RASOOL SINGHAL & CO. SD-29, SHASTRI NAGAR, CHARTERED ACCOUNTANTS CHAZIABAD (U.P) 201002 M 09312258364; 09811242760 E cajitendergoel@gmail.com Audit Report-Unqualified Opinion Report on the Project Financial Statements We have audited the accompanying financial statements of the Uttarakhand Health System Development Project financed under World Bank Credit No.5948 IN. which comprise of: (a) The Statement of Sources and Applications of Funds and (b) The Reconciliation of Claims to Total Applications of Funds for the year ended 31" March 2018, these statements 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 Institute of Chartered Accountants of India (ICAI). Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 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 applications of funds of Uttarakhand Health System Development Project (UKHSDP) for the year ended 31.03,2018 in accordance with the Accounting Standards issued by the ICA]. In addition, in our opinion: (a) With respect to IUFR's, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred. and (b) Except for ineligible expenditures as detailed in the audit observations, if any, appended to this audit report, expenditures are eligible for financing under the Loan/Credit Agreement. During the course of the audit, IUFR's for period ending 30"' September 2017 claiming reimbursement of Rs. 29.41 Jakhs and IUFR for period ending 31" March 2018 claiming reimbursement of Rs. 37.36 lakhs and the connected documents were examined and these can be relied upon to support reimbursement under the Loan/Credit Agreement. M/s Rasool Singhal & Co. FRNo: 500015N SIN Chartered Acountan O S DehradUnOP CA Tarmender K, Partner - 0 Acc Membership No: 42987. Dated : December 18, 2018 Place : Debra Dun Scanned by CamScanner Annexure1 UKHSDP PROJECT-5948 IN Sources and used of Funds (Amount in Rs. Lakhs) e clonab Eligib Reimbur Reimbu itue lea e sement rsable Particulars le Expen %een raoun -e ditue % amount FOR FOR the year the year (3) = (1) Sources 1 2 -(2) 4 5-3x4 0 enin Bank Balance 394.09 394.09 80% Add: Amount received during the year Add: Interest 0.20 -0-.2-0- -- Total Sources 394.29 394.29_ _ __ Expenditure by Component: Component 1:Innovations in engaging the rivate sector-- -- - - -- Sub-component 1.1: Innovations in inte ated delivery of healthcare services_7_5 . 8 62.04 Sub-component 1.2: Innovations in Healthcare Financing Component 2: Stewardship and System Capacity building, Information System, Research as per PP TOTAL Uses (PROJECT EXPTAL U R E C 77.56 77.56 80% 62.04 316.726 316.72 Closing Balance 6 Shailendra Shankar Singh Finanlce ComnptrC'ter Diro Finance Project Director Notes: 1. This financial statement is prepared on -basis of accounting. 2. Any other project specific Note. Scanned by CamScanner UKISDP PROJECT-5948 IN Reconciliation of Claims to Total Applications of Funds Ann 2 (Rs. in Lakhs) Scheule Curentl Pevo Pjcto lear. Year date, Bank ,Fund s claimed (A) 1 6 667.76 6 Withdrawal claims for l"'half year as per IUFR 29.4 .40 37 Withdrawal claims for 2r half year as per IUFR 6 37.3 .3A 3 6 663 6 Total Bank funds claimed 66.7 .76 6.7 Total expenditure made during the year (B) 77.5 77 Expenditiure as per books of account 6 .56 Less: Ineligibie expenditure (C) 'II Expenditures not claimed (D) Total eligible expenditure claimed (E)=-(B)- 6 .56 ()-(D) 62.0 62 WVorld Banki-Jhare @ 80% of (E)=(F) 4 .04 Excess/ Shortage of claims over expenditure 4.272 4 (A)-(F) 40 cza IhnlkarSig Project Director Directo as Notes: uring the year (B above) must be the same as the Total Project . Total expenditure made d n the Statement of Sources and Applications of Funds. Expenditures (tcla ie (D above) may reflect timing differences for eligible expenditures incurred during the year but claimed after the year end. Scanned by CamScanner Uttarakhand Health System Development Project 2nd Floor, Indian Red Cross Society Building P.O. Gujrara, DandaLakhond, Sahastradhara Road, Debradun, Uttarakhand E-mail:-apd.ukhsdra2gmail.com Notes to Accounts Forming Part of Balance Sheet as on 31.03.2018 1) Opening Balance of Grant was Rs. 3,94,09,473.50. No further amount was received in FY 2017-18 as Grant in aid. The total expenditure reported for the project was Rs. 77,56,400 which also includes security deposit of Rs. 10,000. 2) Interim Unaudited Financial Report - IUFR for the project has been submitted half-yearly for the period ending 30.09.2017 and 31.03.2018. An expenditure amounting to Rs. 66.76 lakhs has been claimed as reimbursement which exceeds by eligible amount by Rs. 4.72 lakhs. The same is claimed to be adjusted in the FY 2018-19. 3) TDS on salary from April 2017 to December 2017 was deducted however not deposited. TDS for the period apart from Rs. 60,000 was deposited in January 2018. The balance Rs. 60,000 was deposited on August 2018 alongwith interest and penalty. M/s Rasool Singhal & Co. FRNo.500015N Chartered Acc C hraLn CA Tarmender Partner Membership No. 429873 Scanned by CamScanner