AUDITOR'S REPORT Audit completion date: 11.12.2019 Secretary Local Govt. Division Ministry of LGRD & Co-operatives Bangladesh Secretariat, Dhaka. I. We have audited the accompanying Financial Statement of the "Local Governance Support Project -3 " financed by IDA under Financing Agreement No. 5946-BD as on 30th June, 2019 and for the yeai then ended. The preparation of Financial Statement is the responsibility of the management. Our responsibility is to express an opinion on the Financial Statement based on our audit. II. We conducted our audit following International Standards of Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Financial Statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall Financial Statement presentation. We believe that our audit provides a reasonable basis for our opinion. III. In our opinion, except non-compliance of financial rules and regulations in subsequent observations along with the management letter following the Financial Statement gives a true & fair view in all material aspects of the financial position of "Local Governance Support Project -3" as at 30th June, 2019 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. The Project accounts properly present the expenditure and receipts for the year ended at 30- 06-2019. (IV) Revised Opinion Status: Unqualified. (Taslema R na) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 02-9361788 [Ref Project Audit Manual, FAPAD. Page: 4.7.1] Loca Governance Support Project-3 (L P-3) Project Financial Statement As on 30 June, 2019 Taka in Lakh Cumulative Current Cumulative Prior Period Period Current Period Government of Bangladesh 1 87,383;57 46,555.38 133,938.95 Loan From Development Partner 2 123,318.73 59,651.67 182,970.40 Cash Opening Balance - 13,135.69 Total Resources 210,702.30 119,342.74 316,909.35 Expenditure 1 Salary & Allowances 45.90 50.51 96.41 2 Basic Block Grant (BBG) and Performance 193,589.76 105,164.55 298,754.31 Based Grant (PBG) 3 Expanded Block Grant (EBG) 1,881.00 1,948.00 3,829.00 Technical Know-how Fee of Consultant and 699.52 1,627.71 2,327.23 Pay of DF and other Staff 5 Training, Workshop and Study Tour 8.30 47.29 55.59 6 Vehicle, Furniture, Computer, Printer, 115.65 0.20 1.5.85 Photoconier etc 7 Audit Fee, MIS, Survey etc 788.89 1,896.38 2,685.27 8 Other Expenses 437.59 614.73 1,052.32 Total Expenditure 197,566.61 111,349.37 308,915.98 Cash Closing Balance: CONTASA 4 10,100.56 7,285.03 7,285.03 DOSA 4 1,134.23 385.40 385.40 Operating Account (SBL, Ramna) for BBG, PBG 4 1,476.24 101.45 101.45 Operating Account (SBL, LO) for BBG, PBG 4 - - Operating Account (SBL, LO) for EBG 4 7 Operating Account: DDLG 10.01 221.49 221.49 Unspent GOB Balance 399.07 - Advance: PMU 15.58 - Total Cash Closing Balance 13,135.69 7,993.37 7,993.37 Total Expenditure and Cash 210,702.30 119,342.74 316,909.35 Sardar Saraf Ali SM A2- kt 2 Kabi National Project Director SM Abdul Motalib et ary Local Governance Support Project-3 Senior Finance Specialist DpyPo ieco(Am n r.c & Proc'! Local Governance Support Project-3 Local Government Support Project- Local Government Division Local Government Division LOCAL GOVERNANCE SUPPORT PROJECT-3 (LGSP-3) NOTES TO THE FINANCIAL STATEMENT 30th June, 2019 1 GOVERNMENT OF BANGLADESH. Funds are allocated by the Government of Bangladesh to cover GOB's share of of eligible project expenditure, as specified in the Development Project Proforma and in the Annual Development Prograrnme 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). Inception to For the year Inception to 30"' June, 2018 30"' June, 2019 30"' June, 2019 Disbursements by GOB 87,462.00 48,000.00 135,462.00 Less : Refunds to GOB 78.43 1,444.62 1,523.05 Total: 87,383.57 46,555.38 133,938.95 2 LOAN FROM DEVELOPMENT PARTNER The World Bank has provided funds to the project to cover its share of eligible project expenditure. These funds, which must be repaid to the World bank after conclusion of the project, have been drawn by the project in accordance with the withdrawal procedures (In Lakh Taka). Inception to For the year Inception to 30 June, 2018 30 June, 2019 30"' June, 2019 RPA (Report Based) BBG, PBG and EBG (DOSA) 111,368.73 58,251.67 169,620.40 Other Activities (CONTASA) 11,950.00 1,400.00 13,350.00 Total 123,318.73 59,651.67 182,970.40 3 OTHER RESOURCES. Other resources consists of the following Inception to For the year Inception to a 30 June, 2018 30' June, 2019 30h June,2019 Project Revenues - Exchange Gains /( Losses) - Total:S 8 VPFS FY 201 8-1 9.xlsx 4 CASH: The project maintains two special account namely: DOSA and CONTASA. The DOSA has been maintaining at Bangladesh Bank for Basic Block Grant (BBG), Expanded Block Grant (EBG) and Performance Based Grant (PBG) fund advanced by IDA and the CONTASA has been maintaining at commercial bank to deal with funds for remaining project activities other than BBG, PBG and EBG. In addition, the project has been operating bank account against DOSA in commercial bank. Year end cash balance were as follows (In Lakh Taka). Inception to For the year Inception to 30th June, 2018 30 June, 2019 30"' June, 2019 CONTASA 10,100.56 7,285.03 7,285.03 DOSA 1,134.23 385.40 385.40 Operating Account for BBG and PBG (Sonali 1,476.24 101.45 101.45 Bank Ltd, Ramna Corporate Br) Operating Account for BBG and PBG (Sonali Bank Ltd, Local Office, Dhaka) Operating Account for EBG (Sonali Bank Ltd, Local Office, Dhaka) DDLG Operating Account 10.01 437.75 437.75 Unspent GOB Balance 399.07 PMU Advance 15.58 Total 13,135.69 8,209.63 8,209.63 r arSara Ali S M Abdul Mottalib Project Dir ctor Senior Finance Specialist Local Governance upport Project-3 Local Governance Support Project-3 Local Government Division Dr. Md. Golarr Kab Joint Secretary DeputyProjedDiede(f Admin.Finance & Local Goverment Sunnorl P'pir - (Proshon Kanti Paul) Audit & Accounts Officer mIgruo Aided oects Audit Dirclorate W Audit Complex (6th Floor) Segunbagicha, Ohaka-1000 PFS FY 2018-19.xlsx Auditor's Report on Special Account (DOSA for fiscal transfer) * We have audited the Special Account Statements of "Local Governance Support Project - 3" for the year ended 30t' June, 2019 under the provision of IDA Financing Agreement No. 5946-BD dated 6th March, 2017. * Our audit was carried out following International Auditing Guidelines. Accordingly our audit included such review of systems of internal control, tests of accounting records and supporting documentation, verification of accounts balances and other auditing procedures that we considered necessary under the circumstances. * The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above financing Agreement. * In our opinion, reimbursements made by IDA are properly accounted for and withdrawals were made for the purpose of the project in accordance with the Financing Agreement. ( Taslem utana) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 02-9361788 Auditor'slReport on Special Account (CON ASAforallthe ctiitis oherthan fiscal transfes We have audited the Special Account Statements of "Local Governance Support Project - 3" for the year ended 30tt June, 2019 under the provision of IDA Financing Agreement No. 5946-BD dated 6t" March, 2017. Our audit was carried out following International Auditing Guidelines. Accordingly our audit included such review of systems of internal control, tests of accounting records and supporting documentation, verification of accounts balances and other auditing procedures that we considered necessary under the circumstances. o The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above Financing Agreement. In our opinion, reimbursements made by IDA are properly accounted for and withdrawals were made for the purpose of the project in accordance with the Financing Agreement. (Tas ema ultana) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 02-9361788