Office of the

Special Sectors Audit Wing (7 7 9L

Constitution Avenue

Islamabad

No.PA/FAP/DM/SSA/F -1 6/q ] Dated: 29-12-2016To

1. The Secretary,

Economic Affairs Division,Government of Pakistan

Pak Secretariat. Block "C",Islamabad

. The Country Director,

World Bank Resident Mission, 20-A, Shahrah-e-JamhuriatSector G-5/1, Islamabad

Subject: FOREIGN AIDED PROJECTS (FAPs) AUDIT REPORTS

Financial Attest Audits of the following FAP Audit Report has been conducted bythis office:

S,No Name of Projects Development____ ___ ____ ___ ___ ____ ___ ____ ___ ___Partners

I1. Balochistan Disaster Management Project MD IJWB

2. Certificate/Financial Attest alongwith the Audit Report containing therein themanagement letter (ML) on the same is attached herewith. The referred is hereby issuedsimu]taneously to the Government (FAD) and to the World Bank Resident MissionIslamabad through EAD.

3. The Director General Audit concerned is also being requested to issue a copy of theabove mentioned FAP certificate/Audit Report to the concerned Project Manager as well.

Enclosures; As above

Irshad Ahmed KaleemiDeputy Auditor General

Special Sector AuditOffice Telephone #051-9222917

Office Fa:#051-9219191Cc.

i. DO Audit Disaster Management House #716. Street # 82, 1-8/4 Islamabad,with the request to issue a copy of the above reports to the projectmanagement for their lurther necessary action.

ii, SPS to DAG FAOiii. Master File

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Financial Attested Report

on the Accounts of

Balochistan Disaster Management Project

(Multi Donor Trust Fund World Bank),

Grant No.TF-12516 PIK,

for the Financial Year 2015-16

AUDITOR GENERAL OF PAKISTAN

TABLV, OF CONTENTS

Page No.

AIBBIREVIA I IONS ANDi ACRONYMS

PART-1

PROJIA-l OVERVIF\\W 4

AV !DITOR' RHPORT TOT Tff NANA(GEl,MN Ii,N1 (Audit (piniln)

I:NANCIAL SIA I MI TS 6

PART-II ]0

(COVERI{[N(G [11 TI ER TO THEII M\AEMNI l] LEI [1:R I 6- 18~

vII [UTiE S MMAIRY L9

IN. INTROIM IC I1N lON

A DIT 1 OBJII [VIS -

3, AtD 1 1COPE A N 1) Ml [1 110 -MODY 20

4. Al DIT INDINGS AND REUOMMENDA 1 JONS

4 1 Organ ization and Finaic ial Managcmetni 2

4.2. Procuremeni and Contract Mianagmccnt 23

4.3. AsScl Manaeiment 2'.>

4A.( Comnpi ia wih k Gran( Covcnan 30

4. Susainabiiity 30

4ft Overall Assessmcnt 31

5. CONCLUSI0N

ACKN0W I i3f3lhNl

AN\I X!RIS 4

ABREREVIATIONS AND AC1ONYMS

Ail Auitr iGeneral o¯ Pakistan

A BD Asian )cvelopmcent Bank

IåDMI Balochistan Disaster Nianagement IiPrject

CBDR 1 Community Based Disaster Risk Managemei

( '( nCommunity ase d Organization

DR M N)tDisaster Risk Managemt

DMIS Disaster Managenu Inlänmation Systmn

1D NA 1 aimage Need Assessment

flAA IedeaJ ly Administrated rili Areas

ciud; (over'u1nmel of3aloeluistan

Gi S Geograplic [nfIrmauion System

NCO laternalional NrGoverimnenta[ Orgaiization

KPK Khyber Paikhtunha

MD DT MuLi [)onor Is FuI-Lnd

M& Mäoitoring & ILIatIOn

NS Managenont Information Systme

N DA NatioMnal Disaster Management Auliliority

iGo Non- (ovenrnenta] Organization

PCNA Post Crisis Need Assessment

1 EC Prov incial lnlergency Operafion Cinter

[IA Provi nial Disaster Maniageint Authori t

PS])]P Public Sectr 1 Developmlletl Progrant

S01 Standard ()peratin Procedures

PREFACE

Tle AudIor (Jeneral conducits audis under Articles 169 mi 1711 [iV ie

t «nsli t-I of t le < e amic Replhlic of Pakistmn 1 973, read xv ät Seetio ns 8 aid l ' o< ill u

.Aud itor ti jeflirl s 1,Funskna.fl Pax ss and [Mns and (ånditiåns oif sLinån ) t Wn ian=_IL

2001.[ [le audit of tie Halochi stan Disaster Nanagemrent Projcct (B DMP1). Que a

carried out accordingly,

lic Dircetorate Generat A1Vdit, Disaster Mi ana gement 1silanabad condiucted aidlit

0f the [alochistan Disaster Managenent Project. under tbc MultDi D)nr l run lmid

during Nvember 2016 or the period 2015-16 (up to 12' June 2016 thc dwte or clhe M'

prqicet) with a viem to reporting sign ilicant findings Lo stakeholdrs. Audi eramined il,

tcoinoIiy. eficiencv and eflectivencss aspects of ie ]Balocliistani Disaster NIanamcnicii1

Project. In addition, Audi alse assessed. on test check basis whIlher [lie manageme

Compjlied xwih applicable lawxs. rules. and regulations in managing the Project.

1 liC Report consiss of wo pars. Parl-I contains Aud itors Report U Audit Onpinon)

and Financial Staternents. Part-] contains Executives Sumniary. Manaemen i 1etter and

AudiL Fiindings.

1,he Report has been prepared for submission to lie World låank iin lerns iä rmiil

agreement xi (ivsecunent of Balochisin.

(Sher Bahadar Arbah)Direcitor Grneraf

Dated: December . 2016

I lamahad

PART-1

1. PROJECT OVI,RVIIW

2. ADITORS RIPORT T TIlE MANAGMENT

3. FINAN(1A1L STATEMENTS

PROJECT OViIRVIEW

Nani of project: Balochislan Disaster Managemem ProjectBalochisan

Sponsoring authurity: lnlernio4nal Bank fr RconistrIedLn &

DevelomnUlenioa eeomAs sct LL in

liecuting authrity: Provincial Disasler MawngemeMn Authori

(PDMNIA ). B3atlcelan

Grant No: TF-1251 6-Pak

K-i cos: I S$ 5 million

Dale of commiencient: July L. 2012

Aelual dat of commeneeIllnt: March. 2(11

Date of competion (as per PC-l): June 30, 2015

Date of approval by WrL Bank: July 1. 2012

Original grant closing date: Jim 30, 2015

First extensiot Oci 31 2015

Sceond extension I)ec 12 2015

Third extensism (Final extension) June 12. 2016

Progressive granl uiilization slatus

upt" 2014-15: Ris 342-020 imnillion

Graint utilization siaus in

F.V 2015-16- Rs 135-615 million

Progressive expenditu re:

Ui pit elose if project: Rs 477.635 millior

4

AUDiTOR'S R EPORT TO THE MANAGEMENT (Audit Opinion)

We have audiied the acconipaiying financial siatements of Balochisan Disasler

MlLiianagement ProiLet comprising Stalements of Rceeipts and Payments. Statement of

CompLrisLJ Sf Budget and actial expenditire together ili the noles formip pai1

thereof for the y ear ended 2015- 1 6 (0 vne 12- 2016 datl of close ol projl Cel b

Maunagleenl Resp)onIsiiHty

tt Is the responsibility of project iiiaiiagement to establishi and iaintaiii a systemi

oC internall colitrols. and prep4ri and present the Statemeni o[- Cash. Rec]ts mid

ay ments in con.Ionmity with the requircients of Cash Basis lPSAK, Financlt Reporånunder lie Cash Basis oi Accounting Standard.

Auditor's ResponsibiIity

The responsihilly of the audltor is to express an opinion on thie Ii nanicia1

statments based on the aidit condueted. We conducted our audit in a%cordaie i hii be

In lernational Stndards of Supreme Audit [nstitutions. Those sumndards reqi rc thii wve

plan and perform ihe audit to obtain reasonahle assurance aboLJ heher hile Illnancial

statements are firec of matcrial misstaternents. ie audit process '5l1es e;1minii.e i

cust basis. evidence supporting the rimounts and diselostres in tie iinancial statci eLits. li

also ielides assessing tbe accounting principles used and significanA sintes imde by

managemLicllnt. as well as evaihating ihe overall siatemeint presentation. We helie i that our

audit provides a resonamble basis for oU Lpinion.

Opinion

l1 our opilnion:

alhe inancial stalements present fairly. in all material r1sects. i cas receipi

and payments hy the prjct for the year ended J une, 201 6 in accordancce o i 1h

C4as1 asis IPSAS. Fainncial Reporting under the Cas Basis oj Acc:ii miii'

Standard,h) The expenditure hais been incurred in accordance Itt e requ uiremeins o l g

agreements.

(Sher !lahadar .rhub)Director Gcinral

Diated: Dkeceiber , 2016

Ianimbad

5

FINANCIAL STATEMENTS

FOR TI HL YEAR ENDED ON JUNE 30, 2016

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