Prakash Aditya & AssociatesChartered Accountants

169, Patliputra ColonyPatna - 800013

AUDIT REPORT

FINANCIAL YEAR-2018-19

Name of Project:-"Strengthening of Flood Modelling Capacity in

Water Resources Department, Government of Bihar"

SAWI Grant No.-TFOAl269

Project ID:-PI57111

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a6,P-atliputra Colony,Ph 612614Lw w 3Patna

- 0134.

, -Unqualified opinion on Project Financial Statements (including IFRs/ FMRs) forut~ "Strengthening of Flood Modelling Capacity in Water Resources Department,r Government of Bihar" project at the Water Resources Department, Government of BiharUnder the World Bank administered South Asia Water Initiative (SAWI) Trust Fund withWater and Land Management Institute (WALMI), Patna as the Implementing Agency(SAWI Grant No.TF0A1269, Project ID-P157111)

To ,t Dated: 26th October'18I. The Joint Director,

FMISC, WRD, Bihar,Anisabad, Patna

2. The Director (Chief Engineer),WALMI,Phulwarisharif, Patna

Subject: Audit Report of Expenses under "Strengthening of Flood Modelling Capacity inWater Resources Department, Government of Bihar" Project(SAWI Grant No.TF0A1269 & Project ID - P157111)

Ref: FMISC letter no. 35/2016-936 dated 24-10-2018

Dear Sir,

We have audited the accompanying Project Financial Statements for SAWI GrantNo.TFOA1269 Bihar (under the SAWI-Bank Trust Fund for India) for the period 1st April 2018to 23 d October 2018. Our responsibility is to express an opinion on these financial statementsbased on our audit.

ScopeWe conducted our audit in accordance with National Standards on Auditing as prescribed by theInstitute of Chartered Accountants of India. Those Standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statemecnts. An audit also includes assessing theaccounting principles used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation, We believe that our audit provides a reasonablebasis for our opinion.

OpinionIn our opinion, the Project Financial Statements give a true and fair view of the Sources andApplication of Funds and the financial position of SAWI Grant No.TFOA 1269 Bihar (under theSAWI- Bank Trust Fund for India) for the period I" April 2018 to 23 rd October 2018, inaccordance with National Accounting Standards as prescribed by ICAI. In addition,

a) With respect to IUFRs/ FMRs, adequate supporting documentation has been maintainedto support claims to the World Bank for reimbursements of expenditures incurred;

b) Such expenditures are eligible for financing under the grant agreement. The amount ofexpenditure claimed in the IUFRs/ FMRs (submitted for the eligible expenses incurredduring the financial year under audit) has been reconciled with the audited expenditurefor the financial year and the same has been found in order.

c) The Project Financial Statements are free of material misstatements, includingomissions;

d) The Project Balance Sheet and other related financial reports have been prepared on thebasis of funds drawn by WALMI, Patna from its PL Account (Administrator Code PLA-282, Secretariat Treasury, Sinchai Bhawan, Patna). The total funds received in the PLAccount during the period Is April 2018 to 2 3 rd October 2018 from Govt. of Bihar wasNIL, During the period 1' April 2018 to 23rd October 2018 INR 17,204,391 (IndianRupees Seventeen million, two hundred and four thousand, three hundred and ninety oneonly) was drawn by WALMI, Patna from the PL Account.

e) Assets shown on the project balance sheet exist, are owned by FMISC, WRD, Patna andare used solely for project purposes;

0 Project funds have been used for the purposes for which they were provided;

g) There have been no irregularities involving management or employees which have asignificant impact on the internal controls or that could have a material effect on theproject financial statements;

h) The project has complied with the conditions of the Grant Agreement.

For Prakash Aditya & AssociatesCh rtered Accountants

(Prakash Aditya)PartnerFirm Regn. No: 003063CMembership No: 080584

Encl:I. Balance Sheet as at 2 3rd October 20182. Income & Expenditure Account for the period 1 April 2018 to 2 3rd October 2018.3. Receipt & Payment Account for the period I"t April 2018 to 2 3rd October 2018.4. Source and Application of Funds for the period Is' April 2018 to 2 3rd October 2018.5. Comparison between Actuals and Quarterly IUFR figures for the year 2018-19

Name of the Project- Strengthening Flood Modeling Capacity in Water Resources

Department, Government of Bihar

(SAWI Trust Fund Grant No. TF0A1269)

Source & Application of Funds (April'18 to 23rd October'18)Source: INR

Opening Balance in Savings Account with HDFC Bank 33,754.00

Grant received from GOB 1,72,04,391.00

Interest from bank 18,270.00

Total 1,72,66,415.00

FApplication: INR

Funds utilized:Consultancy Services 1,41,90,045.89

Capacity Building Training and outreach 29,96,321.00

Incremental operating cost (IOC) 25,240.00Less: Payable as on 23rd October 2018 5,900.00 19,340.00

1,72,05,706.89Less GST Deducted at Source - Payable 21,63,103.00 1,50,42,603.89

Balance in Savings Account with HDFC Bank 22,13,811.11

Total 1,72,56,415.00

For Prakash Aditya & AssociatesChartered Accountants

Place: Patna

Date: 26th October 2018Frakash AdityaPartnerFirm Regn. No: 003063C

Membership No: 080584

Name of the Project- Strengthening Flood Modeling Capacity in Water Resources Department,

Government of Bihar

(SAWI Trust Fund Grant No. TF0A1269)

Receipt & Payment Account for the period April18 to 23rd October'18

Receipt: INR

Opening Balance in Savings Account with HDFC Bank 33,754.00Grant Received from GOB for SAWI Fund 1,72,04,391.00HDFC Bank interest 18,270.00

1,72,56,415.00

TotalPayment:INR

Activity 2: Improve and upgrade flood forecast model2.2 Consultancy services to develop, implement and

operationalize flood forecast model and inundation 1,41,90,045.89mapping tool in Bagmati-Adhwara basin using public

domain and licence-free software.Activity 4: Capacity Building, Training and Outreach

4.5 Exposure visits to Centres of Excellence 29,96,321.00

Incremental operating cost (lOC) 25,240.00Less: Payable as at 23rd October 2018 5900.00 1934000

1,72,05,706.89

Less: GST Deducted at Source - Payable 21,63,103.00 1,50,42,603.89

Closing Balance in Savings Account with HDFC Bank 22,13,811.11

Total 1,72,56,415.00

For Prakash Aditya & Associatesrtered Accountants

Place: Patna

Date: 26th October 2018Prakash AdityaPartnerFirm Regn. No: 003063C

Membership No: 080584

kAfI

Name of the Project- Strengthening Flood Modeling Capacity in Water Resources Department,Government of Bihar

(SAWI Trust Fund Grant No. TF0A1269)

Income & Expenditure Account for the period April'18 to 23rd October'18

[In come: INR

Grant received from Government of Bihar 1,72,04,391.00HDFC Bank interest 18,270.00

TOTAL 1,72,22,661.00

Expenditure: INR

2.2 Consultancy services to develop, implement and operationalize

flood forecast model and inundation mapping tool in Bagmati-Adhwara

basin using public domain and licence-free software. 1,41,90,045.89

4.5 Exposure visits to Centres of Excellence 29,96,321.00Incremental operating cost (IOC) 25,240.00

Excess of Income over Expenditure 11,054.11

TOTAL 1,72,22,661.00

For Prakash Aditya & AssociatesChartered Accountants

Place: PatnaDate: 26th October 2018

-kas'h AdityaPartnerFirm Regn. No: 003063CMembership No: 080584

F~sCt )J~Cf u~D.DaFsta' - Dfice

Name of the Project- Strengthening Flood Modeling Capacity in

Water Resources Department, Government of Bihar

(SAWl Trust Fund Grant No. TFOA1269)

Balance Sheet as at 23rd October 2018

Grant from GOBBalance as per last account 33,754.00

Add Excess of Income over expenditure as per Income & Expenditure Account 11,054.11 44,808.11

GST Deducted at Source - Payable 21,63,103.00

Incremental operating cost payable 5,900.00

22,13,811.11

Assets INR

Balance in Savings Account with HDFC Bank 22,13,811.11

22,13,811.11

For Prakash Aditya & Associateshartered Accountants

Place: Patna

Date: 26th October 2018Prakash AdityaPartnerFirm Regn. No: 003063CMembership No: 080584

0/7

DAQ*.Estat~er

Name of the Project- Strengthening Flood Modeling Capacity inWater Resources Department, Government of Bihar

(SAWI Trust Fund Grant No. TF0A1269)BakReconciliation Statement for HDFC Bank Ltd, Walmi, Patna

Savings Account No. 50100175758946 as at 23rd October 2018

Balance as per Bank Book (23-Oct-2018) 22,13,811.11

Add: Cheques issued but not presented for payment.

Cheque No. Date Amount (in Rs.)

000026 12-Oct- 18 3,540.00000027 12-Oct- 18 5,900.00000028 12-Oct- 18 4,000,00 13,440.00

Balance as per Bank Pass Book (23rd October 2018) 22,27,251,11

For Prakash Aditya & AssociatesCha tered Accountants

Place: Patna'

Date: 26th October 2018 ;rakash Aditya)Partner

Firm Regn. No: 003063CMembership No: 080584

Name of the Project- Strengthening Flood Modeling Capacity in Water Resources Department, Government of Bihar(SAWI Trust Fund Grant No. TFOA1269)

Allfigures in INR

Comparison between Actuals and Quarterly IFR figures for the Quarter ended on30th June 2018

Particulars Actual As per IFR Variance RemarksActivity i: Operationalization and use of ensemble rainfallforecasts and near--real time rainfallestimates1.1 Procure consultancy to develop meteorological framework and customized tools fordownloading, down- and upscaling. calibration and packaging of ensemble weather forecastsand rainfall estimates for flood model, and evlauate ensemble forecasts and estimates, and trainFMISC staffActivity 2: Improve and upgrade flood forecast model2.1 Consultancy services for consolidating and upgrading existing flood model2.2 Consultancy services to develop, implement and operationalize flood forecast model andinundation mapping tool in Bagmati-Adhwara basin using public domain and licence-free 77,31,089.49 77,31,104.00 14.51 Error on AUD conversionsoftware.2.3 Consultancy services to collect stage and discharge data at seLected sites downstream oflaaghat during 2016 monsoon seasonActivity 3. Community based flood risk management3.1 Consultancy services for formulating community outreach mcchanisn,raising awarenessand mobilization for use of flood alerts, and develop draft agreement (with cost estimates) withmobile service providers for SMS alerts3.2 Provide SMS alertsActivity 4: Capacity Building, Training and Otireach

4.1 Conduct Launch Workshop on flood modeling issues. approaches, outputs and outcomes

4.2 Conduct training in select topics to FMISC/WRD staff4.3 Create Dasboard for flood data dissemination for effective flood management and conductInstitutional Support workshops in WRD offices in Samastipur and Muzzafarpur4.4 Concluding workshop on project outputs and outcomes4.5 Exposure visits to Centres of ExcellenceIncremental operating cost (1OC)

77,31,089.49 77,31,104.00 14.51

For Prakash Aditya & Associatesered Accountants

Place: Patna

Date: 26th October 2018

Prakash AdityaPartnerFirm Regn. No: 003063CMembership No: 080584

Name of the Project- Strengthening Flood Modeling Capacity in Water Resources Department, Government of Bihar(SAWI Trust Fund Grant No. TFOA1269)

All figwes im iNR

Comparison between Actuals and IFR figures for the period from 01st July 2018 to 23rd October 2018Particulars Actual As per IFR Variance Remarks

Activity 1: Operationalization and use of ensemble rainfall forecasts and near--real time rainfallestimates1.1 Procure consultancy to develop meteorological framework and customized tools fordownloading, down- and upscaling, calibration and packaging of ensemble weather forecastsand rainfall estimates for flood model, and evlauate ensemble forecasts and estimates, andtrain FMISC staffActivity 2: Improve and upgrade flood forecast model2.1 Consultancy services for consolidating and upgrading existing flood model2.2 Consultancy services to develop, implement and operationalize flood forecast model andinundation mapping tool in Bagmati-Adhwara basin using public domain and licence-freesoftware. 64,58,956.40 64,58,956.00 (0,40) Rounding off error2.3 Consultancv services to collect stage and discharge data at selected sites downstream ofIlavahat during 2016 monsoon seasonActivity 3. Community based flood risk management3.1 Consultancy services for formulating community outreach mechanism.raising awarenessand mobilization for use of flood alerts. and develop draft agreement (with cost estimates) withmobile service providers for SMS alerts3.2 Provide SMS alertsActivity 4: Capacity Building, Training and Otreach4.1 Conduct Launch Workshop on flood modeling issues, approaches, outputs and outcomes4.2 Conduct training in select topics to FMISC/WRD staff4.3 Create Dasboard for flood data dissemination for effective flood management and conductInstitutional Support workshops in WRD offices in Samastipur and Muzzafarpur4.4 Concluding workshop on project outputs and outcomes4.5 Exposure visits to Centres of Excellence 29,96,321.00 29,96,321.00 No variance foundIncremental operating cost (IOC) 25,240.00 25,240.00 No variance found

94,80,517.40 94,80,517.00 (0.40)

For Prakash Aditya & AssociatesChartered Accountants

Place: PatnaDate: 26th October 2018

Prakash AdityaPartnerFirm Regn. No: 0 003063CMembership No: 80584

Name of the Project- Strengthening Flood Modeling Capacity in Water Resources Department, Government of Bihar

(SAWI Trust Fund Grant No. TF0A1269, Proect 1D:- P1571'1

Comparison between Actuals and IFR figures for the project

Financial Year 2016-17 Financial Year 2017-18 Financial Year 2018-19 Cummulative Expenditure till 23-10-2018

Particulars > >

ctty 1: peatinlzation and use of ensemablranll-forecasts and new--real time roinfall estimates

1 [ Promure consultancy to develop meteorological framework

and customized tools for downloading. down- and upscaling,

calibration and packaging of ensemble weather forecasts and

rainfall estimates for flood model, and evia ensemble

forecasts and estimates, and train FMISC staff

Activity2; improve and pgradeflood forecast model

2.1 Consultancy services for consolidating and upgrading

existing flood model

2,2 Consultancy services to develop, implement and

operationalize flood forecast model and inundation

mapping too in Bagmati-Adhwara basin using public

domain and licence-free softsware.

2.3 Consultancy services to collect stage and disciharge data

at selected sites downstream of Ulayaghat during 2016 82,27,100.00 8227,100.00 3525.90000 35,25,900.00

monsoon season

---_--

Activity3, Community basedflood risk management

311 Consultancy services for formulating community outreach

techanism,raising awareness and mobilization for use of

flood alerts, and develop draft agreement (with cost estimates)

with mobile service providers for SMS alets

3 2 Provide SMS aletis

Activity 4: Capacity Ililding, Training and Ourreach_---

4 1 Conduct Launch Workshop on flood modeling issues

aproaches, outputs and outcomes

4 2 Conduct training in select topics to FMISC/WRD sf ----_-----

43 Create Dasboard for flood data dissemination for effective

flood management and conduct Institutional Support

workshops in WRD offices in Samastipur and Muzzafarpur---

4.4 Concluding workshop on project outputs and outcomes

4.5 Exposure visits to Centres of Excellence 1542609 1542609 2996321 2996321 45,38,930.00 45,38,930.00

Incremental operating cost (10C) 385 3850 25240 25240 29,09000 29,090.00

__7 69,709.00 9769,709.001) 5,29,750-00 35,29,750.00 - 1,72,11,6306.89 1,72,11,621 00 14111 3,05,11,065.9 3,05,11,080.00 14.11

For Prakash Aditya & Associates

Place: Patna ,, er Accountts

Date: 26th October 2018Prakash AdityaPartnerFirm Regn. No: 003063CMembership No: 080584