Audited Project Financial Statements

Project No. 34418-023

Loan: 3302-BAN, 0441-BAN

Period Covered: 1 July 2017 to 30 June 2018

BAN: Southwest Area Integrated Water Resources Planning and Management Project - Additional Financing

Prepared by Bangladesh Water Development Board

For the Asian Development Bank Received on 31 December 2018

The audited project financial statements are document owned by the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff. These documents are made publicly available in accordance with ADB’s Access to Information Policy and as agreed between ADB and Bangladesh Water Development Board.

Auditor's Report

Secretary Ministry of Water Resources Bangladesh Secretariat, Dhaka.

Audit completion date: 09-12-2018

We have audited the accompanying Financial Statement (FY 2017-2018) of the "Southwest Area Integrated Water Resources Planning & Management Project-Phase-2(AF)" financed under ADB Credit no. 3302-BAN(SF) & Dutch Grant No. 0441 -BAN(EF) as of 30th June 2018 and for the years then ended. According to ISSAI 1570 the preparation of Financial Statement is the responsibility of management. Our responsibility is to express an opinion on the financial statement based on our audit.

We conducted our audit in accordance with International Standards on 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.

In our opinion and according to the statement of ISSAI 1705, the financial statement gives a true and fair view in all material respects of the financial position of Southwest Area Integrated Water Resources Planning & Management Project-Phase-2(AF)" Project" Project as of 30th June 20 I 8 and the result of its operation and cash flows for the year ended in accordance with the cash basis of accounting followed by the Government of Bangladesh.

The project accounts properly presents the expenditure and receipts for the year ended at 30th June 2018.

Opinion Status: Unqualified.

E:\RSL VI\Co-ordination/ A I R Checklist

~ .,g (Sarkar Mohammad Khairul Alam)

Deputy Director For Director General

Foreign Aided Projects Audit Directorate Phone: 88-02-8391548

Page 5

Name of the Project: Southwest Arca Integrat ed Water Resources Plann ing and management P roj ect-2nd Phase (Addi t iona l F inancing)

(Project Financial Statement)

30'" June, 20 18 (Figure in Lakh Taka)

C umulative P r ior C ur rent Period

C umula tive

Resources Notes Period Per iod upto

30-~-17 201 7-2018 30-q'l- l 8

(a) (b) (c) (d) (c)

Government of Bangladesh I 678.74 812.40 1,491.1 4

Loan from Development Partner RPA Imprest Advance) 2 1,296.75 1,296.75

Loan from Development Partner ( Retroactive Financing) 2 50.16 50.1 6

Loan from Development Partner RPA Replenishment 497.90 1,881.55 2,379.45

Loan from Development Partner 100.02 615.50 715.52

(ADB & Netherlands) DPA -

0pening Balance of CD VAT -

Opening balance of Imprest Account 97.44 180.65 278.09

Opening balance of Operating NC 10 1.22 433.66 534.88

Total Resources 2,822.23 3,923.76 6,745.99

Expenditure and Cash

GOB :

A) Pay of Establishment Code no 4700 60.70 67.54 128.24

B) Supply & services: Code no 4800 3 19.60 309.96 629.56

C) Repair Preservation & Rehabilitation: (Code No-4900) 8.23 3. 19 11 .42

D) Purchase & Procurement of Assets ( Code No-6800) 284.28 145.10 429.38

E) Construction & Works (Code No-7 I 00) 5.93 76.6 1 82.54

F) CD&VAT ( CodeNo-7901) 190.62 190.62

S ub- Total 678.74 793.02 1,471.76

RPA:

A) Pay of Establishment Code no 4700 25.97 42. 11 68.08

B) Supply & services: Code no 4800 985.05 1,076.30 2,061.35

C) Repair Preservation & Rehabilitation: (Code No-4900) 54.07 19.58 73.65

D) Purchase & Procurement of Assets ( Code No-6800) 13 1.84 45.50 177.34

E) Construction & Works (Code No-7 100) 33.57 435.87 469.44

F) Bank Charge

Sub-Total 1,230.50 1,619.36 2,849.86

DPA:

A)Supply & services: Code no 4800 100.02 513.54 613.56

B) Purchase & Procurement of Assets ( Code No-6800) 101.96 I 01.96

C) Purchase & Procurement of Assets ( Code No-7 100)

Sub-Total 100.02 615.50 715.52

Total Expenditure [ {GOB+ RPA +DPA} (A)) 2,009.26 3,027.88 5,037.14

Cash Closing Balance

Special; Account (Imprest Account) 278.09 22.20 300.29

Project Operating Account (RPA) 534.88 854.30 1,389.18

Balance of CD VAT 19.38 19.38

Total Expenditure and Cash (B) 4 812.97 895.88 1,708.85

Total C=(A+B) 2,822.23 3,923.76 /'I 6,745.99

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Audit Opinion On SOE

We have audited the statement of Expenditure (SOE) of the accounts of Southwest Area

Integrated Water Resources Planning & Management Project-Phase-2(AF)" financed under ADB

Credit no. 3302-BAN(SF) & Dutch Grant No. 0441-BAN(EF) for the year 2017-2018.

The audit was conducted following International Standard on Auditing. Accordingly it

included tests of the accounting records and supporting documentation, review of system of

internal controls. So, far necessary for auditing procedures that we considered essential under the

circumstances.

In our opinion, the SOE can be relied upon to support the applications for loan

disbursements by Asian Development Bank (ADB) for expenditure incurred for the purposes of

the project as specified in the particulars 'of withdrawal applications.

E:\RSL VI\Co-ordination/ A IR Checklist

3\,\'2,1~ (Sarkar Moham ad Khairul Alam)

Deputy Director For Director General

Foreign Aided Projects Audit Directorate Phone: 88-02-8391548

Page 8

Bank Account Information.

,amc of the Project Southwest Arca Integrated Wate ,· Resources P lanning And Management Project-2nd Phase (Additional F inancing)

Agreement No. & date

Name of the Deve lopment Partner:

ADB Loan No. - 3302 BAN (SF), 13.1 2.2015.

ADB & GON (Government of Netherlands)

1. Bank where Imprest Account is kept:

Name

Address

Account No.

Bangladesh Bank

Head offi ce, Motijheel , Dhaka-1000.

ADB Loan No-3302- BAN (SF) & GoN No-0441-BAN (EF)

Bank Balance as on 01-07-2017: BDT. (3 ,73,222.42 + 1,76,91,639.98) = 1,80,64,862.40 Bank Balance as on 30.06.2018 : BDT. (] 8,21,145.52 + 3,98,826.99) = 22,19,972.51

(Bank Statement enclosed) 2. Bank where operating AJC (GOB) is kept: Not applicable

Name

Address

Account No.

Bank Balance as on 1-7-2017:

Bank Balance as on 30.6.2018:

3(i). Bank where operating AJC (RP A) is kept:

Name

Address

Account No.

Janata Bank Limited.

Goalchamat Branch, Faridpur

SND-0100043381886 (ADB)

Bank Balance as on 01-07-2017 Account no : SND-010004338 1886 (ADB)- 3,63,95,119.94

Bank Balance as on 30-06-2018 Account no: SND-0100043381886 (ADB)- 3,95,51,055.11

3(ii). Bank where operating AJC (RP A) is kept:

Name

Address

Account No.

Agrani Bank Limited.

Bus stand Branch, Faridpur

SNTD-0200008085449 (GON)

Bank Balance as on 01-07-2017 Account no: SNTD-0200008085449 (GON)- 69,70,860.23

Bank Balance as on 30-06-2018 Account no : SNTD-0200008085449 (GON)- 4,58,79167.88

(Bank Statement enclosed)

SPECIAL ACCOUNTS STATEMENT(IMPREST) Project Name: Southwest Area Integrated Water Resources

Planning and Management Project-2nd Phase (Additional Financing) (ADB Loan No-3302-BAN (S F) & Dutch G.-ant No-0441-BAN (EF)

For the Year Ending

Account No

Depository Bank

Address

Related Loan / Credit Agreement no.

Related Loan / Credit Agreement Currency

Part-A, Account Activity

Opening Balance Add i)Total Amount deposited by Donor

ii)Total deposited in this FY

Total Amount Refunded to Cover in Eligible Expenditure

Deduct: Total Amount withdrawn (2017-2018)

Total Service Charges if not included above in amount withdrawn

Ending Balance, as on 30.06.2018

Part-B, Account Reconciliation

: June 30,2018

: ADB Loan No 3302-BAN (SF) & Dutch Grant No-0441- BAN (EF)

: Bangladesh Bank.

: Motijheel, Dhaka.

: ADB Loan No 3302 BAN (SF) & Dutch Grant No-0441-BAN (EF)

: U.S Dollar Loan: 4,50,00,000.00 & Grant: 70,00.000.00

: (Figure in Lakh Taka)

:BOT : BOT (3,73,222.42 + 1,76,91,639.98)= 1,80,6,4862.40 : BDT (12,94,47,923.11 + 5,87,07,187.01)= 18,81,55,110.12

:BOT (12,64,68295.29 + 5,64,19570.26) = 18,28,87865.55

: BDT. 20,40,00000.00.00 ( 12,80,00000.00 + 7,60,00000.00)

: Nil.

: BDT. (18,21,145.52 + 3,98,826.99)= 22,19,972.51

1. Amount Advanced by ADB & GON : BDT (8,06,75000.00 + 4,90,00000.00)= BDT 12,96,75,000.00 (USD 10,10,000.00 +USD 6,25,000.00)=USD 16,35,000.00)

2. Less Total Amount Recovered By ADB & GON : BDT-Nil

(USD)- Nil 3. Equals Present Outstanding amount advanced to

The Special Account at fiscal year ended : BDT (8,06,75000.00 + 4,90,00000.00)= BDT 12,96,75,000.00 (USD 10, 10,000.00 +USD 6,25,000.00.00)=USD 16,35,000.00)

4. Ending Balance of Special Account at Fiscal Year Ended as Per Bank Statement: BDT. : BDT.(18,21,145.52 + 3,98,826.99)= 22,19,972.51

5. Plus Amounts claimed and not yet credited At Fiscal Year Ended (30.06.20ii) : BDT. Nil

6. Plus Amounts Withdrawn and Not Yet Claimed On 30.06.2018 : BOT 12,74,55,027.49(7,88,53,854.48+ 4,86,01, 173.01)

7. Less Interest Earning (if Including in Special Account) Nil. 8. Plus Service Charges (if Not Included in Line 5 and 6

Above) : N il 9. Equals Total Advance to Special count Accounted

For at Fiscal Year Ended : BOT (8,06,75000.00 + 4,90,00000.00)= BOT 12,96,75,000.00 I 1\ \ 1i (USD 10, 10,000.00 +USD 6,25,000.00)=USD 16,35,000.00)

(Mr\. f\ ,; e; . i , ,ant) t ·. ,);~.~t Director .. :., ii,,;,~:,; ·~ p. t,F , \.J..!'.b •,:•,, ,:,;....: ... • ,:.:H...._l_., "1 ,,,,~

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Bank Account Infor1nation.

,ame ;J the Project . . Southwest A,·ea Integrated Water Resources Planning And Management Project-2nd Phase (Additional Financing)

Agreement No. & date

_ . Name of the Development Partner:

/\Im Loan No. - 3302 BAN (SF), 13. 12.2015.

/\1)13 & CON (Government of Netherlands)

1. Bank where Imprest Account is kept:

Name

Address

Account No.

Bangladesh Bank

Head office, Motijheel, Dhaka-] 000.

ADB Loan No-3302- BAN (SF) & GoN No-0441-BAN (EF)

Bank Balance as on 01-07-2017: BDT. (3,73,222.42 + 1,76,91 ,639.98) = 1,80,64,862.40 Bank Balance as on 30.06.2018: BOT. (18,21,145.52 + 3,98,826.99) = 22,19,972.51

(Bank Statement enclosed) - 2. Bank where operating A/C (GOB) is kept: Not applicable

Name

Address

Account No.

Bank Balance as on 1-7-2017:

Bank Balance as on 30.6.2018:

- 3(i). Bank where operating A/C (RP A) is kept:

Name

Address

Account No.

Janata Bank Limited.

Goalchamat Branch, Faridpur

SND-0100043381886 (ADB)

Bank Balance as on 01-07-2017 Account no : SND-0100043381886 (ADB)- 3,63,95,119.94

Bank Balance as on 30-06-2018 Account no: SND-0100043381886 (ADB)-3,95,51,055.11

l(ii). Bank where operating A/C (RPA) is kept:

Name

Address

Account No.

Agrani Bank Limited.

Bus stand Branch, Faridpur

SNTD-0200008085449 (GON)

Bank Balance as on O 1-07-2017 Account no : SNTD-0200008085449 (GON)- 69, 70,860.23 Bank Balance as on 30-06-2018 Account no: SNTD-0200008085449 (GON)- 4,58,79167.88

(Bank Statement enclosed)

Auditor's Report on Special Account.

1. We have audited the Special Account of the accounts of Southwest Area Integrated Water

Resources Planning & Management Project-Phase-2(AF)" financed under ADB Credit no.

3302-BAN(SF) & Dutch Grant No. 0441-BAN(EF) for the Year 2017-201

2. Our audit was carried out in accordance with International Auditing Guidelines. Accordingly

our audit includes such review of system of internal control , tests of accounting records and

supporting documentations, verification of accounts balance and other auditing procedures

that we considered necessary under the circumstances.

3. The accompanying Special Account Statement was prepared on the basis of cash deposits

and withdrawals for the purpose of complying with the above loan covenant.

4. In our opinion, the receipts are properly accounted for and withdrawals are made for the

purposes of the project in accordance with the Loan 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 30 June, 2018 on the basis of cash deposits and

withdrawals.

5. The special account is being maintained according to the approval of Finance Division. The

withdrawal of money is in accordance with authorization of Finance Division.

E:\RSL VI\Co-ordination/ A IR Checklist

~ ,~ (Sarkar Moham rul Alam)

Deputy Director For Director General

Foreign Aided Projects Audit Directorate Phone: 88-02-8391548

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