OFFICE OF THE CHIEF ENGINEER, PUBLIC WORKS DEPARTMENT, RAJASTHAN, JAIPUR No. SE(WB)/RRSMP/AG AUDIT/2018-19/D- 13o Date: 12 10fn-c 13 Justin Runji, TTL The World Bank, Washington D.C. Sub:- Rajasthan Road Sector Modernization Project (Credit 5310-IN) F.Y. 2017-18 Audit Report. Sir, Kindly find enclosed herewith copy of Audit Report Rajasthan Road Sector Modernization Project (Credit 5310-IN) Financial Year 2017-18 for your information and necessary action. Encs.:-As Above Your's Faithfully (Sunil Kumar Gupta) Chief Engineer (PMGSY) P.W.D. Rajasthan, Jaipur Copy to:-1.Anantha Krishna Karur,The World Bank, Financial Management Specialists,70, Lodi Estate,New Delhi-110003 2. Director, M.I. Division, Ministry of Finance,Govt. of India, New Delhi. Suni Kuar Gupta Chief Engineer (PMGSY) P.W.D. Rajasthan, Jaipur ~!/NO,.... .È 7' V-1421, Wiff - 302 005 INDIAN AUDIT AND ACCOUNTS DEPARTMENT OFFICE O IEPRINCPALACCOUliAIT GENRAL (GERAl ANDOSOCIAl SECIORlliffURAJASIA Janpath, Jaipur- 302 005 4 3020061 (Cr. No.53 10-IN "W --4 2017-18 -ETat k ~ 49T W;k W rKrr No.5310-IN)" W f4 2017-18 -t (Annexure4) ag 1 .T TUT 1 1 A er4n n3 z IIt T1 2. --rM f~<¤ 'q5 3. ~ Wlsl XMIT -gq nU~ VM. - Chief En ne (PMGS?) RR NoD. as - 2MU3H92385131, 2305232 :0141-2385181 ~:aar~abJ1Og9vI Toobna 2384309, 2385131,2385232 Fax :0141-238518 Blil guB8l@84 7t' Annexure 4 Re rt f te CrnAroller and Auditor General of Indianxr4 Chief Engineer(PMGSY) Public Works Department,Rajasthan Jaipur 302006 Reuort ~ ~ ontePoetFnncial Statement We have audited the accompanying financial statements of the "Rajasthan Road Sector Modernization Project (Cr. No. 5310-IN)" which comprises the Statement of Sources and Application of Funds and the Reconciliation of Claims to Total Application of Funds for the year ended 31-03-2018. 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 from 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 presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements present fairly, in all material respects, the sources and application of funds of "Rajasthan Road Sector Modernization Project (Cr. No. 5310-IN)" for the year ended 31-03-2018 in accordance with Government of India accounting standards. In addition, in our opinion, (a) with respect to SOE's, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred, and (b) except for ineligible expenditures as detailed in the audit observations, if any, appended to this audit report, expenditures are eligible for financing under the Loan / Credit Agreement. During the course of the audit, SOEs / FMRs and the connected documents were examined and these can be relied upon to support reimbursement under the Loan/Credit Agreement. This report is issued without prejudice to CAG's right to incorporate the audit observations in the Report of the CAG of India for being laid before Parliament/State or UT Legislature. Dy. Ac General G.S.S.- Sum of Up to IVlarch Head Div. Narne Year 2017-18 Demand No.51 5054- Capital Qutlay on Roads and Briges 04-District and Other Roads 789-Specific Comppnent for SC (12)-World Bank funded RRSMP [01]-Rural Approach Roads 74-Exp. On Const. of Roads & Brides (Plan)__________ 789 Sikandra 1653862 Bayana 3580458. Maipura 23038479 Khanpur 6920738 Bundi (WB) 26042117 Swaimadhopur (WB) 15624958 798 Total 76860612 v. Head Div. Name Sum of Up to March Year 2017-18 Demand No.30 5054- Capital Qutlay on Roads and Briges 04-District and Other Roads 796-Tribal Area Sub-Plan .(TAsP) (15)-World Bank funded RRSMP [01]-RuraLApproach Roads 74-Ekp. On Const. of Roads & Brides (Plan) 796 Begun 24374555 Awar n.1 .941937 Shahbad 49920222 7 oSwaimadhopur (WB) 2585608 77822322 Surn of up"to March H erad Div. Name Year 2017-183 Demand No.21 5054- Capital QutlaV on Roads and Briges. 04-District and Other Roads 800-Other Expenditure (21)-WOrld Bank funded RRSMP [011-Rural Approach Roads 74-Exp. On Const. of Roads & Brides (Plan) 800 -Amet 607529 Sikandra _754682 Udaipur Din.11 1502502 Nimbahera 11644239 Chhabara 1802369 . Bayana 522052 Bhilwara 69973 Begun 3971199 _ Dausa . .5034786 Mahwa 475570 City Div. 1, Jaipur 39370843 Alwar Dn.II 2793199 Aklera 2619186 Itawa 35474222 Bharatpur DinI 6906975 Kekri .7671117 New Delhi .542993 Behror 6373334 Tank 1141766 Malpura 679896 Khanpur 56277992 Bundi 281498 Shahpura Bhilwara (WB) 4088221 Swainiadhopur (WB) .5582698 IMandrail -8665492 800 Total -_._ 204854333 -, i. 'L- Head Sum of Up to March Div. Name Year 2 017-18 Demand No.51 5054- Capital Qutlay on Roads and Bridges 04-District and Other Roads 789-Specific Component for SC (12)-World Bank funded RRSMP [021-Road Safety Management 7 4-Exp. On Const. of Roads & Brides (Plan) City Div. 1. Jaipur 7106748 789 (02) Total 7074 7105748 Demand No.30 5054- Capital Qutlay on Roads and Bridges 04-District and Other Roads 796-TribaI Area Sub-Plan (TASP) (15)-World Bank funded RRSMP [02]-Road Safety Management 74-Exp. On Const. of Roads & Brides (Plan 796 (02) 796 (02) To C ty Div. I Jaipur 3729621 79 0)Ttal3792 3729621 Demand No.21 5054- Capital Qutlay on Roads and Bridges 04-District and Other Roads 800-Other Expenditure (21)-World Bank funded RRSIMp [021-Road Safety Management 74-Exp. On Const. of Roads & Brides (Plan) 800 (02) Jiu 800 (02) totalCity Div pur 45391120 45391120 Head DSum of Up to March Year 2017-18 3054- Capital Qutlay on Roads and Bridges 04-District and Other Roads 800-Other Expenditupe (02)-Rural Roads 104]-World Bank-Funded RRSMP (Incremental Operating Cost) 3054 (04) City Div. , Jaipur 4393229 3054 (04) Total 4393229 3054- Capital Qutlay on Roads and Bridges 04-District and Other Roads 800-Other Expenditure (02)-Rural Roads [05J-World Bank Funded RRSMP (Modernization) 3054 (05) City Div. I, Jaipur 97236213 3054 (05) Total 97236213 Grand Total 517394198 \ .*. g1~ S.NO. Budget Head Sum of upto March year 2017-18 5054-Capital Outlay on Roads and Bridges 04-District and qgher Roads.. 789-Specific Component for SC (12)-World Bank funded RRSMP. [013-Rural Approach roads 74-Exp. On Cont, of Roads & Bridges (Plan) Total 789 76860612 2 Demand No. 30 5054-Capital Outlay on Roads and Bridges 04-District and Other Roads 796-Tribal Area Sub-Plan (TASP) (15)-World Bank funded RRSMP. [011-Rural Approach roads 74-Exp. On Cont. of Roads& Bridges (Plan) Total 796 77822322 3 Demand No. 21 5054-Capital Outlay on Roads and Bridges 04-District and Other Roads 800- Other Expenditure . (21)-World Bank funded RRSMP. [01]-Rural Approach roads 74-Exp. On Cont. of Roads & Bridges (Plan) Total 800 204854333 Page Total (1) 359537267 Sum of upto March SNO. Budget Head year 2017-18 4 Demand No. 51 5054-Capital Outlay on Roads and Bridges 04-District and Other Roads 789-Specific Component for SC (12)-World Bank-funded RRSMP. (02]-Road Safety Management 74-Exp. On Cont. of Roads & Brides (Plan) Total 789 (02) 7106748 5 DemandNo.30 5054-Capital Outlay on Roads and Bridges 04-District and Other Roads 796-Tribal Area Sub-Plan (TASP) (15)-World Bank,funded RRSMP. (02]-Road Safety Management 74-Exp. On Cont. of Roads & Bridges (Plan) Total 196 (02) 3729621 6 Demand No. 21 5054-Capital Outlay on Roads and Bridges 04-District and Other Roads 800- Other Expenditure (21)-World Bank funded RRSMP. [02]-Road Safety Management 74-Exp. On Cont. of Roads & Bridges (Plan) Total 800 (02) 45391120 Page Total (2) J, 48 S.NO. Sum of upto March Budget Head . year 2017-18 - 7 Den and No. 21 3054-Capital Outlay on Roads and Bridges 04-District and Other Roads 800- Other Expenditure (02)-Rural Roads [04]-World Bank funded RRSMP (incremental Operating Costs) Total 3054 (04) 4393229 * Demand No. 21. 3054-Capital Outlay on Roads and Bridges 04-District and Other Roads 800- Other Expenditure (02)-Rural Roads. [051-World Bank fnded RRSMP (Modernization) Total 3054 (05) 97236213 Page Total (3) Grand Total VIT Anney-Ure-i Statement of Sources and Application of Funds (Projects implemented by core governme f tbe Project: Rajasthan Road Sector Modernization Project Credit No. IDA 5310IN Statement -of Sources 'n plCtoSo ud Report for the year-,ended ,M 218r0c_ In Rs. '000 Particulars Current Previous Project to Year Year date -Opening Balance, (if cash balances are controlled by the entity) (A) Re=ceipts -------- Funds received from. Government through Budget (These will include external assistance received by Government for the project.) 517394.198 8431772.931 8949167.129 Funds received-directly by Project Implementing Authority through external assistance. - Beneficiary Contribution (if any) - Total Receipts (B) 517394.198 8431772.931 8949167.129 Total Sources (C= A+B) .517394.198 8431772.931 8949167.129 Expenditures by Compon,ent A. Rural Connectivity Improvement 359537.267 8291144.183 8650681.450 B. Road Sector Modernization 97236.223, 90884.047 188120.260 C. Road Safety Management 56227.489 38485.045 94712.534 D1 Incremental operating Cost . 4393.229 11260.763 15653.992 Total Expenditures (D) 8431774.038 8949168.236 S - - Closing Balance- - -1J07 -.107 (ifcash balancesA re controlled by the entity) (C-D) Annexure-2 Reconciliation of Claims to Total Applications of Funds Name of the Project: Rajasthan Road Sector Modernization Project Credit No. IDA 5310 IN Statement of Sources and Applications of Funds . Report for the year ended March, 2018 (2017-18) Amt. fs. '000) Schedule s Current Year Previous Project to date Year Bank funds claimed during the year (A) I 351321.160 8161785.269 8513106.429 Total Expenditure made during the year (B) - 3 18 8431774.038 8949168.236 Less: Outstanding AC Bills (C) 0.000 49792.885 49792.885 Ineligible expenditures (D) I 0.000 0.000 0.000 Expenditures not claimed (E) IV *166073.038 848823.200 1014896.238 Total Eligible Expenditures Claimed (F)=(B)-(C)-(D)-(E) 351321.160 7533157.95 7884479.113 World Bank Share @ 70% & 800% of (F) 34138.929 5749915.844 6898262.869 above (G) (70%) + 242041.010 (80%) =276179.938 **872167.087 =1148347.025 Note: World Bank Share @ 70%& 80% of 166073-038 (Expenditure incurred during March, 2018) has been claimed in the month of April, 2018 and diseiiThment of Rs. 103418469/- ** Note: Disbursement of Rs. 872167087- was received during the.year 2017-18 for the expenditure incurred during the year 2016-17. Financial Advisor ~Chief Engineer (PlVrGSY) W ,ajsth MPWD, Rajasthan, Jaipur PWVD, Rajasthan,r --- -- Date: Date: Annexure-3 FICE OF THE CHIEF ENGINEER, OFFICEEDt. To, Pr. Accountant General (G&SS Audit) Rajasthan, Jaipur This assertion letter is provided in connection with your audit of the financial statements of the Rajasthan Road Sector Modernization Project for the year ended March, 2018 (2017-18). We acknowledge our responsibility for the fair presentation of the financial statements in accordance with the cash basis of accounting followed by the Government of India, and we confirm, to the best of our knowledge and belief, the following representations made to you during your audit. * The project financial statements are free of material misstatements, including omissions. * Project funds have been used for.the purposes for which they were provided. * Project expenditures are eligible for financing under the Loan/Credit agreement. * There have been no irregularities involving management .or employees who have a significant rote in internal control or that could have a material effect on the project financial statements.. * We have made available to you all books of account and supporting documentation relating to the project. * The project has complied with the conditions of all relevant legal agreements, including the Financing Agreeiment, the PiTlect Agreement, the Project Appraisal Document, the Minutes of Negotiations, aid the Borrower's Project Implementation Plan. Financial Advisor (NI) Chief Engineer (PMGSY) PWD a aipur PWD, Rajasthan, Jaipur Audit Observations 1. Irreaular expenditure Preferred for claim: is. !A639167 According to the project agreement and its RRSMP implementation, it is prescribed that amount deducted on account of Deposit V was not admissible for reimbursement. During the scrutinY of the records it was found that following divisions had included the amount of Deposit V in reimbursement claims. Sr. Name of divisions Period Objected Amount No. 1 XEN/PWD, Div-Bundi 2017-18 1158191 2 XEN/PWD, Div-Aera7-18 50000 3 ~~017-18500 3 XBN/PWD, D)iv-Khanpur 2017-18 321996 XEN/PWD,Div-Chabra 2017-18 60354 5 XEN/PWD, Div-Shahbad 2017-18 10986227 6 XEN/PWD, Div-IT Sawai Madhopur 2017-18 803001 7 XEN/PWD, Div-Itawa (Kota) 2017-18 3268686 8. XEN/PWD, Div-I Jaipur 2017-18 50000 9. XEN/PWD, Div- New Delhi 2017-18 16291 10. XEN/PWD, Div-Il Alwar 2017-18 11100 11. XEN/PWD, Div-I Alwar 2017-18 81085 12. XEN/PWD, Div-Behror (Alwar) 2017-18 112390. 13. XEN/PWD, Div-Malpura (Tonk) 2017-18 697750 14. XEN/PWD, Div-l Udaipur 2017-18 42970 15. XEN/PWD. Div-Nimbahera 2017-18 446860 16. XEN/PWD, Div-Amet 2017-18 6075 17 XEN/PWD, Div-Begun 2017-18 1526191 TOTAL 1,96,39,167 Hence the inclusion of expenditure for Rs. 19639167/- preferred for claim was irregular, and does not qualify for reimbursement. 2. Non production of vouchers for Rs. 13,50.,000/- It was observed during the scrutiny of RRSMP accounts of Division Kekri that vonchers of Rs.1350000/- were not made available to the audit by the division. There fore audit is not sure about the expenditure of Rs. 13,50,000. Hence the inclusion of expenditure of Rs. 13,50,000 /-preferred for C,W&oes not qualify for reimbursement till the time they are made available and audited. Dy. Accountant General / G.S.S.-1