restricted The Republic of the Union of Myanmar Office of the Auditor General of the Union Letter No:Sa Hsa-3/2069/ (56/ 2018) Date: May 25, 2018 To Union Minister Ministry of Agriculture, Livestock and Irrigation Subject: Submission of Audit Report Reference: The Letter no.4/2000/mway yay kyae/ (118/2018) dated 9-2-2018 1. References made to the above mentioned request letter, we have audited the financial statement for the period from 2016-2017 financial year to 2017- 2018 financial year(up to 31-12-2017) of Flood and Landslide Emergency Recovery Project (FLERP) implemented by Department of Rural Development with World Bank's Loan (IDA-5889-MM). 2. We herewith attach Audit Report to be able to conduct as necessary. Attach - Audit report ( ) pages (Signed) Union Auditor General (on behalf of) (Khin San Oo, Permanent Secretary) Copy to Office file Floatfile restricted restricted The Republic of the Union of Myanmar Office of the Auditor General of the Union Audit Department Audit Report On The Implementation of Flood and Landslide Emergency Recovery Project (FLERP) The Financial statement for the period From 2016-2017 financial year to 2017-2018 financial year (31-3-2017) Financed by World Bank Loan (IDA-5889-MM) By Department of Rural Development, Ministry of Agriculture, Livestock and Irrigation Date: May25, 2018 restricted restricted Contents Sr.J- _ _ __ No. Particular Paragraph Page No From To From To 1 2 3 4 5 1 Introduction 1 - 1 2 Management's Responsibility for Financial 2 - 1 - Statements 3 Auditor's Responsibility 3 4 1 2 4 Audit Scope 5 - 2 - 5 Audit Opinion 6 - 2 - restricted restricted Audit report on the financial statement for the period from 2016-2017 financial year to 2017-2018 financial year (up to 31-12-2017)of Flood and Landslide Emergency Recovery Project (FLERP) implemented by Department of Rural Development, Ministry of Agriculture, Livestock and Irrigation with World Bank's Loan (IDA-5889-MM) Introduction 1. The Flood and Landslide Emergency Recovery Project (FLERP) implemented by Department of Rural Development, Ministry of Agriculture, Livestock and Irrigation with World Bank's Loan (IDA-5889-MM) will be continually implemented from 1-1-2018 by Department of Rural Road Development, Ministry of Construction. The Union Minister's Office (Head Office), Ministry of Agriculture, Livestock and Irrigation requested with the letter dated 9-2-2018 relating to audit the financial statement for the period ended from 2016 - 2017 financial year to 2017 - 2018 financial year (up to 31-12-2017). Therefore, the financial statement of Flood and Landslide Emergency Recovery Project (FLERP) relating to Component (2) Resilient Rehabilitation of Rural Roads and Livelihoods Support and Component (4) Project Management and Knowledge Support were audited by the Office of the Auditor General of the Union with the supporting documents in accordance with Union Auditor General Law and Generally Accepted Auditing Standards. Management's Responsibility for Financial Statements 2. Project's management is responsible to prepare financial statements in line with Financial Management Manual, standard and procedure for Project Accounting, International Public Sector Accounting Standard - Cash basis (IPSAS - Cash basis) . In addition the Project's Management has responsibility to make sure that the Financial Managements are free from material misstatement arising from fraud or errors,which can lead to the wrong management decision and regarding to internal control. Auditor's Responsibility 3. Our responsibility is to conduct audit on Financial Statements in accordance with Generally Accepted Auditing Standards and those standards restricted restricted require us to comply with ethical requirement for auditor and to give appropriate audit opinion as per audit findings after conducting audit with reasonable assurance whether the Financial Statements are free fi-om material misstatements. 4. During the course of audit, regarding the figures and disclosures Financial Statements, we optained audit evidences for evaluating errors and deficiencies and appling audit procedures based on auditor's assessment and judgement . We have obtained sufficient and appropriate audit evidences in order to provide a basis for audit opinion. Audit Scope 5. When auditing the financial statement for the period from 2016 - 2017 fiscal year to 2017-2018 fiscal year (up to 31-12-2017 ) of Flood and Landslide Emergency Recovery Project (FLERP) furded by World Bank's Loan (IDA- 5889-MM), the procurement of Office equipments, Office furniture, Motor vehicles and management expenditures were audited with Contracts, Vouchers, Goods Received Notes, Cash Book, Bank Statements and Fixed Asset Register. Audit Opinion 6. In our audit on the Financial Statement for the period from 2016 - 2017 fiscal year to 2017-2018 fiscal year (up to 31-12-2017) of Flood and Landslide Emergency Recovery Project (FLERP) implemented by Department of Rural Development with World Bank's Loan (IDA-5889-MM), it is opined that the project's Financial Statements have been prepared in accordance with International Public Sector Accounting Standard- Cash basis (IPSAS - Cash basis). Director General (on behalf of) (San San Win, Deputy Director General) Dated: May 25, 2018 restricted