OFFICE OF THE ACCOUNTANT GENERAL
(ECONOMIC AND REVENUE SECTOR AUDIT), TAMILNADU
No.AG (E&RSA) NI (C) CDN IV,2019-20161                        Dated: 100612019
To
The Chief Engineer. WRD.
Stare Ground & Surface Water Resource
Data centre. Public Works Department.
Tharsmani.
Chennai- 600 113.
Sir.
Sub: Issue of Audit Certificate for the veasof 2016 to 2019 - Re-
Ref. Your letterNo.Bl1/6587iNHP/Audit Certificate/dared 07.03.2019
&1105.2019 addressed to AG (E&RSA).Chennai.
With reference to vour letter cited. I wish to state that the Audit Certificate in
respect of The National Hydrology Prject (NiHP) for the period of 2016-17. 2017-I8 &
2018-19 is enclosed herewith.
Kindly acknowledge the receipt of the Audit Certificate.
Yours faithfully,
Senior Audit Officer/WvM (C)
t1 T' 361. 3pri m  tk  - 600 01S.  Pr Bhavan'. 361, Anna Salai. Cbennzi - 600018.
v,uPhone: 044 - 24316660 to 6666: t/Fn: 04 - 2431 1659 fUR/Telegram: "ATJITWO Chennai
t_4-#/E-mail: agautl3Iadu2@cag.gov.in
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OFFICE OF THE ACCOUNTANT GENERAL
(ECONOMIC AND REVENUE SECTOR AUDIT), TAMILNADU
.         No.AG (E&RSA)/WM (C) /CDN IV/2019-20/61                        Dated: 10/06/2019
Report of the Comptroller and Auditor General of India
To
The Chief Engineer, WRD,
State Ground & Surface Water Resource
Data centre, Public Works Department,
Tharamani,
Chennai.
Report on the Project Financial Statements
We have audited the accompanying financial statements of National Hydrology
Project (NHP) financed under World Bank Loan No. 8725-N, which comprises the
Statement of Sources and Applications of Funds and the Reconciliation of Claims to Total
Applications of Funds for the period 2016-17, 2017-18 & 2018-19. Preparation of 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 conducted our audit in accordance with the Auditing Standards promulgated by
the Comptroller and Auditor General of India. 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 presented. We believe that our audit provides a reasonable
basis for our opinion.
"#  T'"T 361, 3u  WA, V  - 600 018, "Lekhn Pariksha Bhavan", 361. Anna Sali, ChaNi - 600 018.
i1M/Phone,:044 -24316660to6666: t-,M/Fax: 044 -2431 1659 uff/Telgram: "AUDTTVO" Chennai
t-iR/E-mail: aguianii1nadu2@cag.goY.in
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in our opinion, the financial statements present fairly, in all material respects, the
sources and applications of funds of National Hydrology Project (NHP) for the period
2016-17, 2017-18 and 2018-19 in accordance with Government of India accounting
standards.
In addition to our opinion, (a) with respect to Statement of Expenditure, adequate
supporting documents are maintained to support claims to the World Bank for
reimbursements of expenditure incurred, and (b) except for ineligible expenditure as
detailed in the audit observation (Annexure A) appended to this audit report, expenditures
are eligible for financing under the Loan/Credit Agreement. During the course of the audit,
Statement of Expenditure aggregating to Rs.99,47,860/- and the connected documents were
examined. Out of these amount,Rs.97,48,260 is allowable and the vouchers can be relied
upon to support reimbursement under the Loan/Credit Agreement (As detailed vide
Annexure-A)
Period    Amount (Rs.)
2016-17       Nil
2017-18     5,84,049
2018-19     91,64,211
Total   97,48,260
This report is issued without prejudice to CAG's right to incorporate the audit
observations in the Report of CAG of India for being laid before Parliament/State or UT
Legislature.
Sr. Deputy Accountant General (ES-I)
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Annexure-A
Inadmissible claim of Expenditurc
Estimate for "Renewal and Replacement of Computers and Peripherals in respect of
Ground Water Division, Trichy" was technically sanctioned for Rs2 lakh. As against the
supply,  the  division  made   the  payment of    Rs.1,96,278/-(Rs.1,99,600-3,322
GST=Rs.1,96,278) twice vide vouchers No.93 and 94 of March 2019. The duplicale
payment was, however, received back during April 2019 (ie. Next year 2019-20). Ilence an
expenditure of Rs.1,99,600/-(duplicate payment) is to be disallowed from  eligible
expenditure for the year 2018-19. Thus, the allowable expenditure Ior 2018-19is
Rs,91,64,211 (Rs.93,63,81 I- Rs,1,99,600)
Sr. Deputy Accountant General (ES-1)
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