Auditor's Report Project Director Enhancement of Capacity of Grid Substations and Transmission Lines for Rural Electrification (ECGSTLRE) Project. 80, Mohakali, Dhaka 1. We have audited the accompanying Financial Statements of the "Enhancement of Capacity of Grid Substations and Transmission Lines (ECGCTL) for Rural Electrification Project "financed by IDA Credit No.5381-BDfor the year 2018-2019 and for the year then ended. The Preparation of the Financial Statement is the responsibility of management. Our responsibility is to express an opinion on the Financial Statement based on our audit. II. We have conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform audit to obtain reasonable assurance about whether the Financial Statement is fiee from material misstatement. An audit includes examining, on a test basis, evidences supporting the amounts and disclosures in the Financial Statements. 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. Ill. In our opinion, except for the matter described above as basis for the opinion, the Financial Statement gives a fair view fair view in all material aspects of the financial position of the "Enhancement of Capacity of Grid Substations and Transmission Lines (ECGCTL) for Rural Electrification Project" as of 30"' June, 2019 and for the year 2018- 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. IV Opinion Status: Unqualified. (Md. Tafazzal Hossain) Deputy Director For Director General Foreign Aided Project Audit Directorate. Phone: 8391547. Power Grid Company ot Bangladesh Ltd. f,nhian,cem-cenlt of Capacity of Grid Substations and Transmission Lines(ECGSTL) for Rural Electrification Project Financial Stateinant As on 30th June' 2019 _______in ilIakh Tk Resources Notes Cumulative Prior Current Perod Cunulative Current Period Period ov, ngladesh (GOB) G06 - CDVAT 11,400.00 2,000.00Y 13,400.00 Loan From Development Partner(1DA) 2 35,058.23 7,196.43 42,254.67 Designated Account-B (IDA) 14,751.27 8,068.87 22,820.14 Othe.r Resources (PGCB) 3 6,654.33 484.56 7,138.89 Closing Balance Cash opening Balance (CDVAT) _ C_ash o ening Balance (DA-B) 2,116.87 Cash opening Balance (PGCB) 531.96 Total Resources 67,863.83 20,398.69 85,613.69 Ependiture & Cash Material & EquipmentfTransmission line & Sub-Station Construction and Consultancy 50,771.36 16,135.17 66906.54 Advance payment to Contractors 1,772.33 (1,723.44) 48.89 land Ac_quisition & Compensation 4,946.89 166.25 5, 113.14 CDVAT 11,400.00 1,820.00 13,20.000 F,niure & Fixtures 4.24 4.24 Office Equipment 3.66 - 3.66 Light Vehicles 145.00 - 145.00 [D!C 95.91 95.91 Overhed Expniturer(Salay, 0 ic ex .etç. 1,186.34 374.74 1,561.08 Others (Route ,SurveytEA etc.) 17.96 - 17.96 Retention Money (Reserved) (5032.80) 51,48.61) (6,581.41) Ttal Expenditure 65,215.00 5,320.02 80,535.02 Cash closing Balance lnprest Account - - Operating Acrount CoNTASA(RPA/DPA) 2,116.87 4,613.Q1 4,613.91 Operating Accouni(PGCB) _531.96 2849247284.76 Closing Balance(With Custom House) -180.00 180.0 Total Closing balance 2,648.83 038.67 5,078.67 TotalExpenditure & Cash 67,863.83 20,398.69 85,613.69 Note: Closing Bank Balance including Cost of Instituitiona Strengthening of PGCB, Project, (Md.Shakowat Hossain Khan) (Mohd.Shahid Hossain) Manager (Accts & Admin) SE & Project Director ECGSTTL Project EGSTTL Project PGCB, 80, Mohakhali, Dhaka. PGCB, 80, Mohakhali. Dhaka. /V Enahancement of Capacity of Grid Substations and Transmission Lines(ECGSTL) fot Rural Electrification. NOTES TO FINANCIAL STATEMENT As on 30th June' 2019 1. GOVERNMENT OF BANGLADESH TK. In Lakh, Inception to 30th June 2018 For the year 2018 - 2019 Inception to 30th June 2019 Disbursement by GOB COV CDVAT 11,400.00 2.000.00 . 13,400.00 Less: Refund to GOB Total 11,400.00 2,000.00 13,400.00 2. LOAN FROM DEVELOPMENT PARTNER Inception to 30th June 2018 For the year 2018 - 2019 Inception to 30th June 2019 Initial Advance(Designated Account) 4,000.00 - 4,000.00 Drict Payment 35,058.24 7,196.43 42,254,67 RPA (SOE Procedure) j RPA(None SOE Procedure) 10,751.27 8,068.87 18,820.14 _ _ _ _ _ _ _ 49,809.51 15,265.30 65,074.81 3. OTHER RESOURCES Inception to 30th June 2018 For the year 2018 - 2019 Inception to 30th June 2019 Other Resources (PGCB) 6,654.33 484.56 7,138.89 Project Revenues _ Exchange gains/Lossess - Less: Refund to PGCB _ _ Total 6,654.33 484.56 7,138.89 4, CASH Inception to 301h June 2018 For the year 2018 - 2019 Inception to 30th June 2019 Imprest Account Operating Account(RPA) Closing Balance, (With custom House) Exchange Account(GOB) Total (Md.Shakowat Hossain Khan) (Mohd.Shahid Hossain) Manager (Accts & Admin) SE & Project Director ECGSTTL Project ECGSTTL Project PGCB, 80, Mohakhali, Dhaka. PGCB, 80, Mohakhali, Dhaka. AUDIT OPINION ON SOE We have audited the Statement of Expenditure (SOE) of "Enhancement of Capacity of Grid Substations and Transmission Lines (ECGCTL) for Rural Electrification Project" for the year ended on 30th June 2019 submitted to the IDA for replenishment of expenditure of Imprest Accounts in accordance with the Financial Agreement-5381-BD, dated: 19 June,2014 and read in conjunction executed with the PGCB. The audit was conducted following International Standards on Auditing. Accordingly, it included such tests of the accounting records and supporting documentation, verification of assets, review of systems of internal control, so far exists and adopting necessary auditing procedures that we considered essential under the circumstances. WITHDRAWAL/SOE PARTICULARS During the year the project authority submitted one (01) withdrawal applications. However, no replenishment has been received by the project to the Special Account. INTERNAL CONTROL The project is being implemented by the PGCB of Ministry of Power Energy & Mineral Resources is the sponsoring Ministry as well as the executing agency of the project. The PGCB is headed by an Executive Project Director of the level of a Superintending Engineer to the Government, The Executive Project Director is supported by 34 officers and staff was working for the project as per RADP. " The project authority utilized project fund as per instruction of the PPR-2008, Delegation of Financial Power & IDA procurement guideline. " Expenditure was incurred by project authority after getting authorization and following Govt. rules & regulations both GOB and IDA, except some lapses which are mentioned in the management letter under Section-Il of this report. " Internal control system of the project is satisfactory. V Monitoring & supervision system is proper. " As per RADP office equipment and other assets were procured for the project activities. OPINION: In our opinion, except as discussed in the Management Letter, the SOE can be relied upon to support the applications for Loan/Grant disbursement by the IDA for the expenditure incurred for the purposes of the project as specified in the particulars of withdrawal applications. (Md. Tafazzal Hossain) Deputy Director For Director General Foreign Aided Project Audit Directorate. Phone: 8361947. AUDITOR'S REPORT ON SPECIAL ACCOUNT We have audited one Special Account Statements of the "Enhancement of Capacity of Grid Substations and Transmission Lines (ECGCTL) for Rural Electrification Project"for the year ended on 30th June, 2019 under provision of IDA advance no 5381- BD. 2. Our audit was carried out in accordance with International Auditing Guidelines. Accordingly, our audit included such review of systems 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 circumstances. 3. The accompanying one Special Account Statements were prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above loan covenant and the related co financing agreements, 4. In our opinion, the receipts are properly accounted for and withdrawals were made for the purpose of the project in accordance with the loan/grant agreement and the above Special Account Statement gives a true and fair view of the beginning and ending balances and the account activity for the year ended 301h June, 2019 on the basis of cash deposit's and withdrawal's. (IVid. Tafazzal Hossain) Deputy Director For Director General Foreign Aided Project Audit Directorate. Phone: 8361947.