{ RN. /4./Y4 /42 15 aff$/ SO/NGDC/Dehradu/201 8-i19//733 L Public Disclosure Authorized

Secretary, Ministry of Water Resources, River Development & Ganga Rejuvenation, Shram Shakti Bhawan, Rafi Marg, New Delhi-110 001

Tci-- Auciit Certi'icate in resp,ct of Nptional Hydrology Project of Deptt. of Science & Technology, Survey of . National Geo-Spatia! Data Centre, Public Disclosure Authorized (MoWR, RD&GR) for the yeir 201 7-18.

Please find enclosed Audit Certificate for National Hydrology Project of Deptt. of Seiene & Technology, Survey of India, National Gjo-Spatial Data Centre, Dehra-lun (Ministry of Water Resources, RivE- Development and Ganga Rejuvanation) for the year 2017-18. Public Disclosure Authorized

3Ø~rr Public Disclosure Authorized Audit Certificate

To, The Secretary to the Govermnent of India, Ministry of Water Resources, River Development & Ganga Rejuvenation, Govt. of India, Shram Shakti Bhawan, Rafi Marg, New Delhi- 110001. Audit Report on the Financial Statements of the Project: We have audited the accompanying financial statements of the World Bank assisted National Hydrology Project (NHP), Department of Science and Technology, Survey of India, National Geo-Spatial Data Centre, (DST, SOI, NGDC, Dehradun) under World Bank Loan No.8725-IN which comprise the Statement of Sources and Application of Funds and the

Reconciliation of claims to Total Application of Funds for the year ended 3 1St March 2018 (financial year ?017-18) Tliec >ratents 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 have conducted our audit iN accordance with the auditing standards promulgated by the Comptroller and Auditor General of India. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are fiee of material mis-statement Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statement. It also includes assessing the accounting principles used and significant estimates made by management as well as :vouaing the overall statement presentation. We believe that our audit provides a reasonable bais h1! our opinion.

In our opinion, the financial statements present fairly, in all matcrial respects, the sources and applications of funds for the National Hydrology Project (NHP) for the year ended 31 st March 2018 in accordance with accounting stand.rcs. In addition, in our opinion, (a) with respect to the Statement of Expenditure. adequate supporting documentation has been maintained to support claims to the World Sank for reimbursement of expenditure of Rs. 5.42 crore incurred under the project and (b) except for ineligible expenditure of Rs 0.56 crore as detailed in the audit observations appended to the audit report, expenditure of Rs. 4.86 crore is eligible for financing under the Loan / Credit Agreement. During the course of audit, Statement of Expenditure / Financial statement amounting to Rs. 5.42 crore were examined which can be relied upon to support reimbursement of Rs.4,86 crore undet W:he Loan Agreement.

This report is issued without prejudice to CAG's right to incorporate audit observations in the Report of CAG of India for being laid before Parliament.

Director General of Audit (SD) Audit observations on Certification Audit of the National Hydrology Project (NHP)- for the year 2017-18 of Sol (DST), Dehradun i) No basic financial records, books of accounts, like Cash Book, Stock Register, Asset Register, TA Register, Advance Register, Contingent Register, activity register etc., has been maintained by the Survey of India, for NHP and the Statement of Expenditure has been prepared on the basis of expenditure booked by the Pay and Accounts Office/DDO due to which the correctness of the expenditure incurred could not be verified in Audit. ii) As per Memorandum of Agreement separate bank account in a scheduled bank for the NHP should be maintained by the PMU of the date/central implementing agencies. Funds received from nodal agency- MoWR have to be transferred to this account. Bank account should be a savings account and interest earned should be reflected in the UCs. One person had to be designated for operating this account. However, no such account was opened as on (late, Further, NGDC, Dehradun had written in August 2018 to SOI as well as DST in this regard, but matter was still pending for want of approval of competent authority.

Appropriate action to open separate bank account as per MoA and prepare Bank Reconciliation Statement regularly for ihe same needs to be taken. iii) An amount of Rs 31,31,000 (Annerue-1) was booked under 2968 (81.2.05) survey activities for geoid model towards field survey,. However, no approved programme of field survey indicating details such a, narnes/dates/types of survey activities su

* NGDC, NHP office was required to register itself in eGem portal for procurement under the National Hydrology Project. However, NHP, NGDC did not register itself till date. * As per Ministry of Finance directions', EAT module of PFMS had to be implemented for WBAP - NHP. However, registration was pending for want of approval from Pr Accounts Office, DST, New Delhi. * As per financial guidelines of the project, Cash Book, Contractors' ledger, Cheques Issued Register, Bank Account and bank reconciliation statements and treasury account were to be maintained by NGDC, NHP, Dehradun. However, no such records were maintained under the said project except cash book. It was also observed that Cash book was maintained w.e.f. 27 November 2017 whereas project commenced in February 2017 (fi-om the date of receipt of first instalment of the grant). Moreover, opening balance was not mentioned in the cash book. Hjeace, the same could not be verified.

Further, in the cash book, details regarding fiom whom money was received, receipt no., amount deposited in Govt. A/c and to whom it was paid were not clearly mentioned. Also, cash book was not found closed daily as per rule.

From a s,rutiv of the stock registers (4) furnished by NGDC, NHP office, it was observed tat 12 no. of items valuing Rs. 14.48 Lakh were lying idle in stock since November 2017. It was further observed that most of these items costing Rs. 7.33 lakh (50 percent worth of total idle items) were procured at the fag end of the financial year 2017-2018. Obviously these procurements were made for exhausting the allocated finds and were therefore not for genuine requirement which contributed in pile-up of non-utilized stocks and thus, a clear case of violation of financial norms/prudence.

Dy. Director (EA) Statement showing the details of Reconciliation of claims of total application of funds during the year 2017-18 in respect of World Bank assisted National Hydrology Project National Geo Spital Data Centre, Dehradun

Total expenditure made during the year 5,42,15,941.00 Less ineligible expenditure 55,80,970 Amount reimbursable by bank 4,86,34,971

Dy. Director (EA) Annexure

Statement showing the details of disallowances made from the expenditure incurred during the year 2017-18 in respect of World Bank assisted National Hydrology Project (NHP) , National Geo spatial Data Centre (GDC) Central Agency - Survey of India, Dehradun

S.No Reasons for disallowance Amount disallowed (Rs. In INR) 1 An amount of Rs 31,31,000 (Annexure-1) was booked under 2968 (81.2.05) survey activities for geoid model. However, no approved programme indicating details such as name of the survey activities i.e rece, gravity, measurement, levelling to be carried out and the area in which these activities proposed, dates of survey activities concucted etc. were not 31,31,000 mentioned. Thus it could not ascertained that survey pertained to Geoid field activities.

2 An amount of Rs 3,78,075 (Annexure-Il) incurred on 14 vehicles 3,78,075 towards maintenance and repairing of 14 excess vehicles used for filed work was disallowed as only nine vehicles were approved for field operation in AWP.

3 An amount of Rs 6,50,000 towards outward claim related to 1,80,706 foreign visit was settled from the NHP head out of which Rs 1,80,706 related to Maj Gen V P Srivastva, S G for New York tour and Dr S Subha Roa. SG for Sydney tour which did not pertain to NHP. 4 As per AWP eight clerks/typist were approved for hiring at PDO. 18,91,188 Audit however, observed that centre engaged one computer typist @ Rs 22,200 and 8 labours @ Rs 16,924 - for PDO for the year 2017-18. It was further noticed that the payment to these nine persons were made without obtaining relevant documents viz their Attendance Register, place where they deployed, work allotted to them etc.. Hence it could not be established that they were working for NHP. Therefore an amount of Rs. 18,91,188 was disallowed. Total 55,80,969

Dy. Director (EA)