Sub: AUDIT REPORT FOR THE FINANCIAL YEAR OF PAYMEN 4 A OF WB LOAN 7565 CR. 4463

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized PAKISTAN ELECTRIC POWER COMPANY (PVT) LIMITED (2) 8T FLOOR, PIA TOWR, EGERTON ROAD LAHORE CE / PD Ph. No. (92) Fax: (92) (PMU) E.Mail: edtpepco@hotmail.com No. IPEPCO/CE/PD/PMU/WB-7565 Cr.4464 Dated2-LJ /2015 Mr. Hasan Saqib, Sr. Financial Mgt. Expert, FM Team World Bank, Office G/5-1, &DR g ISLAMABAD Sub: AUDIT REPORT FOR THE FINANCIAL YEAR OF PAYMEN 4 A OF WB LOAN 7565 CR The Audit Report on the Project Accounts of this office under World Bank Loan 7565 Cr for the FY prepared by the Auditors M/s. Javaid, Jalal, Amjad & Co. Chartered Accountants Lahore according to your requirement on two different patterns (Two copies of each pattern) are attached herewith duly signed by the Auditors and the Project Director PMU PEPCO please. DA One original & copy of Audit Report CC to: CE/PD MU) PEPC Public Disclosure Authorized * GM(F)/CFO PEPCO * SO (IP Ps) MoW&P GoP, Islamabad * Master file

2 Javaid Jalal Amjad & Company Charic d ACCOLilants AUDITORS' REPORT TO THE CF/PD, PROJECT MANAGEMENT UNIT (PMU)-PAKISTAN ELECTRIC POWER COMPANY (PRIVATE) LIMITED (PEPCO) We have audited the annexed Statement of Receipts and Disbursements (henceforth called the statement) of the MINISTRY OF WATER AND POWER, GOVERNMENT OF PAKISTAN THROUGH PMU - PEPCO - PORTION B OF THE CREDIT, CATEGORY 1(f) - LOAN NUMBER 7565-PK, CREDIT NUMBER 4464-PK, ELECTRICITY DISTRIBUTION AND TRANSMISSION IMPROVEMENT PROJECT ("THE PROJECT") FOR THE PERIOD FROM 01 July 2013 to 30 June 2014 together with the notes forming part thereof and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit. It is the responsibility of the PMU to establish and maintain a system of internal control, and prepare and present the above said statement in conformity with the cash receipt and disbursement basis as described in note 2 to the statement. Our responsibility is to express an opinion on the statement based on our audit. We conducted our audit in accordance with generally accepted accounting standards. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statement is free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statement. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statement. We believe that our audit provides a reasonable basis for our opinion and after due verification we report that: As described in note 2 to the statement, the statement has been prepared on the cash receipts and disbursements basis of accounting, which is a comprehensive basis of accounting other than the Generally Accepted Accounting Principles (GAAP). - Contractually, as per World Bank's covenants: a) The consultants are required to provide monthly progress and performance reports on the tasks assigned to them and payments are to be made to them on the basis of these reports but these reports were not available at PEPCO's office for audit verification. b) The Ministry of Water and Power is required to furnish each project's quarterly project report to the World Batik within 45 days at the end of each quarter, but the said reports were not available at PEPCO's of fice for audit verification, 384-N Samanabad. Lahore - Pakistan. Tel: Fax' C 1 javaidjalal@brarin.net.pk, jikhan@wolnet.pk Other Office' Karachi. :e T111 'A -M Team 'O:

3 ,DACCO& Except for the effect on the statement of the matters referred to at a) and b) above, if any, in our opinion and to the best of our information and according to the explanations given to us, the statement of receipts and disbursements of the project for the year ended June 30, 2014, together with the notes forming part thereof presents fairly the state of the project's affairs, in all material respect, prepared on the basis of accounting framework described in note 2 to the statement. avaid Jal A jad& Co. 4' Lahore Chartered Accountants r Dated: January 16, 2014 Engagement Partner: Mohammed J. I. Khan

4 MINISTRY OF WATER AND POWER, GOVERNMENT OF PAKISTAN THROUGH PROJECT MANAGEMENT UNIT (PMU) PAKISTAN ELECTRIC POWER COMPANY (PRIVATE) LIMITED (PEPCO) LOAN NUMBER 7565-PK CREDIT NUMBER 4464-PK, ELECTRICITY DISTRIBUTION AND TRANSMISSION IMPROVEMENT PROJECT PORTION B OF THE CREDIT, CATEGORY 1(F) STATEMENT OF RECEIPT AND DISBURSEMENT FOR THE PERIOD FROM JULY 1, 2013 TO JUNE 30, Note Pak Rupees Pak Rupees Opening Balance , ,308 Receipts Receipts from International Development Association (IDA) under Financing Agreement (Electricity Distribution and Transmission Improvement Project) dated 14 July 2008 between Islamic Republic of Pakistan and IDA 37,882,058 70,816,546 Borrowed from PEPCO (local account) 3-649,068 Total receipts 50,233,483 71,944,922 Less: Disbursements Payments to consultants and support staff 4 27, ,373,578 Payments for capacity building training (London UK) to employees 5 970,678 42,219,920 Repayment tocppa 14,392,443 - Seminar expenses for CASA ,273,858 - Total Disbursements 45,808,341 59,393,498 Closing balance as on June 30, 2014 (Bank reconciliation note 6) 4,425,141 12,351,424 The annexed notes I to 7 form an integral part of this statement. I Project Dire to, PMU-PEPCO C.E/Prolect Director PMU PEPCO 8th Floor P;A Tower Lahore, rm Team 24 APR 2015

5 MINISTRY OF WATER AND POWER, GOVERNMENT OF PAKISTAN THROUGH PROJECT MANAGEMENT UNIT (PMU) PAKISTAN ELECTRIC POWER COMPANY (PRIVATE) LIMITED (PEPCO) LOAN NUMBER 7565-PK, CREDIT NUMBER 4464-PK, ELECTRICITY DISTRIBUTION AND TRANSMISSION IMPROVEMENT PROJECT PORTION B OF THE CREDIT, CATEGORY 1(F) NOTES TO THE STATEMENT OF RECEIPTS AND DISBURSEMENTS FOR THE PERIOD FROM JULY 1, 2013 TO JUNE 30, The Project 1.1 The statement of receipts and disbursements (the statement) for the year from JULY 1, 2013 to JUNE 30, 2014 depicts the receipts and disbursements of Ministry of Water and Power, Government of Pakistan through PMU-Pepco under the Portion B of the Credit, Category 1(f), Loan Number 7565-PK, Credit Number 4464-PK, Electricity Distribution and Transmission Improvement Project. 2 Basis of Accounting 21 The statement has been prepared using the cash receipts and disbursements basis of accounting which is a comprehensive basis of accounting other than the generally accepted accounting principles. On this basis, transactions are recognized when cash is received or paid rather than when they occur Borrowed from PEPCO Pak Rupees Pak Rupees Local currency (Pak Rupees) bank account-national Bank of Pakistan(Pepco) _ 649,068 4 Payments to Consultants and Support Staff Pak Rupees Pak Rupees Mr. Arshad Mehmood 2,400,000 3,590,322 Mr. Rehan Ahmed 853,933 - Mr. Danal Durrani 1,494,000 1,848,845 ir. Bazurg Shah t80, ,991 Mr. Hilal A Raza - 776,340 Anjum Asim Shahid Rehman & Company - 7,934,722 Mr. Javaid 1qbal - 2,876,358 AK Telecommunication Consultant 1,129,768 - Electraconsultant Peshawar 8,866,912 Integration Envirorunent and Energy 12,246,295-27,171,360 17,373,578

6 5 Payments for capacity building training (London UK) to employees Sr. No. Name Adjustment claims of last year's TA/ DA 970, ,678 20Y G Balance of foreign currency (USD) bank account- USD Pak Rupees us1 Pak Rupees National Bank of Pakistan (PMU-Pepco) Bank reconciliation Balance as per cash book as on June 30,2014 4,425,141 12Z31,424 Add: Unpresented cheques 10,214,141 2,017,471 Balance as per bank statement as on June 30, , , , ,368,895 7 Figures 7.1 have been rounded off to the nearest currency unit. 7.2 for the previous period have been rearranged/ reclassified for the purpose of comparison. There has been no material rearrangement/ reclassification during the year. Project Director, PMU-PEPCO

7 Javaid Jalal Amijad & Company Chartered Accouiants W AUDITORS' REPORT TO THE CF/PD, PROJECT MANAGEMENT UNIT (PMU)-PAKISTAN ELECTRIC POWER COMPANY (PRIVATE) LIMITED (PEPCO) We have audited the annexed Statement of Receipts and Disbursements (henceforth called the statement) of the MINISTRY OF WATER AND POWER, GOVERNMENT OF PAKISTAN THROUGH PMU - PEPCO - PORTION B OF THE CREDIT, CATEGORY 1(f) - LOAN NUMBER 7565-PK, I-REDIT NUMBER 4464-PK, ELECTRICITY DISTRIBUTION AND TRANSMISSION IMPROVEMENT PROJECT ("THE PROJECT") FOR THE PERIOD FROM 01 July 2013 to 30 June 2014 together with the notes forming part thereof and we state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit. It is the responsibility of the PMU to establish and maintain a system of internal control, and prepare and present the above said statement in conformity with the cash receipt and disbursement basis as described in note 2 to the statement. Our responsibility is to express an opinion on the statement based on our audit. - We conducted our audit in accordance with generally accepted accounting standards. These standards require that we plan and perform the audit to obtain reasonable aburance about whether the above said statement is free of any material misstatement, An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the above said statement. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the above said statement. We believe that our audit provides a reasonable basis for our opinion and after due verification we report that: As described in note 2 to the statement, the statement has been prepared on the cash receipts and disbursements basis of accounting, which is a comprehensive basis of accounting other than the Generally Accepted Accounting Principles (GAAP). - Contractually, as per World Bank's covenants: a) The consultants are required to provide monthly progress and performance reports on the tasks assigned to them and payments are to be made to them on the basis of these reports but these reports were not available at PEPCO's office for audit verification. b) The Ministry of Water and Power is required to furnish each project's quarterly project report to the World Bank within 43 days atjthe end of each quarter, but the said reports were not available at PEPCO's office for audit verification. 384-N Samanabad, Lahore - Pakistan. Tel Fax: javaidjalal@brain. net. pk, jikhan@wol.net.ph Other Office: Karachi.

8 N%OW Except for the effect on the statement of the matters referred to at a) and b) above, if any, in our opinion and to the best of our information and according to the explanations given to us, the statement of receipts and disbursements of the project for the year ended June 30, 2014, together with the notes forming part thereof presents fairly the state of the project's affairs, in all material respect, prepared on the basis of accounting framework described in note 2 to the statement. Javaid Jalal Amjad & Co. Lahore Chartered Accountants Dated: January 16, 2014 Engagement Partner:. Mohammed J.. Khan

9 MINISTRY OF WATER AND POWER, GOVERNMENT OF PAKISTAN THROUGH PROJECT MANAGEMENT UNIT (PMU) PAKISTAN ELECTRIC POWER COMPANY (PRIVATE) LIMITED (PEPCO) LOAN NUMBER 7565-PK, CREDIT NUMBER 4464-PK, ELECTRICITY DISTRIBUTION AND TRANSMISSION IMPROVEMENT PROJECT PORTION U OF THE CREDIT, CATEGORY () STATEMENT OF RECEIPT AND DISBURSEMENT FOR THE PERIOD FROM JULY 1, 2013 TO JUNE 30, Note Pak Rupees Pakr Rupees Opening Balance 12,351, ,308 Receipts Receipts from International Development Association (IDA) under Financing Agreement (Electricity Distribution and Transmission Improvement Project) dated 14- July 2008 between Islamic Republic of Pakistan and IDA 37,882,058 70,816,546 Borrowed from PEPCO (local account) 3-649,068 Total receipts 50,233,483 71,944,922 Less: Disbursements Payments to consultants and support staff 4 27,171,360 17,373,578 Payments for capacity building training (London UK) to employees 5 970,678 42,219,920 Repayment to CPPA 14,392,445 Seminar expenses for CASA ,273,858 - Total Disbursements 45,808,341 59,593,498 Closing balance as on June 30, 2014 (Bank reconciliation note 6) 4,425,141 12,351,424 The annexed notes Ito 7 form an integral part of this statement- Project Dir tor, PMU-PEPCO C.E/Prolect Director pmu PEPCO 8th Floor PIA Tower Lahore

10 MINISTRY OF WATER AND POWER, GOVERNMENT OF PAKISTAN THROUGH PROJECT MANAGEMENT UNIT (PMU) PAKISTAN ELECTRIC POWER COMPANY (PRIVATE) LIMITED (FEPCO) LOAN NUMBER 7565-PK, CREDIT NUMBER 4464-PR, ELECTRICITY DISTRIBUTION AND TRANSMISSION IMPROVEMENT PROJECT PORTION B OF THE CREDIT, CATEGORY 1(F) NOTES TO THE STATEMENT OF RECEIPTS AND DISBURSEMENTS FOR THE PERIOD FROM JULY 1, 2013 TO JUNE 30, The Project 1.1 The statement of receipts and disbursements (the statement) for the year from JULY 1, 2013 to JUNE 30, 2014 depicts the receipts and disbursements of Ministry of Water and Power, Goverunent of PaFistan through PMU-Pepco under the Portion B of the Crethi, Category 1(f), Loan Number 7565-PK, Credit Number PK, El-tricity Distribution and Transmission Improvement Project. 2 Basis of Accounting 2.1 The statement has been prepared using the cash receipts and disbursements basis of accounting which is a comprehensive basis of accounting other than the generally accepted accounting principles. On this basis, transactions are recognized when cash is received or paid rather than when they occur Borrowed from PEPCO Pak Rupees Pak Rupees Local currency (Pak Rupees) bank account-national Bank of Pakistan(Pepco) - 649,068 4 Payments to Consutants and Support Staff Pak Rupees Pak Rupees Mr. Arshad Mehmood 2,400,000 3,590,322 Mr. Rehan Ahmed 853,933 - Mr. Danial Durrani 1,494,000 1,848,843 Mr. Bazurg Shah 180, ,991 Mr. Hilal A Raza - 776,340 Anjurn Asim Shahid Rehman & Company - 7,934,722 Mr. Javaid [qbal - 2,876,358 AK Telecommunication Consultant 1,129,768 - Electraconsultant Peshawar 8,866,912 Integration Environment and Energy 12,246,295-27,171,360 17,373,578

11 5 Payments for capacity building training (London UK) to employees Sr. No. Name Amount Adjustment claims of last year's TA/ DA 970, , Balance of foreign currency (USD) bank account- USD Pak Rupees USD Pak Rupees National Bank of Pakistan (PMU-Pepco) Bank reconciliation Balance as per cash book as on June 30, ,425,141 12,351,424 A dd: Unpresented cheques 10,214,141 2,017,471 Balanc as oer bank statement as on June 30, , , , i,36,895 7 Figures 7.1 have been rounded off to the nearest currency unit. 7.2 for the previous period have been rearranged/ reclassified for the purpose of comparison. There has been no material rearrangement/ reclassification during the year. Project Director, PMU-PEPCO C J'P C or r,. -I