AUDITOR'S REPORT Audit completion date: 13.12.2018 Senior Secretary, Local Govt. Division, Ministry of LGRD & Co-operatives, Bangladesh Secretariat, Dhaka. I.We have audited the accompanying Financial Statement of the "Local Governance Support Project -3" financed by IDA under Financing Agreement No. 5946-BD as on 30"' June, 2018 and for the year then ended. The preparation of Financial Statement is the responsibility of the management. Our responsibility is to express an opinion on the Financial Statement based on our audit. II. We conducted our audit following International Standards of 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. III. In our opinion, except 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 "Local Governance Support Project -3" as at 30th June, 2018 and the results of its operations and cash flows for the year then ended in accordance with the cash basis of accounting followed by the Government of Bangladesh, IV. Opinion: Unqualified. (Sarkar Mohammad Khairul Alam) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 88-02-8391548 [Ref Project Audit Manual, FAPAD. Page 4.7.1] 5 슨 l l l l l l - [ .．· : , 鬱 .‘ㅍ，& 珊 L0CAL G0YER-NANCE SUPP.ORT PROJECT-3 (LGSP-3) NOTES TO THE F1iNANCIAL-STATEMENT 30 tb June, 2018 2- j..GOVELýNýE NT OP BANGLADESH. k", Funds are allócated by the'Government of Bangladesh to cóver-GOB's share of of eligible projectexpendiffire, as specified in the DeMopment,Prdject Profbrina*and in the Annual Developffiént Programme for euh of the project, Any 4ocated funds that have. not, epR expen ed by the end of a fiscal* year lapse and must be returned. to GOB, GOB contribution to the project sincé inceptýdware''s f6llow's (In Lakh Ifiception to. For the.year luception to June, 2017 30'l' June, 2018 30 hýJune,.2018 Disburse.ffipts,,by:Ø013 41,920..00 45,542,00 87,462.00 Less R&nds to GO't 78,43 78.43 Total 41,84.1.57 -45,542,00 87,383,57 2 LOAN FROM DEV ELOPM ENT PARTNER The World Banl( has provided funds tothe project to cover its share of éliýible project expenditure. These funds, which must bc.rýpaid to.theVorid bank after conclusion oýthc*project, have beeri drawh by tWe project in accordance with th' withdrawal procedures (In Lakh Taka). Inceptjøn to the-year- Inception to 3 0"' Ju n e, 2017. 30ýý June, 2018 30'h June, 2018 RPA (Repóri Base) BBG, PB 0 åndýEBG (DOSA) 5.4,232,19 57,136.54 111,368.73 Other Aetivities (CóNTASA) 41'000,00'ý.,, 7,950.00 11,950,00 Total 58,23ý - o 123,318.73 ý5 86.54 3 01-1 R RESOURdS. Other resources c-onsists of the followin Inception to For the year kaccýtion to 301h J u ne, 2017 30'h June, 2018 30'h June, 2018 001-8 Project Revenues Excharige Gains Losses) Total: P F S -Y 2 0 17 - 8 1 ý3 *x. Auditor's Report on Special Account (DOSA for fiscal transfer) We have audited the Special Account Statements of "Local Governance Support Project -3" for the year ended 30th June, 2017 under the provision of IDA Financing Agreement No, 5946-BD dated 6th March, 2017. * Our audit was carried out following International Auditing Guidelines. Accordingly our audit included such review of systems of internal control, tests of accounting records and supporting documentation, verification of accounts balances and other auditing procedures that we considered necessary under the circumstances. The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above financing Agreement. * In our opinion, reimbursements made by IDA are properly accounted for and withdrawals were made for the purpose of the project in accordance with the Financing Agreement. A C- (Sarkar Mohamm d Khairul Alam) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 88-02-8391548 7 å -" SPECIAL.AfkCXIN orx theyea ndx 30th June, 2018 c'ount N DOSA Local Goveruance up ort Project-3 (LGSP3) IDA Credit no. 5946-BU) De oitriyBank Bang ladesh ank Address MotijheesD-1aka R-o tedmnemg .Agreernent No. 5946-BD RT A ACOUT A&CTIV Tf . 76319, 000.0oo . amc] m depos ted 'by the IDA. b&650000 i 3 0 oal intere earin*gs.r deposited in account T no ur refunded tco1v!er ineligible 'xen tc mt ount WitMdsyii .34,158,119,66 11;023 450 0o 00 otaI srvice charges if not included above in amount wItfidrawn 'n: uun balance a 7n.30,6,2018 142 880,34 113 4231 C8 AcCOunt Actvtv, & ‘·；-&*&&&!&：【’&’ㅏ‘:&--’ㅏㅏ…―Lllll&-1111111!l-&&1111―겨―-*l-I-!11&l-Ies&l--*& fl Local Ow=ance SýiPport Projeet-3 (LOSP-3) Local Government Division Bank -Reconciliatibn Statement DA-A: DOSA IDA Credit No. 5946.- BI) åýsonJune10,-2018 USD Balance as per Bank Statement as oh June 30,2018 1,4ý5,880.34.- Q 2ý gp Less Add: ýM B2lanée as per Cash Book as on 2018, ?rdÉir 'a fa Ali ar ýf Proje t Dir tor S ar c PPý Local Governance pport Project-3 ø] f . . . . . . . . . . A' Auditor's Report on Special Account (CONTASA for all the activities other than fiscal transfers) We have audited the Special Account Statements of "Local Governance Support Project -3" for the year ended 30'h June, 2018 under the provision of IDA Financing Agreement No. 5946-BD dated 6th March, 2017. * Our audit was carried out following International Auditing Guidelines. Accordingly our audit included such review of systems of internal control, tests of accounting records and supporting documentation, verification of accounts balances and other auditing procedures that we considered necessary under the circumstances. * The accompanying Special Account Statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the above Financing Agreement. * In our opinion, reimbursements made by IDA are properly accounted for and withdrawals were made for the purpose of the project in accordance with the Financing Agreement. (Sarkar Moham ad Khairul Alam) Deputy Director For Director General Foreign Aided Projects Audit Directorate Phone: 88-02-8391548 8