Auditor's Report Audit Completion Date: 11-12-2019 Secretary Ministry of Environment, Forest and Climate Change Bangladesh Secretariat, Dhaka. I. We have audited the accompanying Financial Statement of the " "Sustainable Forests and Livelihoods (SUFAL) Project"." as on 30't June, 2019 and for the year then ended. According to ISSAI 1570 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 there are several observation raised in the time of audit in the year of 2018-19, so Financial Statement did not show a true and fair view in all material aspects. IV. In our opinion the Financial Statement did not gives a fair view in all material aspects of the financial position of " Sustainable Forests and Livelihoods (SUFAL) Project" as at 30st 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. V. Opinion Status: Unqualified. (Md. Tafazzal Hossain) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 88-02-8391547 - 10- I. (ilir e Peopl>% Reipiblie of Bangladesh l.e ores(s ;mil Livelilood (SLFAL) Project l1 in lihlaban Akgair-gaion, Dliak-1207 Projee linaneial Stalement -_ 30lh .inne, 2019 ___ _. _____ __ (Figure in Lakh Taka) Tr.Nøles Cu vPrior Current Period Cuiulative Currnt Plerilod Period (hwemment of'Banigladeshl- 461.15 461.15 (irAnit/Loan from Develop. Partner (WB)-PIU - 12,425.32 12,425.32 Cash Opening Balance - Total Resources 12,886.8 12,8868 Expendliture and Cash Revenue Expienditure: Travel Expenses (MoEFCC/PMU/Consuljant/Cosi Centers/Ochers) 23.05 23.05 VAT oftie consultant- Co nent-4-(Go) 4.1 .1 Poslage 0.65 0.6 Telephone -0.83 0.83 Regitration Fees- Vehicle-(GoB) 12.80 12.20 Gas of Motor Velicle (Pick-up, Jeep)-(GoB) - 0.17 0.17 Fuel and Luricant ofMotor-cycele and Motor Ve5icle-(GoB) .007 0.07 Staionery seai and stamps 16.62 16.62 Advertising and Publicity (Procureen, etc.) - 28.06 28.06 Tatining 52.12 52.12 Seminar, Conference - 12.24 12.24 Tea/Coffee/Snacks expenses (PMU) 1049 049 Wildlife Capture, Transpodation and handling 5.00 5.00 Wildlife Treatment, medicine 4.95 4.95 Consultancy service -96.58 96.58 Honrrariui/Fees/Remuneration for Mee3ing/ Workshop/ Seminar/ Consultation, etc.-(GoB) 5.00 5.00 Survey (Forest Inventory, WL, P.A., Etc.) 16.16 16.16 Computer Consumables 5.35 5.35 Hiring Charges (4Vehile, etc.) 3.81 3.81 Meeting expienses 1.02 1.02 Miscellaneous expenditures 168.02 168.02 Comtputers and offrce equipmnent 3.25 3 3.25 Office Building R&M 0.82 0.82 Olher repair and Mainienance -3,26 3.26 Asset Acquisition: Jeep (4WD)- PD/DPD/PMU/Field/MoEFCC-1 90.85 90.85 Motor-cycle (150 CC)- Field limpilemnentation 99.55 99.55 Pick-up (4WVD-DoublecCabin)-PMU/MoF-1 &Field 236.34 236.34 Laptop Computer- HQ & CF/DFO/Range 0.65 0.65 Furnifture & Fixures -74.39 74.39 Affresialion -2,363.03 2,363.03 Refrigerator, Telephone 178 178 Boundary wvalt 93.09 93.09 Total Expenditure -3,434.18 3,434.18 Cash Closing Balance Imprest & Operating Account 9,452.07 9,452.07 Petty cash 0.23 0.23 Total Casli closing balance -9,452.30 -9,452.30 Total Expernditure and Cash 12,886.48 12,8848 (Md. Monsuruzzallan Khan) Senior Financial Mlanagement SpeCiaist T Zahir Ud i Ahrmed stisainable Forests and LivelihOOds (SUFAL) Projet P Ban Bhaball Agaipaon, Dhåka.1207 sof.tii PrjcD rtQ hiQll &ti{lod(SAL rft Nt I I I ' FINANCIAL STATEMENT 3L th June, 2019 I l. i ll.n I , 1- l -i iin, iii c- Bangladesh to cover GOB's share of cligible project expenditures, as specified 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 only in kind manner since inception are as follows (In Lakh Taka) Inception to 30th For the year Inception to 30th June 2018 2018-2019 June 2019 Disbursement by GOB - 461.154 461.154 Less: Refund to GOB _ _- - Total: - 461.154 461.154 2 GRANT FROM DONOR T1ie World Bank has provided funds to the projet to cover its share of eligible peoject expenditures. Inception to 30th For the year Inception to 30th June 2018 2018-2019 June 2019 Initial Deposit (Advance) - 12,000.00 12,000.00 DPA (Direct Payment) Fund Received - - Interim A/C - - __ RPA (SOE Procedure) - 425.32 425.32 RPA (Non SOE Procedure) Others - - - Total: - 12,425.32 12,425.32 3 OTHER RESOURCES Other resources consist of the following: Inception to 30th For the year Inception to 30th June 2018 2018-2019 June 2019 Cash Contribution -- RPA (SOE Procedure) - Total:-- 4 The Project maintains twelve bank account, an convertable bank account and an operating accounting. Year end cash balances were as follows (In Lakh Taka) Inception to 30th For the year Inception to 30th June 2018 2018-2019 June 2019 inprest & Operating Account - 9,452.07 9,452.07 Petty cash - 0.23 -0.23 Total: - 9,452.30 9,452.30 (Md. vionsuruzzaman Khan) Zahir Uddin Ahmed Senior Financial Management Specialist Project Director Sustainable Forests and Livelihoods (SUFAL) Project Plolec Bangladesh Forest Department t & ( l Ban Bhaban Agargaon,Dhaka.1207 Audit Opinion on Special Account We have audited the accompanying Statements of CONTASA account of the "Sustainable Forests and Livelihoods (SUFAL) Project", Financed by IDA Credit No: 6325-BD, for the fiscal year 2018-19. The preparation of Special Account Statement is the responsibility of management. Our responsibility is to express an opinion on the Special Account Statement based on our audit. Our audit was carried out in accordance with International Standards on Auditing. Accordingly, our audit included such review of the tests of the accounting records and supporting documentation, verification of account balances and reconciliation that we have considered necessary under the circumstances. The accompanying Special Account Statements were prepared on the basis of initial deposits and withdrawals for the purpose of complying with above credit agreement. However, the Special Account was maintained for "Sustainable Forests and Livelihoods (SUFAL) Project" under credit no. 6325- BD, In our opinion the receipts were properly accounted for and withdrawals were made for the purpose of the project in accordance with the credit agreement and the above special account statement gives a true and fair view of the beginning and ending balance and the account activity for the year ended 30 June, 2019 on the basis of cash deposits and withdrawals. (Tafazzal Hossain) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 8391547 - 14- Audit Opinion on SE We have audited the accompanying Statement of Expenditure (SOE) of the "Sustainable Forests and Livelihoods (SUFAL) Project" Financed by IDA under Credit No.: -6325BD, for the year 2018-19. The claims on the basis of SOEs are the responsibility of management. Our responsibility is to express an opinion on the SOEs based on our audit. The audit was conducted following International Standard on auditing which includes tests of accounting records and supporting documentations. In our opinion, Statement of Expenditure (SOE) can be relied upon, support the application for grant by IDA for the expenditure incurred for the purpose of the project as specified in the particulars of withdrawal application. Opinion Status: Unqualified. (Tafazzal Hossain) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 8391547 - 15 -