OFFICE OF THE.qA I En3Iw-< (#TI -1 11, ACCOUNTANT GENERAL (AUDIT) -1

Tz1 J MAHARASHTRA, NAGPUR'TqThf T ',WT 0# 3 220, ift [ F , -440001 'Audit Bhavan', Post Bag No. 220, Civil Lines, Nagpur-440001

VIV lTelephone*0712-2564506 to 2564510 Website: http://agmaha.cag.gov.in' /W I Fax: 0712-2524130 E- mail :agaumaharashtra2@cag.gov.in

CASS-III/AC/MACP/2015-16/ 10Dated: ic October 2016

To

The Project Director,Maharashtra Agriculture Competitiveness Project,Deptt. of Co-operation and Marketing,Project Co-ordination Unit,Plot No. F/E/78, 1st Floor,LDB Training Centre Building, Market Yard,Gultekadi,Pune-411 037

Subject: Audit Certificate in respect of World Bank assisted MaharashtraAgriculture Competitiveness Project (MACP) Cr. No. 4809-IN for theyear 2015-16

Madam,

Please find enclosed Audit Certificate along with Annexure-A, Annxure-B,Annexure-C, Work abstract and Management Letter in respect of World Bankassisted Maharashtra Agriculture Competitiveness Project (MACP) LoanNo.4809-IN for the year 2015-16 for further necessary action at your end.

Yours faithfully,M.yAoarasuatra AgricuGturer

21 tC ZThSSr. Dy. Accountant General(E.S)AA1~ p LiIWN o. t

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<bZ4 0q OFFICE OF THE1itq1si3 (Iv Iwml)-II, ACCOUNTANT GENERAL (AUDIT)-II

1 , MAHARASHTRA, NAGPUR'9Tif FZ1 rfiw 4t W. 220, RTiF 7il , TTTF-440001 'Audit Bhavan', Post Bag No. 220, Civi Lines, Nagpur-440001

STVIV / Telephone - 0712-2564506 to 2564510 Website: http://agmaha.cag.gov.in0fW I Fax: 0712-2524130 E- mail : agaumaharashtra2@cag.gov.in

Report on the Project financial Statements

We have audited the accompanying financial statements of the Maharashtra

Agriculture Competitiveness Project, (financed under World Bank Credit No. 4809-IN),which comprise the Statement of Source and Applications of Funds and the Reconciliation of

Claims to Total Applications of Funds for the year ended 3 1t March 2016. 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 of 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 Applications of Funds of Maharashtra Agriculture Competitiveness Project.,Credit No. 4809 -IN for the year ended 31" March, 2015, in accordance with Government

of India Accounting Standards.

In addition, in our opinion, (a) with respect to SOEs, 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 (Credit No. 4809-IN). During the course of the audit,

SOEs/PFS for Z.22,56,84,867/- (Rupees Twenty two crore fifty six lakh eighty four thousand

eight hundred and sixty seven only) and the connected documents were examined and these

can be relied upon to support reimbursement under the Loan / Credit Agreement

(Annexure A).

(Amount objected Z. 16,43,321/-(Rupees Sixteen lakh forty three thousand three hundred

and twenty one only) as shown in Annexure-B).

This report is issued without prejudice to Comptroller and Auditor General's right to

incorporate the audit observations in the Report of Comptroller and Auditor General of India

for being laid before Parliament / State or UT Legislature.

AASTHA LUTHRADate: Sr. Deputy Accountant General (E.S.)

Annexure 'A'

Audit jurisdiction-wise Expenditure incurred during the year 2015-16 in respectof World Bank Assisted Maharashtra Agricultural Competitiveness Project

(Financed under World Bank Loan No. 4809-IN)

Sr. Name of the Office Amount of expenditure incurred on theNo. Pro ect as per SOE/PFS01 Office of the Pr. Accountant General, 0 15,65,46,661/- ( Rupees Fifteen crore

(Audit)-I, Maharashtra, Mumbai. sixty five lakh forty six thousand six

hundred and sixty one only.)

02 Office of the Accountant General, Z. 6,91,38,206/- (Rupees Six crore ninty

(Audit)-II, Maharashtra, Nagpur one lakh thirty eight thousand two

hundred and six only)

Total Z. 22,56,84,867/- (Rupees Twenty two

crore fifty six lakh eighty four

thousand eight hundred and sixty

seven only )

Sr. Audit Officer/CASS-1II

Annexure 'B'

Details of amount held under objection on account of money value paras as aresult of local audit in respect of World Bank Assisted Maharashtra Agricultural

Competitiveness Project (Financed under World Bank Loan No. 4809-IN)for the year 2015-16

Sr. Name of the Office Para Nature of objection Amount objectedNo. No. (in Z.)01 Office of the Pr. 2 Incorrect depiction of grants from 6,70,869/-

Accountant General, Government and eligible expenditure

(Audit)-I, in PFS (DDRCS)

Maharashtra,

Mumbai. 4 Incorrect accountal of expenditure- 1,65,191/-Economic Sector amount not utilized

02 Office of the 1 Unutilised grant (The Divisional 3,67,000/-Accountant General Jt.Dir, of Agriculture, Aurangabad)

(Audit)-II,

Maharashtra,

Nagpur

Economic Sector

1 Non-crediting of interest to APMC 2,10,394/-account (DDRCS, Amravati)

1 Pending interest on MACP Scheme 4,299/-(DDRCS, Chandrapur)

1 Excess expenditure incurred on 8,750/-stationery, advertisement and studytour (DDC, AHD, Amravati)

2 Non credit of Bank interest earned 4,568/-(DDC, AHD, Amravati)

1 Unutilisation grant (DDC, AHD, 52,500/-Beed)

1 Non Production of voucher (DDC, 1,27,500/-AHD, Washim)

1 Excess expenditure incurred on 32,250/-stationery and advertisement (DC,AHD, Yavatmal)

Total 1643321/-(Rupees Sixteen lakh forty three thousand threehundred and twenty one only)

Sr.Audit Officer/CASS-III

Annexure 'C'

Details of inadmissible amounts of earlier years Certification held admissible oncompliance during current audit in respect of World Bank assisted Maharashtra

Agriculture Competitiveness Project, Credit No. 4809-IN Period 2015-16.

Mumbai JurisdictionSr. No. Name of the Implementing Year Para Amount

Agency No. (in Rs.)DDRCS Ahmednagar 2013-14 1(A) 5031801

1(B) 872035

1 2 131237

3 113179

2 DDC-AHD Pune 2013-14 5 310000

3 DDRCS Jalgaon 2014-15 3 173826

Total 6632078

Nagpur jurisdictionSr. No. Name of the Implementing Year Para Amount

Agency No. (in Rs.)1 DDRCS, Akola 2014-15 1 20,749/-

2 DDRCS, Aurangabad 2014-15 1 2,42,353/-

3 DDRCS, Buldana 2014-15 1 68,102/-

4 DDRCS, Gondia 20 14-15 1 57,358/-

5 DDRCS, Jalna 2014-15 1 55,350/-

6 DDRCS, Nagpur 2014-15 1 35,204/-

7 DDC-AHD, Beed 20 14-15 1 22,500/-

8 DDC-AHD, Nagpur 2013-14 1 21,000/-

Total 5,22,616/-

Sr. Audit Officer/CASS-1II

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CASS (W&F) / M.L. MACP / 15-16Dated October, 2016

To,Smt. Sampada Mehta (1AS),Project Director,Maharasbtra Agriculture Competitiveness Project,Deptt. of Co-operation and Marketing,Project Co-ordination Unit,Plot No. F/E/78, I't Floor,LDB Training Centre Building, Market Yard,Gultekadi,Pune-411 037

Subject: Management letter on the issues observed during the audit of WorldBank assisted Maharashtra Agriculture Competitiveness Project(MACP) (Credit No. 4809-IN) for the year 2015-16.

Madam,Audit of the Statements of Expenditure (SOE) in respect of World Bank

Assisted Maharashtra Agricultural Competitiveness Project (Credit No. 4809-IN) has been conducted for the year 2015-16. As envisaged in the StandardizedTerms of References (TORs), the Management letter pointing out the followingmajor observations noticed during the course of audit is prepared for issuealong with the Audit Certificate.

I . In the following units there were discrepancies in the opening balance ofcash book and that shown in the Statement of Sources & Application of Funds(Annexure-20A)

Name of the Opening Opening Balance RemarksUnit Balance as (01/04/2015) as

per Cash per Statement ofBook sources &

Application ofFunds (Annexure-20A)

DDC-Jalgaon ? 15,50,0601- -NIL The arnount was received atthe fag end of the financialyear 2014-15 and expenditureincurred in the year 2015-16.

DDC-Dhule Z 1, 12,173/- NIL Expenditure incur-red in theyear 2015-16

Project Z 5,24,069/- NIL The amount was received atthe fag end of the year

Unit, Animal 2014-15 and expenditureHusbandry, incurred in the year 2015-16Pune

Project NIL ( 48,062/- Grants received &Implementation expenditure incurred duringUnit, the year 2015-16 wasAgriculture Z 340.00 lakh. Incorrect

depiction of opening bankbalance resulted inunderstatement of fundsreceived from Governmentthrough budget by Z 0.48 lakhin the Annexure 20A of PFS.

2. Non utilization of grants received in 2015-16 in the same financial

year.

In the following cases grants received during 2015-16 were utilized in

the subsequent year.

* DDO of the District Dy. Commissioner of Animal Husbandry,

Ahmednagar, received grants of Z 9,36,386/- for the year 2015-16 and

expenditure is incurred in the year 2016-17.

* DDC-Nasik, received an amount of Z 9,29,744/- on 31-03-2016 and the

expenditure is incurred in the year 2016-17. However, Statement of

Sources and Application of Funds (Annexure 20A) of the unit shows

that ? 9,29,744/- received and expenditure is incurred in the year 2015-

16.

* DDCAH, Buldhana had claimed an expenditure of

t. 12.94 lakh, against the grant received an amount of Z 8.49 lakh during

the year 2015-16. Scrutiny of records revealed that out of the total

expenditure of Z.13.05 lakh incurred during the year 2015-16, an amount

of Z. 1.06 lakh pertaining to the year 2013-14 was claimed in SOE of the

year 2014-15. Further an expenditure amounting of Rs. 3.48 lakh

pertaining to the year 2014-15 was also included in the SOE of the year

2015-16. The unspent amount of Z. 92,989/- was also shown as the

expenditure incurred during the year 2015-16.

* DDCAH, Yavatmal has booked an expenditure of Z 8.60 lakh during

the year 2015-16 against the grant received of ? 8.88 lakh. Scrutiny of

records (Cash book and vouchers) revealed that the expenditure of Z

7,46,333/- only pertains for the year 2015-16, however expenditure

incurred during the year 2014-15 and 2016-17 were also included in the

SOE as shown below:

Grants received during the year 2015-16 - Z 8,87,500/-

Expenditure claimed for 2015-16 in SOE - Z 8,60,841/-

Expenditure of 2014-15 included in SOE - Z 31,200/-

Expenditure of 2016-17 included in SOE - 7 83,308/-

Actual expenditure incurred in 2015-16 - ? 7,46,333/-

3. Pending utilization certificates.

Amount of expenditure booked in Office of the Pr. Accountant General

(A&E)-I, Mumbai is Z 15,30,54,400/- and the amount of objection for pending

Utilisation Certificates is 2,03,47,939/-.

4. Non conducting of Test for the animals treated in Health Camps.

As per instructions contained in the guidelines for implementation of

health camp for treatment of animals (Blood /Urine Test), tests are to be

conducted in respective Animal Husbandry labs in respect of animals treated in

the health camps held under MACP.

In DDC, AHD, Yavatmal during the year 2015-16, five health camps

were held in Pusad and an expenditure of Z. 7,37,200/- incurred on

medicines/supplements without ensuring the Blood/Urine Tests and verifying

the test Report.

Yours faithfully,

Sr. Dy. Accountant General (ES)