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Nepal Country Office Yak and Yeti Hotel Complex Kathmandu ma 0 of Roads ; ROAD SECTOR DEVELOPMENT PROJECT' Public Disclosure Authorized Date: - 7 th March 2018 Mr. Luquan Tian Task Team Leader The World Bank Nepal Country Office Yak and Yeti Hotel Complex Kathmandu. Public Disclosure Authorized Sub: - Road Sector Development Project, Road Sector Development Project(IDA Credit No.: 5865-NP) Audited Project Account, Fiscal Year - 2016/2017(2073-2074) 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.: Public Disclosure Authorized 5865NEP . Thanking You. Yours Sincerely, (BimalaAdhigari) Account Officer Cc: Office of Auditor General, Babar Mahal. Public Disclosure Authorized Ministry of Physical Planning and Works, Singha Durbar. Financial Comptroller General Office, Reimbursement Section, Anamnagar. Director General, Department of Roads, 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 (RSDP AFIl)" financed by IDA Grant No 5855-NEP 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 5865-NEP 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 (RSDPAFII) (IDA Credit No.:- 5865-NEP) (IDA Project ID Number: P157607) AUDITED Project Account FY 073-74 (2016/2017) (Period between 16 July 2016 to 15 July 2017) Kathmandu Nepal Report 1 Government of Nepal Ministry of Physical Planning and Works Department of Roads 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 Notes to Account Cumulative up to Description Previous Fiscal Year Fiscal Year (2016117) Cumulative to Date (2015116) Budget Allocation Support 2 3,175,874,000.00 3,175,874,000.00 Approved Allocation - A. Opening Cash/Bank Balance - - - - 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 - Total (A+B) - 155,822,362.00 155,822,362.00 C. Uses of Funds by Category/ Component 1. Works under part I (F & G) of the project (29611-100%) Support 1 2. Works under part 1 (A & E) of the project (29611-50%) 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 (3-4-5+6)i aA ikari Sanjaya K. Shrestha Thaneshwor Gautam Gopal Prasad Sigdel Mun Kumar f.C. Devendra Karki Ram Accounts Officer Prqject Coordinator Chief Accounts Kumar Acharya Mohadatta Timilsina Controller DG Under Secretary Secretary FCG RSDP RSDP DOR DAG DOR MoPIT MoPIT FCGO OAG Note I Government of Nepal Ministry of Physical Planning and Works Department of Roads 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 A GoN Reimbursable Fund Released 142,697,362.00 142,697,362.00 Total Funds Released 155,822,362.00 155,822,362.00 B Transfer to GoN Treasury from Designated Account Total C Total Funds used from GoN Treasury (A-B) - 155,822,362.00 155,822,362.00 GoN Fund Expenditure 13,125,000.00 13,125,000,00 D Less: Source to be changed to GON source Net GoN Expenditure 13,125,000.00 13,125,000.00 GoN Reimbursable Funds: GoN Reimbursable Fund Expenditure 142,697,362.00 142,697,362.00 E Source to be changed from GoN source Less: Reimbursement Received 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 Sanjaya Kumar Shrestha Account Officer Program Coordinator RSDP RSDP Government of Nepal Ministry of Physical Planning and Works Department of Roads 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 - 5. Foreign Exchange Gain/Loss (+/-) - 6. Closing Designated Account Balance at the end of Reporting Period (3-4+5) Amount in USD Particulars Cumulative up to Reporting FY Cumulative to Date Remarks FY 2015/16 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 CASH REQUIREMENT Particulars NPR USD 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 1,940,605,762.00 18,866,476.40 Less: Closing Balance Less: Fund Claimed with IDA but yet to be accounted - Net Cash Requirement from IDA for next 2 Trimesters 1,940,605,76 2.00 18,866,476.40 Note: Exchage rate on July 15, 2017 is 10286 Biaal hikari Sanjaya Kumar Shrestha Account Officer Program Coordinator RSDP RSDP Report 3 Government of Nepal Ministry of Physical Planning and Works Department of Roads Road Sector Development Project (Credit No. 5865) FY. 16 July 2016 to 15 July 2017 Statement of Expenditure Amount In NPR Cumulative FY (2016117) Balance Budget Line Item No. Category Description! Component No. Total Project Cost Expenditure upto Annual Budget Cumulative Previous FY Allocation Year-to-Date % Amount (2015/16) % Expenditure to Date 1 3 4 5 6 10 = (7+8+9) 11 12 (10/6*10} (4-10) (12/4*100)13 14 (5+10) 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 Sanjaya Kumar Shrestha Account Officer Program Coordinator RSDP RSDP Support 1 Government of Nepal Ministry of Physical Planning and Works Department of Roads Road Sector Development Project (Credit No.
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