Office of the Director General of Audit (Economic & Service Ministries) W K , ft-110 002 Indraprastha Estate, New Delhi-110 002 TT v.-r.-5/2(9)/ft. 4.Jt-.j '4.)/(20l7-l8)/2018-19I66c i1i0 2h 7 i~ 21 ft-a ior MUr qr(E H'Af110011 f4r: Audit Report, Audit Certificate and Management Letter in respect of World Bank assisted Capacity Building for Urban Development (CBUD), Project- Credit No.4997-IN, Ministry of Housing and Urban Affairs for the year 2017-18. Please find enclosed Audit Report, Audit Certificate and Management Letter in respect of World Bank assisted Capacity Building for Urban Development (CBUD) Project- Credit No.4997-IN- Ministry of Housing and Urban Affairs for the year 2017-18, along with Project Financial Statements for necessary action at your end. TW+c Telephone: +91-11-23403600, Fax: +91-11-23702359, E-mail : pdaesm@cag.gov.in Office of the Director General of Audit (Economic & Service Ministries) , f A-110 002 Indraprastha Estate, New Delhi-110 002 " TV.VW.-5/2(9)/f. #.4t.f.z.(f..)/(2017-18)/2018-19/6Fr7~ :2 U.21 Report of the Comptroller and Auditor General of India in respect of World Bank assisted Capacity Building for Urban Development (CBUD), Project Credit No.4997-IN, M/o Housing and Urban Affairs for the year 2017-18. f .0UI af4r, i4 i &-10 011. We have audited the accompanying Financial Statements of World Bank assisted "Capacity Building for Urban Development (CBUD)", Project- Credit No.4997-IN, Ministry of Housing and Urban Affairs which comprises Statement of Sources and Application of Funds and Reconciliation of Claims to total applications of funds for the year ended March, 2018. These statements are the responsibility of the Project Management. Our responsibility is to express an opinion on the accompanying financial statements based on our audit. We conducted our audit in accordance with the Auditing Standards promulgated by the Comptroller and Auditor General of India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material mis-statement. Our audit examines, on a test basis, evidence supporting the amounts and disclosures in the financial statements. It also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the Financial Statements present fairly, in all material respects, the sources and application of funds for World Bank assisted Capacity Building for Urban Development (CBUD), project credit No. 4997-IN for the year ended March, 2018 in accordance with Government of India accounting standards. Telephone: +91-11-23403600, Fax: +91-11-23702359, E-mail: pdaesm@cag.gov.in In addition, in our opinion, (a) with respect to interim unaudited financial reports (IUFRs)/Statement of Expenditure (Sol), adequate supporting documentation has been maintained to support claims to the World Bank for reimbursement of expenditure incurred; except for audit observations mentioned in this audit report and other observations included in the Management letter appended to this audit report, (b) Expenditures are eligible for financing under the Credit Agreement. During the course of audit, IUFRs/SoE amounting to Z 3024.897 lakh for the year 2017-18 and connected documents were examined, out of which Z 3009.733 lakh can be relied upon to support reimbursement under the Credit Agreement. The details of expenditure incurred, admitted and disallowed are mentioned in table below: (Z In lakh) Total Expenditure incurred 3024.897 Excess payment to the training entities 14.156 Excess payment to the consultant 1.008 Total amount of expenditure disallowed 15.164 Total amount of expenditure allowed for 3009.733 reimbursement This report is issued without prejudice to C&AG's right to incorporate the audit observations in the Report of the C&AG of India for being laid before the Parliament. Office of the Director General of Audit (Economic & Service Ministries) f R , ;4 -110 002 Indraprastha Estate, New Delhi-110 002 The Expenditure Statements of World Bank assisted Project Capacity Building for Urban Development (CBUI)), Project- Credit No.4997-IN, Ministry of Housing and Urban Affairs (MoH&UA) for the year 2017-18 attached hereto have been audited in accordance with the regulations and standards of audit of the Comptroller and Auditor General of India. We have accordingly included such tests of accounting records, internal checks and controls, and other auditing procedures necessary to confirm: a) that the resources were used for the purpose of the project; and b) that the expenditure statement/financial statements are correct. During the course of the audit, Internal Unaudited Financial Reports/Statement of Expenditure amounting to ? 3024.897 lakh and the connected documents were examined, out of which Z 3009.733 lakh can be relied upon to support reimbursement under Credit Agreement for the year 2017-18. On the basis of the information and explanations that have been obtained as required and according to the best of our information, as a result of the test audit, it is certified that the Expenditure Statements/Financial Statement read with the observations mentioned in the Audit Report and other observations included in the Management Letter appended to the Report, represents a true and fair view of the implementation of the Project for the year 2017-18. Telephone: +91-11-23403600, Fax: +91-11-23702359, E-mail: pdaesm@cag.gov.in Office of the Director General of Audit (Economic & Service Ministries) S*, qf