AUDITOR'S REPORT Secretary Health Services Division and Medical Education & Family Welfare Division Ministry of Health and Family Welfare Bangladesh Secretariat, Dhaka. 1. We have audited the accompanying Financial Statement of the "Health Population and Nutrition Sector Program (HPNSP)" financed by GOB Development fund as at 30 June/2017 and for the year then ended. Preparation of IUFRs is the responsibility of management. Our responsibility is to express an opinion on the IUFRs/ FS based on our audit. I. We have conducted our audit in accordance with ISSAI Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the IUFRs are free from material misstatement. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the FS. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall FS presentation. We believe that our audit provides a reasonable basis for our opinion. III. a)We have collected several Data and Financial Statements of all twenty nine Line Directors of this programme before execution of field audit. We selected the auditable unit/LDs/Cost Centers by following a sampling system. We have analyzed the risk of expenditures of all Line Directors. Based on this risk analysis, we fixed-up a materiality level as well as materiality threshold in our audit planning before commenment of field audit. We furnished our opinion based on our materiality threshold. b) The results of our audit disclosed the following material aspects which affects the financial statement: Huge discrepancy found in comparison with Financial Statement of Line Director and Expenditure Statement of MOHFW. Financial Statement is overstated by amounting Tk.10,00,00,000./= IV. In our opinion, except as stated in a Financial Statement , the preceding paragraph and non-compliance of financial rules and regulations in subsequent observations along with the management letter following the Financial Statement gives a fair view, in all material aspects, of the financial position of "Health Population and Nutrition Sector Program (HPNSP)" as on 30 June/ 2017 and the results of its operations and cash flows for the year then ended i accordance with the cash basis of accounting followed by the Government of Ba ladesh. V. Opinion Status: Qualified. (Kazi Zah gir Alimed) Deputy Director for Director General Foreign Aided Project Audit Directorate Tel: 9362190. Ministry of Health and Family Welfare Health Services Division Financial Management and Audit Unit 4th Health, Population and Nutrition Sector Programme (4th HNPSP) Project Financial Statement 30th June, 2017 Figure in Lac Taka Resources Notes Cumulative Current Period Cumulative Current Prior Period Period Government of Bangladesh 1 107668.45 107668.45 RPA (GOB) 2 - Other resources/DPA 3 1 1830.00 1830.00 Cash opening balance 4 Total Resources - 109498.45 109498.45 Expenditure and Cash (According to PP) 1. 4500-4700 Pay & Allowances - 18122.18 18122.18 2. 4800 Supply and Services - 24933.59 24933.59 3, 4900 Repair and Maintenance - 393.09 393.09 4. 6800 Acquision of Assets - 16493.90 16493.90 5. 7000 Civil Works - 42426.58 42426.58 6. CD/VAT - 525.00 525.00 7. DPA 1830.00 1830.00 7 8 9 10 11 12 13 14 Total Expenditure - 104724.34 104724.34 Cash Closing Balance Imprest Account RPA (GOB) Operating-- Total Expenditure and Cash - 104724.34 104724.34 Ministry of Health and Family Welfare Health Services Division Financial Management and Audit Unit th 4 Health, Population and Nutrition Sector Programme (4th HNPSP) Project Financial Statement 30th June, 2017 1. Government of Bangladesh Funds are allocated by the Government of Bangladesh to cover GOB's share of eligible expenditure, as specified in the project and and in the Project Proforma and in the Annual Development Program 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 contributions to the project since inception are as follows (in Lac Taka) Inception to 30th- For the year 2016- Inception to 30th June, 2016 2017 June, 2017 Disbursement by GOB - 108756.65 1 0 8 7 5 6 .6 5 Less: Refund to GOB - 5862.31 5862.31 Total 102894.34 102894.34 2. Loan from Development Partner The (name of the Development Partner) has provided funds to the project to cover it's share of eligible project expenditures. These funds, which must be repaid to (name lender/Donor) after the conclusion of the project, have been drawn by the project in accordance with the following withdrawal procedure (in Lac Taka).. Inception to 30th For the year 2016- Inception to 30th June, 2016 2017 June, 2017 Initial Deposit (Advance) DPA (Direct Payment) 0.00 1830.00 1830.00 RPA (GOB) RPA (Non SOE Procedure) others Total 0.00 1830.00 1830.00 3. Other Resources Other resources consist of the following: Inception to 30th For the year 2016- Inception to 30th June, 2016 2017 June, 2017 Project Revenues Exchange gains/Loses. Total 4. Cash Inception to 30th For the year 2016- Inception to 30th June, 2016 2017 June, 2017 Operating Accounts (RPA) Operating Accounts (GOB) Total Auditor's Report on Special Account 1. Our audit was carried out in accordance with International Standards on Auditing guidelines. Accordingly, our audit included such review 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 circumstance. 2. There was no provited in DPA and RPA fund during the period of January/2017 to June/2017 (40' HPNSP) . IL \> (Kazi Zahangir A imed) Deputy Director for Director General Foreign Aided Project Audit Directorate Tel: 9362190.