AUDITOR'S REPORT

Secretary Implementation, Monitoring and Evaluation Division (IMED) Ministry of Planning Sher-E-Bangia Nagar, Dhaka.

I. We have audited the accompanying Financial Statement of "Public Procurement Reform

Project-11(2"d revised) "fmanced by IDA credit no. 4350-BD & 5242-BD of 30 June, 2014 and

for the year then ended. The preparation of the Financial Statement is the responsibility of

management. Our responsibility is to express an opinion on the Financial Statement based on

our audit.

II. We conducted our audit in accordance with International Standards on Auditing. Those

standards require that we plan & perform our audit to obtain reasonable assurance about whether

the Financial Statement is free from material misstatement. An audit includes examining on a

test basis, evidences supporting the amounts and disclosures in the Financial Statement. An audit

also includes assessing the accounting principles used & 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, the Financial Statement gives a fair view in all material aspects, except non­

compliance of financial rules and regulations in subsequent observations stated along with the

management letter fo llowing of the financial position of "Public Procurement Reform Project-11 (2"d

Revised)" as at 30 June 2014 and the results of its operations and cash flows for the year then

ended in accordance with cash basis of accounting followed by the Government ?f Bangladesh.

IV Opinion status:- Unqualified.

G:\ 1405-PPRP-11,2013-2014.doc

1J l• t-t-" L4 (Md. Mamun- Ul- Mannan) }

Deputy Director For Director General

Foreign-Aided project Audit Directorate Tel:9331027

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Public Procurement Reform Project-11(2nd revised) Project Financial Statement

30th June, 2014

If ure m a a a (F" . l kh ~ k )

- Cumulative Current Cumulative

- . ~ .... -·- ... Resources Notes Prior Period current Period

Period Government of Bangladesh 1 120.70 - 120.70 Loan from DeveloQ_ment Partner(IDA) .... 17.,056.49 6,270.22 23,326.71 L.

Other resources. ~ 3 - ~ - -Cash Opening Balance 4 - 7.69 . -

._1 Tota/~es.IJ!Irces . . .. . .. - 17,177.19 6,277.91 ~3,447.41 . - .. -

' Expenditure and Cash 1. Further policy Reform and Institutionalizing Capacity developmement 7,034.67 2,307.45 9,342.12 2 . Strengthening procurement management at sectoral level and CPTU/I MED 3,378.29 231 .18 3,609.47 3 .1ntroducing e-GP Procurement (e-GP) 5,876.90 2,764.69 8,641 .59 4 . Behavioural Change communication and So-cial Accountcib.ility- (BCG& SAC) .. 879.64 17.16 ·896.80 Total .Exp.enditures 17,169.50 5,32.0.48 :. 22,.489.98 .

. . . . ~- - -· -·· - -- - . .. . -~-

Cash~Ciosin!I_ Balance lmprest Account - - -Operating Account (RPA) 7.69 957.43 957.43 OperatingAccount (GOB) - - -Total Expenditures and Cash 17,177.19 6,277.91 23,447.41

D:\FMC-Aif\AUD/7l.Audit-13-14(PPRP-II) \FS (2012-2013 ).xis

- ,.... .. .. . .. - - ··· - ·-· · ··-'".7" 7

NOTES TO FINANCIAL STATEMENT

30th June, 2014

1. GOVERNMENT OF BANGLADESH Fund are allocated by the Government of Bangladesh to cover GOB's share of eligible project expenditures, as specified in the Project Proforma and in the Annual Development Programme for each of the project. Any allocated funds that have not been expended by the end of a fiscal year lapse and must be returned to GOB . GOB contribution to the project since inception are as follows (In Lakh Taka).

Inception to For the Year Inception to 3oth June 2013 2013-2014

I 30th June 2014

Allocated by GOB 185.00 - 185.00 Less: Un-utilized by Project 64.30 - 64.30 Total: Actual expenditure 120.70 - 120.70

2. LOAN FROM DEVELOPMENT PARTNER The IDA has provided funds to the project to cover it's share of eligible project expenditures These

..;;..,,_,,,. __ ,..,;., ::AuwJs~a:;h·mt1'Si :iJ..,•rep:aitj·.to,· lDA;after:. i:he ,eor>roi~lon "'f·=the' project·:n-aveot:Jeetlf•drawr.i:'f:>y<'ttie~p·roj~!t:.> '" '"7"~'1 :··-.:::.' t"".,;"';> ,.....::

in accordance with the following withdrawal procedures (In Lakh Taka)

. 1::.: •. :...:·--·

Inception to 30th June 2013

Initial Deposit (Advance) 1,019.63 DPA (Direct Payment) -RPA (Direct Payment& Non SoE) 3,659.49 RPA (SOE Procedure) 728.74 RPA (Non SOE; Procedure) 1.1 ,648.63 Others

: 1 T~t-~!: · -- : ':· .. ~:::::.-::. : -~ . -. . -~- - ~ :=. '-~i; . 47,05.6.49 .

.3. OTHERRESOUP.CES ,_- ., ~ot Applicable Other resour.ces consist of the following:

lncepti:on to 30th June 2013

Project Revenues -Exchange gains/ losses -Total:

..

For the Year Inception to 2013-2014 30th June 2014

4,000.00 5,019.63 - -

235.54 3,895.03 130.87 859.61

1,903.81 13,552.44 -

. - ' '·' L 6,2•7-0..22 .. . ... ' "· 23;326.7.1 --. . . ~- -

. .. ..-·. : .. : .......... ·; ..... · ':~ --·~~ :a._,. -·--. ~-'-~ --.. - -

For the Year Inception to 2013-2014 30th June 2014 ·

- -- -

-!: . .

The project maintains three bank account, a CONTASA bank account(# 36000691 & 36001129) which is ~ept at Janata Bank Ltd. to hold funds advanced by IDA, and an operating account ( # 3300486~) . which is kept at Janata Bank Ltd to hold funds by GOB.Year end cash balances were as

Inception to For the Year Inception to 30th June 2013 2013-2014 30th June 2014

lmprest Account - - -Opera~ing Account (RPA) 7.69 957.43 957.43 Operating Account (GOB) - - -Total: 7.69 957.43 957.43

. . . .. .·.. ~-.

•-. ;o¥ -.~ - · · ~ ' -.-.:..:: • . ; ;. _,,. _ . ~-

AUDIT OPINION ON SOE

We have audited the statement of expenditure (SOE) of the Public Procurement Reform

Project -II (2nd Revised) for the year ended 30th June, 2014. Submitted to IDA for

reimbursement of expenditure in accordance with the IDA credit agreement dated 26 July 2007.

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

included such tests of the accounting records and supporting documents, review of system of

internal control. Adopting necessary auditing procedures is essential under the circumstances.

Withdrawals/SOE particulars:

The particulars of withdrawal on the basis of SOE are shown in enclosed statement. We

have verified the SOE and withdrawal applications.

It was seen from SOE application no.058 dt-16-02-2014 that an amount of Tk.3,01,28,550.04

was claimed to IDA. But the same was not reimbursed by the IDA during the year

Opinion:

In our opinion, except preceding paragraph the SOE can be relied upon to support the

applications for credit disbursement by the World Bank for expenditure incurred for the purpose

of projects.

G:\ 1405-PPRP-ll,2013-2014.doc

1,,.,~ !1-f (Md. Mamun- Ul- Mannan) /

Deputy Director For Director General

Foreign-Aided project Audit Directorate Tel:9331 027

14

I SUMMARY OF EXPENDITURE RPA (DIRECT PAYMENT,SOE&NON SOE PROCEDURES OF CONTASA ACCOUNT)

FISCAL YEAR: 2013-2014

PROJECT: PUBLIC PROCUREMENT REFORM PROJ ECT-11(2nd revised)

· .• Lender/Donor- :•IDA·. · .. ,,. " ·"' c.J.· "'" ·:...-·· ··'-"'<-.··· .. ~ · ,-,..- ... _,.,_, . .., ",,. •. ,_, •. , ,.,."' ...... . · ·· ~__,..,..., ' .. , :-v· · , .. ;"'" · LciariN:iranH<lb::' ·4"350~8D lr'5242 'BB·~ · .;u:.···. ;. .. ... !. ,..·H~ '.:.L r n .. . !' "

Withdrawal

I I I I I Category-03 I I Received I Amount SI/No. I Application Date DA Advance Category-1 Category-2 I Difference I Remarks No.

Amount Claimed Date Received

DA·AfiDACredit.No 4350BD

BOT 40,716,610.93 documentated and deducted BOT 28,101 ,550.04 due to noR

01 I WIA # 058 I 16-Feb-141 - I 70, 629,103. 971 216,057. 00 I -I 70,845,160.97 1 26-Feb-1 21 2,021,ooo.oo I 68,818,160.97 !attachment of supporting documents In WA The

• t . I " I I I I •deducted amount reclaimed In nextWA

I WIA # 057 ; I 2-Sep-14 1 1' 30, 504,2~8. 31 1 ' : 43~, 8:;_·0~ . :.; : .. : •• .. ··,

3~. 34;. 860. 00 1

. ' Deducted BDT:59t;199.3-1 due I ._.·.

to non attachment of supporting

02 30,939,059.31 21-Sep-12 591,199.31 documents in WA The

.. .. . i deducted amqvnt. rcclz!med In nextWA

· Sub Total DA-A I 1 t o1,133,332.28 l 650,888:00 101,784,220.28 32,3}4,860.001 69,409;360:28i DA,B(IDACreditcNo•5242 BD

I WIA#CP;j 9-Jun-141 I 86,627,753.961 541, 187.00 126,250,977.451 11 3,419,918.411 26-Jun-141 96.934.624.41 1

!Deducted BOT 16,485.294.00 due to non attachment of

03 - 16,485,294.00 supporting documents In WA AF005 The deducted amount

reclaimed In next WA

96,340,000.001 12-May-14 96,340,000.00 DA-B Advance

I ·- I ' I .. ... ~ ' BLJT74,t6e,t;&4 .06 '

9,940,003.06 documentated and disbursed as 7 4, 158,683.06 8-Apr-1 4 64, 218,680.00 per IUFR.

23,553,967 .00 17-Jan-13

23,553,967.00 - dTC-ILO UNC payment

313,600,000.00 I 3-0ct-141 313,600,000.00 • - DA-B Advance

Sub Total DA-B l 399;999,995.94 I 143,938,707.02 I 1,680,149.00 I 65,513,712.45 621 ,072,568'.47 I I 594,647,2.71.411 26A25.297.06

~

~ -:

Grand Total (DA"A+OA-B) I 399,999,995.94 I 24_5 ,072,039.30 I 2,331,037.00 I 65,513,712.45

,,9 c.----

722,856,788.75 1 1: 3.. j['S27,022, 131.41 1 95,834,657.34 . ~ J,·

1\ ~"h]~u~\~lam A ::,:;:· .. ~ A7.h<lra sl m hl dhury ··· .,.....rl'M'M6Yt~ad1 !t-'1'4~rft~(llfli\'tll iW!i'llrawal details (Final D2.09.2013).xlin'.lr.(:ia l :v1anagm e n t Consuaant

Jt rioancial Man119: CP.T\.1 . IMt D, · P;•:Jlic PrcwremGnt Reicrm Project· ll ppRP41 (2ndre~15 ~anglaoesh CP~U . :M::o. Ministry of Planning

Qq~11,nment ol uoverroment of 8angladeti11

-------------------·-- - - - - - -

:·: ... · J .'!:i::~~~H:~: ~ ~!~~~~:, ·:· ·······-· ;1: ;:. ';ll-.~~. ~l!i.!~\.. _ _._

I SUMMARY OF EXPENDITURE RPA (DIRECT PAYMENT ,SOE&NON SOE PROCEDURES OF CONTASA ACCOUNT)

FISCAL YEAR: 2013-2014

PROJECT: PUBLIC PROCUREMENT REFORM PROJECT -11(2nd revised)

l.ender/Donr:•r: IDA r . ' • · '.;: \ ••• -~1 ;., ; •• ,. ·l t; •J .~ .... !\",) .. -~ ..,-:-, ;~,., _~'l· ;,_;'\;:: ·~ . a

Sf/No. Withdrawal Application

No. Date DAAdvance Category-1 Category-2 Category-03

DA-A(IDA Credit No 4350BD

01 WIA #058 16-Feb-14 70,629,103.97 216,057.00

2-Sep-14 02 I WIA #057

, , • " ~ ~1 ; . . ..:~..: · · !

30,504,228.31 434, 831.00

I · · Sub 'Total VA-A 101,133,332.28 650,888:00

DA-B(JDA Credit No•5242 8DJ

03

04

05

06

07

WIA#CP;J AF005

WIA #CPTU AF004

WIA #CPTU AF003

WIA #CPTU AF002

WIA#CPTU AF001

9-Jun-14

29-Apr-141 96,340,000.00

24-Mar-14 (9,940,004.06)

20-Feb-13

23-Sep-131 313,600,000.00

86,627,753.96 541,187.00 26,250,977.45

33, 756,986.06 1,138,962.00 39,262,735.00

23,553,967.00

Sub Total DA-B I 399,999\995.941 143,938,707.02 1 1,680,149.00 I 65,513,712.45

Grand Totai.(DA-A+DA-8) I 399,999,995.94 I 24_5,0-72,039.30 I 2,331,037.00 I 65,513,712.45

,0_ .J·

'~ '"""' '"'""f.J '' m hldhu'Y ~ -~~YI~~~~tft~~\~rawal details (Final 02.09 . 2013~.xli;'l _;:~n_:;i;; l Managm _en_: Consui_tant Jr. FinanCial Mana9 eO) CP'TU, 1McD. f'; ::;:;c r'rccur::mr;nt Re!orm Project-If ppRP-11 (2nd rev's

1 eaogtaoesh t-PTU, !Mf:u. Mini~ try of Planrung

~ .... n.nmanl o Goverr:ment nf tlanuladesh

. . ;~ ~ ·. .. , •. · r -"~ -~ LoanfGranfNo·.:4350-8D 8;'5242 'aD ·'"''' ~ ··· -

Amount Claimed Received

Date Amount

Received Difference Remarks

BDT 40,716,610.93 documentated and deducted BDT 28,101,550.04 due to noR

70,845,160.971 26-Feb-12 2,027,000.00 I 68,818,160.97 la«achment of supporting documents in WA The deducted amount reclaimed in nextWA

30,939,059.31 21-Sep-12 30,347,860.00

101.784.220.28 32,3,7 4,860.00

113,419,918.41 26-Jun-14 96,934, 624.41

96,340,000.00 I 12-May-14 96,340,000.00

7 4,158,683.06 8-Apr-14 64,218,680.00

23,553,967.00 17-Jan-13

23, 553,967.00

313,600,000.00 3-0ct-14 313,600,000.00

621 ,072,568,47 594,647.271.41 722,856,788.75 I ~ "- 627,022,131.41

n \.f "~"-~ ~ v~ 1-\,..s ,--~ss~ o t\\c.e' 10, a,e

7...\ sr\P..f>.~C.ol.l fi\S o\1 l)il tC. \o<l~~l\ \Zi"' u<l\1 & . . nr.l P.,ll . a\ l)a(\'l

p.. ·Ae<l 1' 10 1 ne~IJIJ\iC. qoo ' ) "''" \e' s " v ('In r r nl~l\l~ \tie ?cOl> 0\l\e'~- \) on<'>¥.3

r.~-.:1 0 ... ,, c o( _·,rn<l'

! .

591,199.31

69.409;360.'28

Ded!Jcted BOT591 ;199:31.11ue-· to non altachmenl of supporting documents In WA The d~ducted al'(lount raclalmed.ln .... nextWA

Deducted BOT 16,485,294 .00 due to non attachment of

16,485,294.00 I supporting documents in WA The deducted amount reclaimed In next WA

DA·B Advance

llDT 74, lti~: oH4 .06 9,940,003.06 ldocumentated and disbursed as

per IUFR.

• dTC-ILO UNC payment

DA·B Advance

26,425,297.06 95,834,657.34

.i ,:.,. J":, .""t?-P : .t O!~-:

AUDITOR'S REPORT ON SPECIAL ACCOUNT(CONTASA)

1. We have audited the special account (CONTASA) statement of "P1,1blic Procurement

Reform Project-II(2nd revised) " for the year ended 30th June, 2014 under provision of IDA

credit No. 4350 -BD & 5242-BD .

2. Special Account Statement shown in the enclosed statement(Annexure-"D").

3. Our audit was carried out in accordance with International Auditing Guidelines and

relevant national standards. Accordingly our audit included such review of systems of internal

control, test of the accounting records and supporting documents, verification of account balance

and other auditing procedures that we considered necessary under the circumstances.

4. In our opinion the receipts were properly accounted for withdrawals were made for the

purpose of the project. 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 on 30th June, 2014 on

the basis of cash deposits and withdrawals.

Opinion Status: Unqualified.

G:\1 405-PPRP-11 ,2013-2014.doc

} r;;,. 'v ~ (Md. Mamun- Ul- Mannan)

Deputy Director For Director General

Foreign-Aided project Audit Directorate Tel:9331027

15

SPECIAL ACCOUNTS STATEMENT

June 30' 2014 STD-36000691

For the Year Ending Account No. Depository Bank Address

Janata Bank, Sher-e-Bangia Nagar Br. Block# 13, Ground floor, Sher-e- Bangia Nagar, Dhaka-1207, Bangladesh

Related loan/credit agreement No. 4350-BD

Currency Part-A-Account Activity

Beginning balance (July 01, 2013)

.. Add: Total amount deposited by World Bank

Total inte;ast eaming:; :f ce:pcsited in account

Total amount refunded to cover ineligible expenditures

Deduct:

Total amount withdrawn

Total service charges if not included above in amount withdrawn

Ending Balance (June 30, 2014)

Part-S-Account Reconciliation.

1.

2.

3.

Amount advanced by World Bank

Less total amount recovered by World Bank

Equals present outstanding amount advanced to the Special Account at fiscal year end 30 June 2014(mm/dd/yy)

4. Ending balance of Special Account at fiscal year end (June 30, 2014)

5. Plus amounts claimed and not yet credited at fiscal year

6 .

end (June 30, 20~4) Application No.

' . J1us amounts withdrawn and not yet claimed (June 30, 2014)

7. Less interest earning (if included in Special Account)

8. Plus service charges (if not included in lines 5 and 6 above)

9. Equals total advance to Special Account accounted for at fiscal year end 30 June 20134

I J.•J'l,' I y KAZI SH AM EEM HASAN

Au dit & Accounts Otftcer . p ·ect Aud it Directorate

;: o;e t:.J . Atded r?J 1. 1 Ba ngl :~de sh :: ·. v\ 8 \M Peoples Re pub tc 0 " ) cJcptu~g~ciDot~~ lii.~W)~gJ;ot-•1

S..:aun Bagtch a. a ·

Taka

769,485.38

~ 32,374,860.00 33,144,345.38

33,144,345.38

101,962,506.35

38,689,610.93

63,272,895.42

63,272,895.42

63,272,895.42

I

Page# 1 of 1

SPECIAL ACCOUNTS STATEMENT

June 30' 2014 STD-36001129

For the Year Ending ·Account No. Depository Bank Address

Janata Bank, Sher-e-Bangia Nagar Br. Block# 13, Ground floor, Sher-e- Bangia Nagar, Dhaka-1207, Bangladesh

Related loan/credi' agreement No. 5242-BD

Currency Part-A-Account Activity

Beginning balance (July 01, 201 3)

.. Add: Total amount deposited by World Bank

Total amount refunded to cover ineligible expenditures

Deduct :

Total amount withdrawn

Total service charges if not included above in amount withdrawn

Ending Balance (June 30, 2014)

Part-S-Account Reconciliation •

i. · Amour1t ~dilanced by W orld Bank

2. Less total amount recovered by World Bank

3. Equals present outstanding amount advanced to the Special Account at fiscal year end 30 June 2013(mm/dd/yy)

4. Ending balance of Special Account at fiscal year end (June 30, 2014)

5. Plus amounts claimed and not yet credited at fiscal year end {JuilC :,a, 401.;j

Application No .

. 6. . ~Ius amounts withdrawn and not yet claimed (June 30, 201 4)

7. Less interest earning (if included in Special Account)

8. Plus service charges (if not included in lines 5 and 6 above)

9. Equals total advance to Special Account accounted for at fiscal year end 30 June 2014

Taka

~ 571,093,304.41 571,093,304.41

475,350,1 01 .76

95,7 43,202.65

.571,093,304:41 .

187' 578,6()2.47

383,514,701.94

95,743,202.65

287 '771 ,499.29

383,51 4,701 .94

C:/cptu29012/cptu/Finance Manager/Audlot-s1

KAZI SHAMEEM HASAN Audit !. Accou rs Officer

Fcre,gn Aic!ed Project Audit Directorate G <t of the Peo le's R! r ublic of Banj ladest­

Aud C mplex ( - ih Flo r, "~~n Sag ict- a . o, 11 a.

I