AUDITOR'S REPORT Secretary Medical Education & Family Welfare Division Ministry of Health and Family Welfare Bangladesh Secretariat, Dhaka. I. We have audited the accompanying Financial Statement of the "4th Health Population and Nutrition Sector Program (HPNSP) " financed by GOB Development fund as at 30"' June/2018 and for the year then ended. Preparation of IUFRs is the responsibility of management. Our responsibility is to express an opinion on the IUFRs/ FS based on our audit. II. We have conducted our audit in accordance with ISSAI Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the IUFRs are free from material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the FS. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall FS presentation. We believe that our audit provides a reasonable basis for our opinion. III. a) We have collected several Data and Financial Statements of all twenty nine Line Directors of this programme before execution of field audit. We selected the auditable unit/LDs/Cost Centers by following a sampling system. We have analyzed the risk of expenditures of all Line Directors. Based on this risk analysis, we fixed-up a materiality level as well as materiality threshold in our audit planning before commenment of field audit. We furnished our opinion based on our materiality threshold. b) The results of our audit disclosed the following material aspects which affects the financial statement: i. Huge discrepancies found between the Expenditure Statement issued by the Ministry of Health & Family welfare and the Financial Statements prepared by different Line directors of HPNSP. Financial Statement is understated amounting to BDT3966.90lakh. ii. Huge discrepancy found in comparison with Expenditure Statement of Line Director and Expenditure Statement of MOHFW Financial Statement is overstated by amounting BDT. 2195.47 lakh. IV. In our opinion, except as stated in a Financial Statement , the preceding paragraph and non-compliance of financial rules and regulations in subsequent observations along with the management letter following the Financial Statement gives a fair view, in all material aspects, of the financial position of "4' Health Population and Nutrition Sector Program (HPNSP)" as on 30 June/ 2018 and the results of its operations and cash flows for the year then ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. V. Opinion Status: Qualified. 4 (Tanima Tanim) Deputy Director for Director General Foreign Aided Project Audit Directorate Tel: 9362190. E:\Armanl Sector-2\Report(S-2)\2017-18\1iPNSDP-2017-18\ \67-HPNSP(IV)-Final,OI ... 09-01-2019.docx 12 Ministry of Health and Family Welfare Health Service Division Financial Management and Audit Unit 4h Health, Population and Nutrition Sector Programme (4"' HPNSP) Project Financial Statement 30"' June, 2018. (Figure in Lakh Taka Cumulative Cumulative Current Resources Notes Prior Period Period Current Period Covernment of Bangladesh 1 107668,45 235659.50 343327.95 RPA (GOB) 2 - 175770.12 175770.12 Other resources/DPA 3 1830.00 53315.33 55145.33 Grant frm Development Partner 4 - Cash opening ba-Idnce 5 - 16039.56 16039.56 Total Resources 109498.45 480784.51 590282.96 ErXpenditure and Cash (According to PP) 14500-4700 Pay & Allowances 18122.18 33954.41 52076.59 2.4800 Supply & Services 24933.59 240838.84 267330.25 3.4900 Repair and Maintenance 393.09 1858.01 2253.83 4.5900 Grants in Aid 1611.55 1611.55 5. 6800 Acquisition of Asset 16493.90 98695.43 115292.03 6 .7000 Civil works 42426.58 56131.11 98557.69 7 CD/VAT 525.00 13150.00 13675.00 8 DPA 1830.00 15553.48 17383.48 Total Expenditure . 104724.34 461792.83 568180.42 Cash Closing Balance Inipiest Account Operating Account (RPA) - 16692.88 16692.88 Operating Account (GOB) 2298.80 - (Surrendered) Total Expenditure and Cash 104724.34 480784.51 (Pros!tin Kanti Paul) Jf Audit& Accounts Officer Foreign Aided Prolects Audit Directorae Audit Complex (6th Floor) Segunbagicha, Dhaka-1000 Ministry of Health and Family Welfare Health Service Division Financial Management and Audit Unit 4'h Health, Population and Nutrition Sector Programme (4"' HPNSP) NOTES TO FINANCIAL STATEMENT 30th June, 2018 IL GOVERNMENT OF BANGLADESH: Fund are allocated by the Government of Bangladesh to cover GOB's share of eligible project expenditures, as specified in the Project and in the Project Proforma and in the Annual Development Programme for each of the project. Any allocated funds that have not been expended by the end of a fiscal year lapse and must be returned to GOB. GOB contribution to the project since inception are as follows (In Lakh Taka) 2, LOAN/GRANT FROM DEVELOPMENT PARTNER: Inception to 30th For the year Inception to 30th June 2017 2017-2018 June 2018 Disbursement by GOB 108756.65 257601.48 364319.34 Less: Refund to GOB 5862.31 21941.98 27783,64 Total: 102894.34 235659.50 338553.84 The (name of Development Partner) has provided funds to the project to cover it's share of eligible project expenditures. These funds, which must be repaid to (name lender/Donor) after the conclusion of the project, have been drawn by the project in accordance with the following withdrawal procedure (in Lakh Taka), Inception to 30th For the year Inception to 30th June 2017 2017-2018 June 2018 Initial Deposit (Advance) -- DPA ( Direct Payment) 1830.00 9,238.17 11068.17 RPA (GOB) 157770.12 157770.12 RPA (Non SOE Procedure) - 44077.16 44077.16 PA As a grant Others/ Total 1830,00 229085.45 230915.45 3. OTHER RESOURCES: Other resources consist of the following: Inception to 30th For the year Inception to 30th June2017 2017-2018 June 2018 Project Revenues Exchange gains/ losses Total 4. CASH: Inception to 30th For the year Inception to 30th June 2017 2017-2018 June 2018 Imprest Account Operating Account (RPA) Cash - 16039.56 Opening Balance Operating Account (GOB) - Total 16039.56 (Proshon anti Paul) yPf< Audit & Accounts Officr5 Preign Aided Projects Audit DiedoraT( 0 Audit Complex (61h Floor) Segunbagicha, Dhaka-1000 Auditors's Re rto SeiaA cun 1. Our audit was carried out in accordance with International Standards on Auditing guidelines. Accordingly, our audit included such review of internal control, tests of the accounting records and supporting documentation, verification of account balances and other auditing procedures that we considered necessary under the circumstance. '2. There was provision of DPA and RPA (through GOB) fund during the period of July/2018 to June/2018 (4t' HPNSP). No Special Account was maintained due to fund was disbursed through Consolidted Fund. (Tanima Tanim) Deputy Director for Director General Foreign Aided Project Audit Directorate Tel: 9362190. E:\Armnan\Sector-2\Report(S-2)\20 17- 8LNSDP.2017- 18\567-HPNSP(1V)-FinaI-0 I------09-01-2019.do=x 13 AUDITOR'S REPORT Secretary Health Services Division Ministry of Health and Family Welfare Bangladesh Secretariat, Dhaka. I. We have audited the accompanying Financial Statement of the '" Health Population and Nutrition Sector Program (HPNSP)" financed by GOB Development fund as at 30 June/2018 and for the year then ended. Preparation of IUFRs is the responsibility of management. Our responsibility is to express an opinion on the IUFRs/ FS based on our audit. II. We have conducted our audit in accordance with ISSAI Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the IUFRs are free from material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the FS. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall FS presentation. We believe that our audit provides a reasonable basis for our opinion. III. a) We have collected several Data and Financial Statements of all twenty nine Line Directors of this programme before execution of field audit. We selected the auditable unit/LDs/Cost Centers by following a sampling system. We have analyzed the risk of expenditures of all Line Directors. Based on this risk analysis, we fixed-up a materiality level as well as materiality threshold in our audit planning before commenment of field audit. We furnished our opinion based on our materiality threshold. b) The results of our audit disclosed the following material aspects which affects the financial statement: i. Huge discrepancies found between the Expenditure Statement issued by the Ministry of Health & Family welfare and the Financial Statements prepared by different Line directors of HPNSP. Financial Statement is understated amounting to BDT85736.53lakh. ii. Huge discrepancy found in comparison with Expenditure Statement of Line Director and Expenditure Statement of MOHFW. Financial Statement is overstated by amounting BDT 53004.40 lakh. IV. In our opinion, except as stated in a Financial Statement, the preceding paragraph and non-compliance of financial rules and regulations in subsequent observations along with the management letter following the Financial Statement gives a fair view, in all material aspects, of the financial position of " 4ti' Health Population and Nutrition Sector Program (HPNSP)" as on 30 June/ 2018 and the results of its operations and cash flows for the year then ended in accordance with the cash basis of accounting followed by the Government of Bangladesh. V. Opinion Status: Qualified. (Tanima Tanim) Deputy Director for Director General Foreign Aided Project Audit Directorate Tel: 9362190. E:\rmran\Sector-2\Report(S-2)\2017-1 8\HPNSDP-2017-18\568.HPNSP(IV)-Final-0[ (Volume-I&ll)--.09-01-2019.docx 21 Ministry of Health and Family Welfare Health Service Division Financial qanagement and Audit Unit 4 Health, Population and Nutrition Sector Programme (4' HPNSP) Project Financial Statement 30" June, 2018. _Figure in Lakh Taka ) Cumulative Cumulative Current C1rn t ReSOurces Notes .356Current Goveonment of Bang! es No Prior Period Period period ve rient of IBan0adesh1 10 8 3¯5.4 343327.95 RPA (GOB) 2 175770,12 1/5770.12 Ollr esources/OPA 1830.00 53315,33 55145.33 nt -fr DeCdopnent Pal tnm 4 asli rpening balance 5 16-039.56 16w9 Tota Resoures 109498.45 480784.51 590282.96 I Xtpenditure and_Cash (According ýo PP) 14500-4700 Pay & Allowances 18122.18 33954.41 52076.59 2.4800 Supply & Services 24933.59 240838.84 267330.?.5 3./900 Repair and Maintenance 393,09 1858.01 2253.83 -4.5900 Grants in Aid - 1611.55 1611.55 5.6800 Acquisition of Asset 16493.90 98695.43 115292.03 6.7000 Civil works 42426.58 56131.11 98557.69 7.CD/VAT 525.00 13150.00 l3675.00 8 DPA 1830.00 15553.48 17383.48 Ttl Expe_dr 1724¯34 46179283 58182 Cash Closing Balance niprest Account Operating Account (RPA ) 16692.88 16692.88 Operating Account (GOB) 2298.80 (Surrendered) Total Expenditure and Cash 104724.34 480784.51 (Proso (-anF Pauln fmme Aud;t & A Audfitco p tô c) Ministry of Heali and Family Welfarc Health Service Division Financial M alagement kund Audit Unit 4h Health, Population and Nutrition Secior Progrn ne (f HPNSP) NOTES TO FiNANCIAL ST ATEIE NT 30. Jun.e. 2018 GOVERNMENT OF BA GLADESH: Fund are allocated by the Government of Ban8ladesh to cover GOB's share of eligible proJect expenditures. as specified in the Project and in the Project Proforma and in the Annual Development Programme for each of the project. Any allocated funds that have not been expended by the end ofa fiscal year lapse and must be returned to GOB, GOD contribution to the project since inception gii as follows (In Lakh Taka 9 LOAN/GRANT FROM DEVELOPMENT PARTNER: inception to 30. For thir year Inception to 30th jun e 2017, 2.17-201M -june, 2018 sbuselient L GOB IM/ 56.65 2 5760 1 8 36t 1934 Less: to GOB 5862.31 2i941.98 27783.64 Toti: 102894.34 2356f9.5'0 338553.84 L-- -- - - fhe (name of Development Partner) has provided funds to the projet to cover it's share of eligible project expenditures. These funds, which must be repaid to (name lender/Dnor) afe the conclusion of the project, have been drawin by the proiet in accordance with the following withdrawal procedure (in Lakh Taka). Incoption to 30t 1 lor tile yer Inception to 30th 3Jne 201'7 2017-2018 June 2018 Initial Deposit (Advance) DPA ( Direct Payment) 1830 0 9,238J 7 11068.17 1PA ( GOB) 57770.12 157770,12 RPA (Non SO Procedre) ä _4071 07716 [PÅ As a grant 1 Others/ Total 1830.00 229085.45 23091545 3, OTHER RESOURCES: Other resources consist of the followine: Ineeption to 30t For the year Inception to 30t1 June 2017 2017-2018 June 2018 Pr-oject Revenues Exchange gains/ losses T11otal 4, CASH: Inception to 30th For the year Inception to 30th June 2017 2017-2018 June 2018 Imprest Account - Operating Account (RPA ) Cash - 16039.56 Opening Balance Operating Account (GOB) Totil a03956 e2j GEM2) Auditor's Report on Special Account 1. Our audit was carried out in accordance with International Standards on Auditing guidelines. Accordingly, our audit included such review of internal control, tests of the accounting records and supporting documentation, verification of account bhlances and other auditing procedures that we considered necessary under the circumstance. 2. There was provision of DPA and RPA (through GOB) fund during the period of July/2018 to June/2018 (4th HPNSP). No Special Account was maintained due to fund was disbursed through Consolidted Fund. (Tanima Tanim) Deputy Director for Director General Foreign Aided Project Audit Directorate Tel: 9362190. E:\Aman\Sector-2\Rport(S-2)\2017-18\HPNSDP-2017-18\568-IIPNSP(V)-Final-01 (Volume-I & 11)---- 09-01-2019,docx 22