Public Disclosure Authorized ma 0 of Roads ; ROAD SECTOR DEVELOPMENT PROJECT' Date: 7 th March 2018 Public Disclosure Authorized Public Disclosure Authorized Mr. Luquan Tian Task Team Leader The World Bank Nepal Country Office Yak and Yeti Hotel Complex Kathmandu. Sub: Road Sector Development Project, Road Sector Development Project(IDA Credit No.: 5865NP) Audited Project Account, Fiscal Year 2016/2017(20732074) Dear Sir, Please find enclosed herewith a copy of Audited Project Account of Road Sector Development Project for the Fiscal Year 2016/2017 (2073/74) under the IDA Credit No.: 5865NEP. Thanking You. Public Disclosure Authorized Yours Sincerely, (BimalaAdhigari) Account Officer Cc: Office of Auditor General, Babar Mahal., Singha Durbar. Financial Comptroller General Office, Reimbursement Section, Anamnagar. Director General,, Babar Mahal.
Ref. No. 2074/75 5(30 Date NMarch 7, 2018 INDEPENDENT AUDITOR'S REPORT The Secretary Ministry of Finance Singh Durbar, Kathmandu Report on the Financial Statements We have audited the accompanying Project Financial Statements including Statement of Designated Account of the "Road Sector Development Project ( AFIl)" financed by IDA Grant No 5855NEP as at 15t' July 2017 (31stAshad, 2074) and for the year then ended and a summary of accounting policies and other explanatory notes. Managements Responsibility for Financial Statements Management is responsible for the preparation and fair presentation of the Financial Statements in accordance with the Government of Nepal (GON) accounting policies and relevant practices. This responsibility included designing, implementing and maintaining internal control relevant to preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud and error. Auditor's Responsibility Our responsibility is to express an opinion of these Project Financial Statements based on our audit. We conducted our audit in accordance with the INTOSAI (International Organization of Supreme Audit Institutions) Fundamental Auditing Principles. Those principles require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures In the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion Management letter highlighting areas for improving financial management is attached herewith. In our opinion, the Project Financial Statements including Statement of Designated Account, in all material respects, give a true and fair view of the financial position of the "Road Sector Development Project (RSOPAFil)" as of 15 th July 2017 (31"Ashad 2074), and of the results of its operations and its cash flows for the year then ended in accordance with GON accounting policies. We also report that funds provided under IDA Grant No 5865NEP has been utilized for intended purposes. ohadatta Timilsina Deputy Auditor General
GOVERNMENT OF NEPAL MINISTRY OF PHYSICAL INFRASTRUCTURE AND TRANSPORT DEPARTMENT OF ROADS ROAD SECTOR DEVEOPMENT PROJECT (AFII) (IDA Credit No.: 5865NEP) (IDA Project ID Number: P157607) AUDITED Project Account FY 07374 (2016/2017) (Period between 16 July 2016 to 15 July 2017) Kathmandu Nepal
Road Sector Development Project (Credit No: 6866) FY. 16 July 2016 to 15 July 2017 Summary of Sources and Uses of Funds Audited Project Account Amount in NPR Description Notes to Account Cumulative up to Previous Fiscal Year (2015116) Fiscal Year (2016117) Cumulative to Date Budget Allocation Approved Allocation Support 2 3,175,874,000.00 3,175,874,000.00 A. Opening Cash/Bank Balance Report 1 Cash/Bank balance of previous period B. Sources of Funds GoN Fund Support 1 13,125,000,00 13,125,000.00 GoN Reimbursable Fund Support 1 142,697,382.00 142,697,362.00 IDA Funds C. Uses of Funds by Category/ Component 1. Works under part I (F & G) of the project (29611100%) Support 1 Total (A+B) 155,822,362.00 155,822,362.00 2. Works under part 1 (A & E) of the project (2961150%) Support 1 92,520,000.00 92,520,000.00 Goods and Non consulting Services (29411) Support 1 27,268,000.00 27,268,000.00 Consultant (Good, training and workshop) (29711) Support 1 36,034,362.00 36,034,362.00 Total 155,822,362.00 155,822,362.00 D. Closing Balance Total (C+D) 155,822,36200 156,822,362.00 Designated Account Statement 1 Opening Balance 2 Fund Received from IDA Total Cash Available 3 Less: Transfer to GoN Treasury Account 4 Less: Direct Payment from Designated Account 5 Foreign Exchange Gain/Loss (+1) as NRB ad). 6. Closing Balance (345+6)i aa ikari Sanjaya K. Shrestha Thaneshwor Gautam Gopal Prasad Sigdel Mun Kumar f.c. Devendra Karki Ram Kumar Acharya Mohadatta Timilsina Accounts Officer Prqject Coordinator Chief Accounts Controller DG Under Secretary Secretary FCG DAG DOR DOR MoPIT MoPIT FCGO OAG
A B Note I Road Sector Development Project ( Credit No. S865) 16 July 2016 to 15 July 2017 Audit Projec Account GoN and GoN Reimbursable Funds Cumulative up to Description Previous Fiscal Year Fiscal Year (2016117) Cumulative to Date (2015116) GoN Fund Released 13,125,000.00 13,126,000.00 GoN Reimbursable Fund Released Transfer to GoN Treasury from Designated Account 142,697,362.00 142,697,362.00 Total Funds Released 155,822,362.00 155,822,362.00 Total C Total Funds used from GoN Treasury (AB) 155,822,362.00 155,822,362.00 GoN Fund Expenditure D Less: Source to be changed to GON source 13,125,000.00 13,125,000,00 E GoN Reimbursable Funds: GoN Reimbursable Fund Expenditure Source to be changed from GoN source Less: Reimbursement Received Net GoN Expenditure 13,125,000.00 13,125,000.00 142,697,362.00 142,697,362.00 Net GoN Reimbursable Funds 142,697,362.00 142,697,362.00 F Total (D+E) 155,822,362.00 155,822,36200 IDA Funds Transfer to GoN Treasury from Designated Account A Funds Transfer to GoN Treasury B Documented to IDA Credit C Documented to IDA Grant D Transfer amount still to be Documented Total IDA Funds (B+C+D) Birnala Adhikari Account Officer Sanjaya Kumar Shrestha
Road Sector Development Project (Credit No.6865) FY. 16 July 2016 to 15 July 2017 Designated Account Reconciliation Statement & Cash Projection Amount in NPR Particulars Cumulative up to Reporting FY 2016/17 Cumulative to Date Remarks FY2O1S/16 1. Opening Cash Balance 2. Add : Receipt of Funds 3. Total Cash Balance (1+2) 4. Less: (a) Transfer to GON Treasury from Designated Account (b) Direct Payment from Designated Account 6. Closing Designated Account Balance at the end of Reporting 5. Foreign Exchange Gain/Loss (+/) Period (34+5) Amount in USD Particulars Cumulative up to Reporting FY Cumulative to FY Date 2015/16 Remarks 2016/17 1. Opening Cash Balance 2. Add: Receipt of Funds 3. Total Cash Balance (1+2) 4. Less: (a) Transfer to GON Treasury from Designated Account (b) Direct Payment from Designated Account 5. Closing Designated Account Balance at the end of Reporting Particulars CASH REQUIREMENT 6. Eligible Expenditure for IDA financing yet to be transferred to GON Treasury 142,697,362.00 1,387,296.93 Cash Projection for next 1st and 2nd Trimesters of FY 2017/18 1,797,908,400.00 17,479,179.47 Total Cash Requirements Less: Closing Balance 1,940,605,762.00 18,866,476.40 Net Cash Requirement from IDA for next 2 Trimesters Note: Exchage rate on July 15, 2017 is 10286 1,940,605,762.00 18,866,476.40 Less: Fund Claimed with IDA but yet to be accounted NPR USD Biaal hikari Account Officer Sanjaya Kumar Shrestha
Road Sector Development Project (Credit No. 5865) FY. 16 July 2016 to 15 July 2017 Statement of Expenditure Cumulative FY (2016117) Balance Budget Report 3 Amount In NPR Line Item No. Category Description! Component Total Project Cost Expenditure upto Annual Budget Cumulative No. Previous FY Allocation YeartoDate % Amount % Expenditure to (2015/16) Date 1 3 4 5 6 10 = (7+8+9) 11 12 (410) 13 14 (5+10) (10/6*10} (12/4*100) 29611 (100%) 1 works underpart 1 (F & G1 of the project 1,908,522,000.00 _ 1,908,522,000.00 100 29611 (50%) 2 Works under part I (A & E) of the project 2,246,244,000.00 1,429,143,300.00 92,520,000.00 6.47 2,153,724,000.00 95.881124 92,520,000.00 29711 3 Consuitant (Good, training and workshop) 895,356,000,00 1,111,555,900.00 36,034,362.00 3.24 859,321,638.00 95.975415 36,034,362.00 29411 4 Goods and Non consulting Services 2,246,244,000.00 635,174,800.00 27,268,000.00 4.29 2,218,976,000.00 98.786062 27,268,000.00 Grand Total 7,296,366,000.00 3,175,874,00000 155,822,362.00 7,140,543,638.00 155,822,352.00 Note: 1 SDR= 1.64 USD & 1 USD = 102 NPR Is taken Bimala Adhikari Account Officer Sanjaya Kumar Shrestha
Road Sector Development Project (Credit No. 5865) 16 July 2016 to 15 July 2017 Category wise Expenditure Support 1 Categories No. Categories Name GON IDA Total 29611 (100%) works under part 1 (F & G) of the project 0 29611(50%) Works under part 1 (A & E) of the project 13,125,000.00 79,395,000.00 92,520,000.00 29411 Consultant (Good, training and workshop) 27,268,000.00 27,268,000.00 29711 Goods and Non consulting Services 36,034,362.00 36,034,362.00 Total 13,125,000.00 142,697,362.00 155,822,362.00 Bimala dhikarl Sanjaya Kumar Shrestha Account Officer
Road Sector Development Project Sourcewise Breakdown of Budget for FY 2017/18 Support 3 Credit No. First Trimester Second Trimester Third Trimester Total Total 1st & 2nd Trim Total 2nd & 3rd Trim. 5865 599,302,800.00 1,198,605,600.00 1,198,605,600.00 2,996,514,000.00 1,797,908,400.00 2,397,211,200.00 Total 599,302,800.00 1,198,605,600.00 1,198,605,600.00 2,996,514,000.00 1,797,908,400.00 2,397,211,200.00 Bimala Adhi ari Accounts 0 ficer Sanjaya Kumar Shrestha
Road Sector Development Project FY 2016/17 Sourcewise Breakdown of Budget Support 2 Credit No. First Trimester Second Trimester Third Trimester Total Total 1st & 2nd Trim Total 2nd & 3rd Trim. 5002 71,520,000.00 357,600,000.00 286,080,000.00 715,200,000.00 429,120,000.00 643,680,000.00 5865 1,587,937,000.00 1,587,937,000.00 3,175,874,000.00 1,587,937,000.00 3,175,874,000.00 Total 71,520,000.00 1,945,537,000.00 1,874,017,000.00 3,891,074,000.00 2,017,057,000.00 3,819,554,000.00 Bimala A hikari Accounts Officer Sanjaya Kumar Shrestha
Client Code: 1202339 Client Name: ROAD SECTOR DEVELOPMENT PROJECT A/c No: 1202339/001.005.840 A/c Name: 4kha Nagad DEBT fi IDA No. 5865 Currency : USD Nepal Rastra Bank Banking Office, Thapathali (Account Statement) Date V ate Ref,. Chq. Amount Exch. Description Dr/Cr FC NPR Rate Balance