funds 1, Expenditure from GoP Fun)ls Total { ~~ /Vt<Ji---11"-:- 1, AUDIT OFFICER ~ Dte. General Audit Works,;;;:; " Wk4'._ q,,~. (Federal) Islamabad. /" Dy. Director (Acco1111ts) AP 'Vational Highway Authority /SLAMA BAD. n

13 I 9 Consulting Services Expenditure from ADB Funds Expenditure from GoP Funds Total Transfer of Funds (R/M) Expenditure from GoP Funds Total 11 Establishment Salary (GOP) Other Establishment Exp (GOP) Total (.~~. Av,.. ;.. ",.,~~ Dte. Genera[ ~q-~ 1.tH.-_ tw_ (Federnl) lslamaoad IPli"'l"'h',..,_.!".,".<.~l~~r;~ ~ i"'... or ~ ~~ft... Dy. Director(Accmmts)AP National Higi11vayA1ul10rity ISLAMABAD.

14 NATIONAL HIGHWAY AUTHORITY For AOB Loan No. 3300; 3121 & Grant No PAK: Gojra to Shorkot (M-4) Project. Reconciliation Statement For the Year Ended June, 30, 2016 (Rs. In Million) Balance as ADB Documents Confirmation against Loan 3300 Balance as A.DB Documents Confirmation against Loan 3121 Balane<;' as ADB Documents Confirmation against Grant , ; Booked by NHA Not Appearing in ADB Document. Expanditure as per withdraw! Application of Loan 3300 Expanditure as per withdraw! Application of Loan Expanditure as per withdraw! AppliCation of Grant 0440! ~CJ;l. AUDIT OFFICER ' Ari Ote. General Audit Works (Federal) Islamabad. L , , ~ 'P~ <Z D D' d'""' N:;10,:~r%~r.(Accounts) AP. 'Cllway A11thori1J / SLAMA BAD. 11

15 Detail of Summary Sheet (AP Section) Faisalabad Khanewal (MC4) 184 Km Gojra -.Shorkot Section Loan No: 3300 Sr Appllcat1on Date No. No NHOOl NH NH003A NH NH NH NH NH , NH NHOlO 11 23; NHOll /.bk.jjd~ ~.. For the Year ended 30th June, 2016 Contract Amount Claimed No. LC FC M-4 IIA 227,185,959 M-4 IIB 16,829,001 M-4 IIB 2,525, 128 M-4. M-4 664,548 17, M-4 460,480 - M-4 213,326. M-4 74,703 - M-4 23,670 M-4 23, M-4 ~89,256 Total Amount \ ~ (,. ~.%~ ~,(a4,rfon. "" Dr,.eclor ('Accou11ts) AP vai rmial Hi[!hway Aut/writy ISLAMABAD. ' Rate Net leoul. Rs. l 227,185,959 16,829, ,586,747 1,807, , , ,326 74,703 23,670 2,437, , ,772,759 t)nt0j\f 12

16 Detail of Summary Sheet (AP Section) Faisalabad Khanewal (M-4) 184 Km Gojra - Shorkot Section Grant No: 0440 For the Year Ended 30th June, 2016 Sr No. Date Applicatio~No. Contract. No (te~folc AUDITOFFI~ ~~ Qte. General Audit Works (Federal) lslamab~d NHOOl. M:4!IA NH002 / M-4 JIB ~'1;_... %/},,, r, 1 /alt-,._/jim. Dy. Director (Acco1111ts) AP National Highway Awlwrity ISLAMABAD. Amount Claimed LC Net (Eoul. Rs.) ,068,199,161 mi 'n. 13

17 W/Appl Appl. Amount, No. US$ ( NHOOl PRS NH002 PRS ,001 NH004 US$ NHOOS PRS NH006 PRS NH007 PRS NH008 PRS NH009 PRS NH010 US$ NH011 PRS NH03A US$ TOTAL I / ~ I I I A-o AUOl't OFi'lceR Dte. General Audit Worl!s (Federal) Islamabad NATIONAL HIGHWAY AUTHORITY For ADB Loan No PAK: Gojra to Shorkot (M-4) Project. For the Year Ended June, 30, 2016 ADB Loan PK-3300 Amount, Disbursed Amount Disbursed In PKR US$ PRS PRS US$ , PRS PRS PRS 213, PRS PRS US$ 23, PRS US$ ~,.. "r'o1..., r!laa., fo.. Dy. Director (Acco11111s) A_I' National Highway Authority c ISLAMABAD. US$ Enuivalent ( , ,390, Value Acctg Date Month 21-Mar Mar Mar Mav Mav ~Mav Mav Mav Mav Jun Jun Aor SJ~

18 W/Appl. No. NHOOl NH002 NATIONAL HIGHWAY AUTHORITY For ADB Grant No PAK: Gojra to Shorkot (M-4) Project For the Year Ended June, 30, 2016 ADB Loan PK-0440 Appl. Amount Amount Disbursed US$ Eouivalent PRS I 535,509,761 PRS 535,509, 761 5,117,150 PRS I 532,689,400 PRS 532,689,400. 5,092,146 TOTAL ( 1,068,199,161 10,209,296,./,(~~ (!P"o..%p. r;'taa-,y.im AUDIT OFFICEtfl"' ' ks Dy. Director Accoums) AP National Highway Authority ISLAMABAD. Value Date 10-Mar Mar-16 t)n"tl 1. 15