AUDITOR'S REPORT

Audit Completion Date: 18-12-20 14.

The SecretaryMinistry of FinanceFinance DivisionBangladesh Secretariat. Dhaka.

I. We have audited the accompanying financial statement of the "Deepening MTBF and

strengthening Financial Accountability Project" financed under DFID, EC, EKN, CIDA, RDA,

others (specify) grant no. TF-095283-BD as of 30 June, 2014 and for the year then ended. The

preparation of financial statement is the responsibility of Management. Our responsibility is to express an

opinion on the financial statement based on our audit.

II. We have conducted our audit in accordance with International Standards on 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 the Management, as well as

evaluating the overall financial statement presentation. We believe that our audit provides a reasonable

basis for our opinion.

Ill. In our opinion, the Financial Statement gives a fair view, in all material aspects, the financial

position of " Deepening MTBF and strengthening Financial Accountability Project " as of 30'h

June, 2014, and the results of its operations and its cash flows for the year then ended in accordance with

the cash basis of accounting followed by the Government of Bangladesh.

IV. Opinion Status: Unqualified.

Date :Y6

(Mst. Maksdda kegum)Deputy Director

For Director GeneralForeign-Aided Projects Audit Directorate.

Phone: 9361947

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Deepening MTBF and StrengtheningFinancial Accountability Project

Project Financial Statement3 0 th June, 2014

Figure in Lakh Taka

Resources Notes Cumulative Current Cumulativeprior period Period Current Period

up to June 2013 2013-14 up to June 2014Government of Bangladesh

465.64 198.24 663.88(GOB)

RPA Advance to DA 13506.00 2682.70 16188.70

DP Sc 15359.55 4173.70 19533.25

Other resources

Cash opening balance - 1948.14

Total Resources 29331.19 9002.78 36385.83

E xpenditure and Cash

1. Pay and Allowances I179.68 79.03 258.71

2. Supply and Services 253.08 105.87 358.95

3. Consultants (Local) 351'.83 2702.95 6220.78

4. Consultants (Interna-onal 15559.02 2410.80 9-0.73

5. Training (Local 34.18 989

6. Training (Foreign) 1459.93 1409.63 2869.56

7. Operation Cost 2303.85 15.48 2819.33

8. Capital Expenditure 3435.37 1413.79 4849.12

CD/VAT 32.88 13.34 46.2:

Total Expenditure 27383.05 9000.07 36383.12

Ash Closing Balance

prest Account

rating Account (RPA) - 2.71 2.71

rating Account tGoB)

al Closing Balance 1948.14 2.71 2.71

tal Expenditure and Cash 29331.19 9002.78 36385.83

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Deepeiing MTBF and StrengtheningFinancial Accountability Project

NOTES TO FINANCIAL STATEMENT30th June, 2014

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

Inception to 30"' For the year Inception to 30 h

June2013 2013-2014 June2014

Disbursement by GOB 549.87 203.50 753.37

Less : Refund to GOB 84.23 5.26 89.49

Total 465.64 198.24 663.88

2. LOAN FROM DEVELOPMENT PARTNERThe DFID has pro,iJed funds to the project to co%er it's share ofeligble project expenditures as ---------------------

-------- have been draw.r by. the projec, in accordance with the following wthdrawal procedurcs In Lakh laka).

Inception to 301' For the year Inception to 3 0 h

June 2013 2013-2014 June 2014

Initial Deposit Ad'. aince_

DA AdJance 13506.00 2682.70 16188.70

RPA SOE Procedure) - - -

RPA on SOE Procedure) 15359.55 4173.70 19533.25

Others - -

Total= 28865.55 6856.40 35721.95

3. OTHERS RESOURCESOther resources consist of the following:

Inception to30Th For the year inception to 3 0T

June2013 2013-2014 June 2014

Project Kcienues - -

E xc,hag : gai ns. 14 - TTotal - -

4. CASHThe project maintiis tiv, ank accu: ., an imprest bank account. or revolving fund. which is kept at BangladeshBink to hold funds advanced b, ADB and an operating accounting, which is kept at a commercial bank to holdfund: ad-,anced hy GOB 4s well as funds tran,ferred from the imprk,t bank account. Year end cash balances wereas 1ollows (In Lakh Tika)

Inception to 30t' For the year Inception to 3 0h

June 2013 2013-2014 June 2014

Imprest Az( :uut

Ooentin.ccou.: RPA) 6194.21 1.71 6196.92

)pera'in Account (GOB

Total = 6194.21 2.71 6196.92

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Auditors Report on Special Account

1. We have audited the Special Account Statement of the "Deepening MTBF and

Strengthening Financial Accountability Project" for the year 2013-14 under IDA grant no.

TF095283-BD.

2. Our Audit was carried out in accordance with International Auditing standards. Our audit

included such review of system of internal control, tests of the accounting record and

supporting documentation, verification of account balances, and other auditing procedures

that we considered necessary under the circumstances.

3. The Special Account Statements were prepared on the basis of cash deposits and withdrawals

for the purpose of complying with the above loan agreement.

(a) As per withdrawal application Tk. 2682.70 lakh was replenished by the donor during the

year 2013-14.

Opinion

In our opinion Special Account statements gives a fair view of the opening and closing balances and the

account activity for the year ended 30th June 2014 on the basis of cash deposit and withdrawals.

(Mst. Maksuda Begum)Deputy Director

For Director GeneralForeign-Aided Projects Audit Directorate.

Phone: 9361947

SPECIAL ACCOUNT STATEMENT

For year ending__ 3006/2014Account No I Deepening MTBF and Strengthening

Financial Accountability Project.

Depoitoy Bak ____- ___ :Agrani Bank Ltd

Address Central Law College Branch, Dhaka.

Related loan Credit Agreement TF095283-BD

Currenc : Taka

PART-A ACCOUNT ACTIVITY (RPA):

Taka (Lakh)

1. Opening balance:

Beginning baance- 1948.14

Sub-Total (1): 1948.14

2. Add:26.OTotas amount itd b Ie RA 6.7Total interest earnes if depost tled account amounTotal amount refunded to cover ineligible expenditure

Sub-Total (2): 2728.77

rTa n Total (1+2): 4676.91

3. Dedu ct.

l Lseri arges if not included above .amountwithdrais r.

Sub-Total(3): 4674.20

Eng i lance ofeGrand T sotal (2) - Sub Total (3)}: 2.71

P ART-B ACCOUNT RECONC-ILIATION:

Taka (Lakh)

1. Amount ad% ane bD 46208.12. Less total a-mount recovered by IDA4681

3. Equ,Fals present outstanding amount advanced to the Special

Account At fiscal year end (2013-2014) (1 - 21 27

4. Ending balance of Special account at fiscal year end 2.71

(2013-14) Total:

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

end:

Nil Nil Nil

Total: (4+5) 2.71

6. Pus amount withdrawn and not yet claimedTotal:

7. Less interest earing (if included in Special Account)Total:

8. Plus service charcct f not included in lines and 6 above)

9. Equals total advance to speciai Account accounted for at 2.71

Fiscal year and 30.06.2014

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