c date 4 9 - world bankdocuments.worldbank.org/curated/en/750231523473124339/pdf/124… ·...

DEPARTMENT OF MACROECONOMIC AFFAIRSMINISTRY OF FINANCE

TASHICHHO DZONG

DMD/WB/14705/2016/ 'CDate 4 9 2y

ichiro IshiharaResident RepresentativeWorld BankThimphu.

Sub: Forwarding of Audit Report.

Sir,

Please find enclosed herewith two copies of Audit Report on the Accounts and Operations of the

Sustainable Financing for Biodiversity Conservation and Natural Resource Management Project,

TF 14705, funded by World Bank, implemented by Bhutan Trust Fund for Environmental

Conservation, Thimphu, for the period from 01/07/2015 to 30/6/2016 onward submission to theWorld Bank.

Kindly acknowledge the receipt.

Yo rs faithfully,

(Lha otay)Dy. Chie rogram Officer

Post Box No 117. Tel # PABX. 00975-2- 322271/322285/322223/322514/327763. Fax: 323154. wwis.mogov.t

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Reporting on Economy. Efficiency B Effectiveness In the use of Public Resources

r-AIN: 14243

AUDIT REPORT ON THE ACCOUNTS AND OPERATIONSOF THE WORLD BANK PROJECT NO.TF014705 'GRANT FOR

SUSTAINABLE FINANCING FOR BIODIVERSITYCONSERVATION AND NATURAL RESOURCES

MANAGEMENT' IMPLEMENTED BY BHUTAN TRUST FUNDFOR ENVIRONMENTAL CONSERVATION, THIMPHU

1

IPERJOD: 01.07.2015 TO 30.06.2016

December 2016

ROYAL AUDIT AUTHORITYteBhutan Integrity Kouse AA

Roporting an Economy, Efficiency S Effectiveness in the use of Public Resources

RAA/GGD/A RACSO(B TFEC-06)/2016/4103 Date: 30.12.2016

The DirectorDepartment of Public Account

Thimphu

Subject: Audit Report on the Accounts and Operations of the World Bank fundedproject, "Grant for sustainable financing for biodiversity conservation andnature resources managenent' implemented by the Bhutan Trust Fundfor Environmental Conservation, Thimphu for the period 01.07.2015 to30.06.2016

Sir,

Enclosed herewith please find the audited Financial Statements and Auditors' Report there

on in respect of the World Bank funded "Grant for sustainable financing for biodiversity

conservation and natural resources management", implemented by the Bhutan Trust Fund for

Environmental Conservation (BTFEC) for the financial year ended June 2016. The audit was

conducted as required under the Audit Act of Bhutan 2006.

Auditors' Report on the Financial Statements

As may be noted from the Auditors' Report, the project had generally maintained proper

books of accounts, and the financial statements were in agreement with the accountingrecords. Accordingly, the RAA has issued unmodified [clear] report.

Audit Findings & Recommendations

The auditors' review of the accounting records, internal controls and operations of the Project

revealed some deficiencies. However, all audit observations were settled based on the

justifications and supporting documents furnished to the RAA, which are transmitted to the

BTFEC separately in the form of Management Appraisal Report for future compliance.

Achievements

The Royal Audit Authority had also noted achievements made by the project during the

period under audit which are summarized below and detailed in the main report. Some of the

major achievements of the project till date are as summarized follows:

> Various activities directed towards improving Conservation Management of the High

Altitude Northern Areas (HANAS) Landscape in Bhutan including the protected areas

and associated methods, forests and agricultural systems were found carried out; and

E1 ~ C~ individual must strrve to be principled And tidJdiiuls in po%tions io f respo ilbtly mut i rm hri der-/is .Uajesty thY King Jigme Khesar Yamgve/ Wangih'A

P.O. Box: 191. Ka%vajangsa. Thimphu: Bhutan. Tel: 322111 / 322833, Fax: 323491Website: wwv.bhutanaudit.eov.bit email: [email protected]

C apacit1 building activities - traimng and conference were conducted mmainstreamino conservation and sustainable forest and natural resource managememapproaches in national policies, strategies and plans.

The RAA acknowledges the kind co-operation and assistance extended to the audit team bythe officials of the Project management which facilitated the timely completion of the audit.

Yours sincerely.

(Dechen Pelden)

Assistant Auditor General

General Governance Division

Copy to:

I. The Hon'ble Secretary, Ministry of Finance, Tashichho Dzong, Thimphu2. The Project Manager. IDF Grant, BTFEC,Thimphu3. The AAG, PP&AARD, RAA, Thimphu4. The AAG. FUCD, RAA, Thimphu5. Office Cop>, RAA,Thimphu6. Guard file

TITLE SHEET

1. Title . Audit Report on the Accounts andOperations of the World Bank funded

project "Grant for sustainable financing forbiodiversity conservation and naturalresources management (GrantNo.TFO 14705)"

2. Implementing Agency . Bhutan Trust Fund for EnvironmentConservation, Thimphu

3. Project Manager : Dr. Pema Choephyel, DirectorCID No.: 10709002672

4. Drawing and Disbursement Officer : Dr. Pema Choephyel, DirectorCID No.: 10709002672

5. Finance Personnel . Singye Doiji, Chief Financial OfficerCID No: 11601002881

RinchenWangno, Asstt. Finance OfficerCID No.: 10604000090

6. Period Audited : 01.07.2015 to 30.06.2016

7. Schedule of Audit . Planning :28.11.2016 to 02,12.2016Field : 05.12.2016 to 13.01.2017

8, Composition of Audit Team : Jigme Derna, Audit OfficerEID No.: 200901043

Rinchen Gyeltshen, Assistant Audit OfficerEID No.: 20150104976

8. Audit Engagement Letter No. : RAA/GGD/ENG/CSO/(BTFEC-06)/3686dated 28.11.2016

9. Supervising Officer : Dechen Pelden, Asst. Auditor General, GGDEID No.: 9811009

10. Date of Audit Exit Conference : 21.12.2016

11. Focal Person : Jigme Dema

Disclaimer Note

The coverage of this report is based on ile facts. figures and information made available andaccessibie to le team bs the management of ihe World Bank funded project Grant forsustainable financing for biodiversity conservation and natural resources management"project iimplem emted bx 3hutan Trust Fund for Environment Conservation. Thimphu. Theopimion 'of the auditors shall onl confine to tie period covered and inforimation mnadeavailable tiilthe time of issue of this report.

This is also 1o certif\ that ile auditors during he aidii ad nehher yielded to an> pressure.nor dispensed an> faxO r r resoLed to an unethical means that w ould be considered as

e 0olation ef ile Royal Audit Authorhy's Oath of Good Condu.c Ethics and Secrecy ofAuditors.

Table of Contents

AUDITORS REPORT ON THE FINANCIAL STATEMENTS OF THE WORLD BANK

FUNDED PROJECT "GRANT FOR SUSTAINABLE FINANCING FOR BIODIVERSITY

CONSERVATION AND NATURAL RESOURCES MANAGEMENT' IMPLEMENTED

BY BHUTAN TRUST FUND FOR ENVIRONMENTAL CONSERVATION, THIMPHU

FOR THE FINANCIAL YEAR ENDED 30" JUNE, 2016............. .......... ....09

EXHIBITS:

1. Statements of Sources & Uses of Fund.................................Exhibit - I

2. Statement of Uses of Funds and Projections by Project Activities...................Exhibit - II

3. DA Advance Account Reconciliation Statement and Cash Projection.............Exhibit - III

4. Statement of half yearly Releases/Expenditures for Grantee Institutions...........Exhibit - IV

5. Statement of Prior Review Contracts... .............. ....... .... Exhibit - V

6. Statement of Post Review Contracts.......................... ..... Exhibit - VI

7. Significant Accounting Policies and Explanatory Notes.................Exhibit - VII

8. Management Assertion Letter...................... ...... Exhibit -VIII

AUDIT FINDINGS ON THE ACCOUNTS AND OPERATIONS OF THE WORLD BANK

FUNDED PROJECT 'GRANT FOR SUSTAINABLE FINANCING FOR BIODIVERSITY

CONSERVATION AND NATURAL RESOURCES MANAGEMENT' FOR THE

FINANCIAL PERIOD IST JULY 2015 TO 30TH JUNE

20 16 ..................................................................................................... . . 12

PART-I: ACHIEVEMENTS.............................................12

APPENDICES:

A: PROFILE................... ................ ................... 1

B: OBJECTIVES OF AUDITING................. ....................... 14

C: AUDIT METHODOLOGY............................................ 14

ACRONYMS

BITFEC Bhutan Trust fund for Environmen Conservation

CID No. Citizenship Idemnitn Number

EID No. Employee Identity Number

FU& CD Follow up & Clearance Division

GGD General Governance Division

GI Grantee Institutions

MoF Ministry of FinanceNu. Ngultrum (Bhutanese Currency)

PP&AARD Policy, Planning and Annual Audit Report Division

RGoB Royal Government of Bhutan

RAA Royal Audit Authority

SOB, Statement of Expenditure

WB World Bank

AUDITORS' REPORT ON THE FINANCIAL

STATEMENTS

AVDITORS' REPORT ON THE FINANCIAL STATEMENTS OF THE WORLD

BANK FUNDED PROJECT "GRANT FOR SUSTAINABLE FINANCING FOR

BIODIVERSITY CONSERVATION AND NATURAL RESOURCES

MANAGEMENT" FOR THE FINANCIAL YEAR ENDED 30"" JUNE 2016

Introductory Paragraph

The Royal Audit Authority (RAA) has audited the accompanying financial statements

(Statement of Sources & Application of Fund) and the accompanying notes to the financial

statements set of on page (1) to (9) of the "Sustainable financing for biodiversity conservation

and natural resources management" project financed under World Bank Grant No.TF014705

as of June 30, 2016 for the year then ended. The RAA's responsibility is to express an

opinion on these financial statements based on its audit.

Scope Paragraph

The RAA conducted the audit in accordance with RAA Auditing Standards, Generally

Accepted Auditing Standards and World Bank Guidelines. Those Standards or World Bank

guidelines require that the RAA plan and perform audit to obtain reasonable assurance about

whether the financial statement are free of material misstatement. An audit includes

examining, on test basis, evidence supporting the amounts and disclosures in the financial

statements. An audit also includes assessing the accounting principles used and significant

estimates made by management, as well as evaluating the overall financial statement

presentation. The RAA believes that the audit provides a reasonable basis for its opinion.

Opinion Paragraph

In RAA's opinion, the project financial statements present fairly in all material respects the

Sources and Application of Funds of the World Bank Project "Sustainable financing for

biodiversity conservation and natural resources management" for the year ended June 30,

2016 in accordance with Public Finance Act of Bhutan 2007 and the Financial Rules and

Regulations 2001.

The RAA also reports that:

(a) The funds provided under the Grant No. TF014705 have been utilized for the purposes

for which they were provided;

(b) With respect to statement of Expenditure (SOEs), adequate supporting documents have

been maintained to support claims to the World Bank for reimbursements of

expenditures incurred;

(c) With regard to the following two project components, there were differences in the

expenditures reported/included in this overall financial statements and the one reflected

in the G's respective audited financial statements, as worked out in the table below;

Name of Project Amount reflected in GI's Amount reported/inclu ded Difference

Component audited financial in Consolidated financial Amount

statements (Nu.) statements (Nu.) (Nu.)

MB 151Y15~Biodiversity

ConenIation &0(035.Oi ] 042.083.51 32,20&.50

sustinablhe use2 in

:\N.\s NBC)"1IB 16 1

Sustainablemanmntn of1resources insidc Jime

Doiji National Park 4.448.528.28 4.1986603.28 249,925.00

througŽh integrated

partieip a tis ofcommiunities and othier

kev stakeiholders t(d) With regard to the following projcet component 'MB13SY14 (Strengthening resources

monitoring. patrolling, and services delivery of Jigme Doiji National Park), there were

unreconciled figures between the GI's respective audited financial statements and the one

reported/included in this overall financia] statemenis, as worked out in the table below:

Particulars Arnount reficcted in GI's Amount reported/included Difference

audited financial in Consolidated financial Amount

statements (Nu.) statements (Nu.) (Nu.)

Opening Balance 1,701,321.091 587,369.09 1,113,952.00

Expenditure 2,131,564.32 1 1,536,000.00 595,564.32

Closing balance 2.237.402.77 1 1,551,396.09 686,006.68

AuLn r

Noted & Coneurred:/ 1j

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Assistant Auditor Gener /

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Grant for Preparation Sustainable Financing for Biodiversity Conservation and Natural Resource

Management in Bhutan Project

Grant No.TF014705

Reconciliation of Claims to Total Application of Funds

Report for the year ended 30th June 2016

PART-1

Schedules Amt.(Nu.'000)Cu

Overall Reconciliation rrent Year

(A) Expenditures as er SAGE ACCPAC-as per World Bank FIC Code-, I_ 64,051,042.50

(B) Expenditures as reported in project Interim Financial Reports 11 64.0511,042.50

(C) Expenditures claimed from World Bank during the year t III I 59,W,463.09 4,205,579.41

PART-11Amt(Nu.'OOO)Cur

Explain the difference between (A) and (B), if any: rent Year

Expenditures incurred but not claimed 0.00

-Advance wrongly reported as expenditures 0.00

I Expenditures not considered eligible by the Bank 0.00

PART-111Amt(Nu.'OOO)Cur

Explain the difference between (B) and (C), if any: rent Year

Expenditures not yet claimed 52,1158,402.16

Expenditures for earlier years claimed this year 47,952,822.75 4,205,579.41

CFA Project Director_,--';:--'

D tate! Date

Significant Accounting Policies and Explanatory Notes:

I.The Project Financial Statements have been prepared on cashbasis;

2. Receipts of funds in the project are recognisesed on the basis of relaese from the DPA,Ministry of Finance;

3,Expenditures are accounted for on cash basis as and when disbursements are made;

4.Replenishernents from the World Bank are made on the Interim Unaudited Financial Report(IUFR) submitted

on quartely basis.

Acting Chief Finan al Officer Director

BTFEC BTFEC

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BANK OF BHUTANBranch THIMPHU

Account Statement From 01-JAN-2016 To 31-MAR-2016

Account Number 20300220690870017 OLD AC 20300220690870017 2&JUL-2016

SUSTAINABLE FINANCING FOR BIODIVERSITY NATURAL RE M Page 1 of 1

GEF GRANT NO TF014705,DPA, THIMPHU

Date Reference Number Withdrawals Deposits Balance

Opening Balance 1000.00 1000.00

29-MAR-2016 TRANSFER,RMA/BD]3538, 27614452.89

27815452.89

Totals 27815452.89

Closing Balance 27815452.89

NOTE:- DEBIT 13ALANCE I-)UNLESS A CONSTITUENT NOTIFIES THE BANK IMMEDIATELY OF ANY DISCREPANCY FOUND BY HIMIHER

IN HIS/HER STATEMENT OF ACCOUNT IT WILL BE TAKEN THAT HE/SHE FOUND THE ACCOUNT CORRECT

THIS IS A COMPUTERISED STATEMENT AND MAY NOT REQUIRE SIGNATURE

BANK OF BHUTAN

STATEMENT OF ACCOUNT

ACCOUNT NO, 100891333 ACCOUNT TYPE CA - GOVERNMENT DEPT

CUSTOMERNO 10632518 NAME SUSTAINABLE FINANCING FOR BIODIVERSITY

STATEMENT FROM 01-APR-2016 to 30-JUN-2016 ADDRESS AND NATUTRAL RESOURCES MANAGEMENT

DATE OF OPENING : 02-SEP-2013 DPA THIMPHU

OD Limit : 0 DPA THIMPHU

CURRENT BALANCE : 1,000.00 THIMPHU

RATE :0%

BRANCH NAME THIMPHU MAIN BRANCH

Opening Balance as on 01/04/2016: 0.00

POST VALUE PARTICULARS CHEQUE NO! DEBIT CREDITI BALANCE

DATE DATE REFERENCE

01/04/2016 01/04/2016 BY CIF BALANCE: 27,815,452.89f 27,815.452.89

1510f/2016 1150412016 TOTOTRANSFER'DPAlDATF014705/2349: 27.814.452.89 1,000.001 i 1 BILL 000000010093572.00020

o30/0s2018 3010612016 TO ANNUAL MAINT FEE:99999 75.00 925.00

T 27,814,527.89 27,815,452.8

STATEMENT SUMMARY:- OPENiNG BALANCE TOTAL DEBIT TOTAL CREDIT CLOSING BALANCE

0.00 27,814,527.89 27,815,452r89 925.00

END OF STATEMENT

UNLESS A CONSTITUENT NOTIFIES THE BANK IMMEDIATELY OF ANY DISCREPANCY FOUND BY HIM/HER IN HIS/HER STATEMENT OF ACCOUNT

I WILL BE TAKEN THAT HE)SHE FOUND THE ACCOUNT CORRECT.

IS IS A COMPUTERIZED STATEMENT AND MAY NOT REQUIRE SIGNATURE.

Page 1 of 1

BHUTAN NATIONAL BANK LIMITEDYo %ur e(ationship,a nk

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01-Jul-2015 01-Jul-2015 0001983151820036 DRUK LINK 1 782,845.40TECHNOLOGY Ref.492301ii _ ___

02-Jul-2015 02-Jul-2015 000CWA0151 830170 CHO WITHDRAWÑ¯W-Ÿ 15,0G.00GEMBO TSHERING CID#11303001420 Ref. 492305 __

d4-Jul2015 ¯ 4-Ju-201¯5 OO iOD1518565 CO ISSD TO HARI 386,628.00PRASAD KAFLEY BYBTFEC-DONAR PROJECTRef, 390349

07-Jul-2015 07-Jul-2015 000CWA0151880127 CASH PAID TO DEKI 4,875.00CHODEN CIDNO.11513003115 Ref.492302

08-Jul-2015 08-Jul-2015 0001615151890033 RRCO Ref. 390348 507.9008-Ju_-2015 '08-Jul-2015¯ 0001615i51890040 RRC¯Ref. 492303 98,285¯2508-Jul-2015 .08-Jul-2015- _ 0001615151890053 RRCO Ref. 390350 I 8,787.00

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Page No. 1

BHUTAN NATIONAL BANK LIMITEDv - Your tegationshr»pQa


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07-Aug-2015 07-Aug-2015 000FWA0152190001 [email protected] PAID 521,523.70TO SINGYE DORJI CIDNO.1 1601002881 VIDEBNBITH/GEN-REL1 51617

10-Aug-2015 - 10-Aug-2015--- 000CHQD152220074 CHO ISSD TO ATLAS 479,171.50TRAVEL SERVICEBYBTFEC-DONARPROJECTRei, 492314

11-Aug-2015 11-Aug-2015 000CHQD152230128 CHO ISSD TO 5,390.00TSHENDENSOFTBYBTFEC-DONAR PROJECT

___________ Ref.ý 492310 ___I __ -___ __

¯iŠüg¯2d15 13-Aug-2015 0001433152250037¯ R RCO Ref 492307 '1,147.0013-Aug-2015 13-Aug-2015 0001433152250042 RRCO Ref. 492312 175.4028-Aug-2015 28-Aug-2015 006CWA0152400115 CHQ WITHDRAWN BY 5,200.00

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Page No. I

BHUTAN NATIONAL BANK LIMITEDYour e(fationsfizp 4Bank


01-Sep-2015 01-Sep-2015 0001446152440012 THINLEY WANGDI Ref. 9,100.00492317

03-Sep-2015 03-Sep-2015 000CDA0152460451 CASH DEPOSITE BY 74,650.00

RINCHEN WANGMO

03-Sep-2015 03-Sep-2015 --. 0001615152460001 wood craft centre ltd Re!. 3,204.0

__ 492309

10-¯Sep-205 10-Sep-2015 ¯ 000231~5230043 WOOLIGTSHOGPA Re. 641,600.00492319

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28-Sep-2015 28-Sep-2015 0001615152710069 THINLEY WANGDL Ref. 9,100.00492323 1

Page No. 1

BHUTAN NATIONAL BANK LIMITED')ourPe a tio nsfi ip(&ank


01-Oct-2015 01-Oct-2015 0001333152740022 RRCO Ref. 492322 i 1,147.00

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5000001857020 Ref.492330

28-Oct-2015 28-Oct-2015 000CWA0153010122 PAlD TOPASSANGA/C# 12,850.00

5000001857020 Ref. i

492331

28-dfOct1 28-Oct-201 5 000CWAOI153010127 PAID TO PASSANG A/C# j7,753.005000001857020 Ref.492327

29-Oct-20129-9-Oct-2015 - 0001336153020032 THINLEY WANGDI Ref. 9,100-00--

492329

Page No. 1

BHUTAN NATIONAL BANK LIMITED11'ur Xefationsliip Bank

Account Activityas of 27-04-2016 10 07:33 GMT +0600

02-Nov-2015 02-Nov-2015 0001446153060026 EDELWEISS 5,664,00RESTURANT Ref. 492325

02-Nov-2015 2o0000161515306W105 KUEN JAM DUMPLINGS 6,195.0QRESTAURANT Ref.492324

13-Nov-2015 13-Nov-2015 0001617153170009 RRCO Ref, 492328 _ 11470

21-Nov-2015 __ 21-Nov-2015 0001614153250002 45,935238.67

24-Nov-2015 24-Nov-2015 0001615153280040 DEPARTMENT OF 39,187,180.00PUBLIO ACCOUNTS Ref492335 ~ - ~ _

25-Nov-2015 25-Nov-2015 0001446153290¯48 EDELWEiSS 19,906.6RESTURANT Ref. 492336

26-Nov-2015 26-Nov-2015 0OOCHQD153300238 CHQ ISSD BY 94,000.00BTFE0-DONAR PROJECTTO BHANU BHAKTA

_____ _____ ___CHHETRI- Rei. 492332 ___

26-Nov-2015 ¯ 26-Nov-2015 00OHOD153300240 CHQ ISSD BY 18800000BTFEC-DONAR PROJECTTO BHANU BHAKTACHHETRI Ref. 492338 i

26-Nov-2015 000CWA0153300241 PAID TO THINLEY 7,75300WANGDI Id# 11503004281Ref. 492339

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WANGDI ID# 115030042811Ref. 492342

27-Nov-2015 27-Nov-2015 000CHQD153310310 CQH 1SSD TO TSANG PA 23,961.00DUNG DOK LHEKBYBTFEC-DONARPROJECT Ref. 492343

27-Nov-2015 27-Nov-2015 0001446153310001 thinley wangdi Ref. 492341 9,100.06

Page No. 1

BHUTAN NATIONAL BANK LIMITEDturfe «at ionslipeBan


03-Dec-2015 03-Dec-2015 000CHBK153370007 CASH-CHEOUE 50.00CHARGES

05-Dec-2015 05-Dec-2015 000CHQD153390090 CHQ ISUED TO BHANU 94,000.00]BHAKTA CHHETRI BYBTFEG-DONAR PROJECTIRef. 492345

07-Dec-2015 07-Dec-2015 0001615153410003 RRCO Ref._49232620.007-Dec-2015 07-Dec-2015 0001615153410005 RRCO Ref. 492334 1500.0007-Dec-2015 07-Dec-201R5 01653407 R i 349007-Dec-2015 07-Dec-2015 0001615153410011 R RCO Ref. 492337 1 1470907ý-Dec-2015 07-Dec-2015__ b661615153410017 R RCO Ret. 49234 1,14.0 - .

18-Dec-2015 18-Dec-2015 001CWA0153520091 CASH PAID TO GEMBO 2,000.00TSHERINGID11303001420 Ref.492350

18-Dec-2015 18-Dec-2015 000CWA0153520120 CASH PAID TO GEMBO 7,753.00TSHERING

11303001420 Ref,.492347

21 -Dec-5 - 1-Dec-20¯5¯¯¯¯¯¯¯¯0¯ i 53550021THINLEY WANGDI Ref. 9,100.00492349

23-Dec-2015 23-Dec-2015 000CWA0153570027 CASH PAID TOTHINLEY1 14,700.00WANGDI, ID#11503004281 Ref. 087201

Page No. 1

BHUTAN NATIONAL BANK LIMITEDYour&gationship <Banft


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04-Jan-2016 04-Jan-2016 0001615160040064 RRCO Ret. 492348 1,147.00

04-Jan-2016 04-Jan-2016 0001615160040066 RRCO Ret. 492346 31,00.00

04-Jan-2016- 0-Jn-01 0001615160040071 RRCO Ret. 087202 3o0000'

30-Jan-2016 30-Jan-2016 000CWA0160300063 CASH PAID TOKINZANG 7,753.00LHAMO ID#11508000646Ret, 087204

Page No. 1

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01-Feb-2046 01-Feb-2016 000CHOD160320100 CHQ ISSDTO DRUK AIR 39,139.00CORPORATION LTD. BYBTFEC-DONAR PROJECTIRef. 087208

04-Feb-2016 04-Feb-2016 000FWA0160350003 USD 2700 @ 69.25 PAID 186,975.00TO THINLEY WANGDI ID#11503004281 AS PER LT#BNBL/TH/GEN-REL/151615!254 DT. 04-02-2016 Ret

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04-Feb-2016 04-Feb-2016 0001446160350003 THINLEY WANGDI Ref. 9,100.00087206

05-Feb-2016 05-Feb-2016 OOOFTFO160360011 TT TO G-TEC 65,429.661COMPUTER EDUCATIONCENTRE (PTE LTD)SINGAPORE BYBTFEC-DONARPROJECT, THIMPHU [email protected], CHARGESNU:330.20 DTD03.02.2016

12-Feb-2016 12-Feb-2016 000CWA0160430067 CASH PAID TO PASANG 2,000.00AC5000001857020 Ref.087207

19-Feb-2016 19-Feb-2016 0001446160500013 DRUK LINK 594,281.80TECHNOOGIES Ref.

- .. -,.- ~.08720920-Feb-2016 20-Feb¯2016 000CHQD160510057 CHO SSD TO RÅ ¯-873.00

DOEN ASSOCIATES BYBTFEC-DONAR PROJECTRef. 087210

25-Feb-2016 25-Feb-2016 000CWA0160560306 CASH PAID TO THINLEY 7,753.00WANGDI ID#11503004281Ref. 087213

25-Feb-2016 25-Feb-2016 000CWA0160560307 CASH PAID TO THINLEY 2,000.00WANGDI ID#11503004281Ref. 087216

É 29-Feb-2016 29-Feb-2016 0001446160600022 THINLEY WANGDI 9,100.00,110JC0000265 Ref.087215

Page No. 1

BHUTAN NATIONAL BANK LIMITEDlYourefationsliipjank


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03-Mar-2016 03-Mar-2016 0001615160630014 RRCO Ref. 087205 1,147.0003-Mar-20.16 03-Mar-2016 0001615160630016 RRCO THIMPHU Ref. 1,147.00

08721403-Mar-2016 03-Mar-2016 0001615160630017 RRCO THiMPHU Ref. 1,252.00

08721109-Mar-2016 09-Mar-2016 000CWA0160690053 CHO WITHDRAWN BY 1,300.00 _

TSHERING YANGDONCID#11702000960 Ref.

______________ ~087217 ______ ______

17-Mar-2016 17-Mar-2016 OOOFWA0160770007 USD4520 @ 68.35PAID I08942.0TO PEMA WANGMO, ID11502000052,M#77966199 & RINCHENWANGMO,1D10604000090,M#17819540(DSA) AS PERBTFEC LT# 322 VIDEBNBL/TH/GEN-REL/6251Ref. BTFEC/FIN-4A/322

17-Mar-2016 17-Mar-2016 000FTF0160770007 TT TO PLUS COMPUTER 230,295.27COLLEGE FOUNDATIONINC. PHILIPPINE BYBTFEC-DONARPROJECT, THIMPHU FORUSD [email protected],CHARGES NU:659.27

17-Mar-2016 17-Mar-2016 0001610160770034 YOEGARPIC Ref. 087212 1 2,920.4022-Mar-2016 22-Mar-2016 OOOCWA01 60820192 PAID TO THINLEY 2,000.00

WANGDI CID #11503004281 Ref. 087222

22-Mar-2016 22-Mar-2016 000CWA0160820195 PAID TO THINLEY 2,600.00WANGDI CID# I

11503004281 Ref. 08722322-Mai-2016 22-Mar-2016 000CWA0160820198 PAID TO THINLEY 7,753.00

WANGDI CID #11503004281 Ref. 087218

23-Mar-2016 23-Mar-2016 0001610160830010 THINLEY WANGDI Ref, 9,100.00087221

30-Mar-2016 30-Mai-2016 000CWA0160900045 CASH PAID TO PASANG ¯¯6,50 00AC5000001857020 Ref.087224

Page No. 1

BHUTAN NATIONAL BANK LIMITED__ flMur Åge(ationsIiip <Jank


03-May-2016 03-May-2016 000CHQD161240070 CHQ.ISS BY 1,862.80BTFEC-DONAR PROJEGTITO TSENDEN TRAVELSERVICE Ref. 087228 _

05-May-2016 05-May-2016 O0CHQD161260259 CHO 1SS BY 261,669.00BTFEC-DONAR PROJECTýTOTRADOENASSOCIATES Ref. 087236

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25-May-2016 25-May-2016 000CHQD1 61460194 CHQ ISSD TO KHANG 79,236.00RESIDENCY BYBTFEC-DONAR PROJECTiRef. 087239 i

26-May-2016 26-May-2016 000CWA0161470177 CASH PAID TOPASANG i 2,000.00AC 5000001857020 Ref.

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Page No. 1

BHUTAN NATIONAL BANK LIMITED


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20-Jun-2016 20-Jun-2016 000FTF0161720006 iTTTO IUCN, 39,970.49SWITZERLAND BYBTFEC-DONARPROJECT, THIMPHU [email protected] NU:300.00 DTDý07,06.2016 _

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23-Jun-2016 23-Jun-2016 00CHD675154tCHO ISSUEDTO 7,753.00THINLEY WANGDI BYBTFEC-DONAR PROJECTRef. 087249 l

23-Jun-2016 23,Jun-2016 000CHQD161750156 CHQ ISSUED TO 2,000.00THINLEY WANGDI BYBTFEC-DONAR PROJECT

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24-Jun-2016 24-Jun-2016 OOOFWA0161 760004 USD 4120 ISSUED TO 282,632.00 -

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24-Jun-2016 D24-,Jun¯2016 0CHQD1617601¯2 CHQ ISS TO UDUMWARA 247,383.36RESORT,PARO AC BYBTFEC-DONARPROJECT,TPHU AC Ref.087247

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27-Jun-2016 27-Jun-2016 000CWA0161790163 CHQ WITHDRAWN BY 1,025.00KARMA YANGZOM CID#11602001823 Ref. 229259

28-Jun-2016 28"¯un-2016 000144616180031 ATLAS TRAVEL 192,045.00SERVICES Ref. 22925B

Page No. 1

12127/2016 Bhutan Trust Fund Mail - IUFR for SFBCNRM Project for the Period July-31 December 2015.

F'Rinchen Wangmo <[email protected]>

IUFR for SFBCNRM Project for the Period July-31 December 2015.

Nathalie Weier Johnson <[email protected]> Wed, Mar 2, 2016 at 7:55 PMTo: Rinchen Wangmo <[email protected]>Cc: Savinay Grover <[email protected]>, Sulochana Nepali <[email protected]>, Tanvir Hossain<thossai [email protected]>, "Dr. Pema Choephyel" <[email protected]>, Singye Doji<[email protected]>, "[email protected]" <[email protected]>, Sonam Wangmo<[email protected]>

Dear Ms. Rinchen,

We have reviewed the IUFRs sent by you for the above period and find the same acceptable.

You may submit disbursement claims for the following amounts as reported in the IUFR:

BTN

Amount to be advanced 27,814,452.89

Amount to be documented 11,892,640.34

We request you to provide audit report for the expenditure related to Jigme Doji National Park for FY 2013-14 failingwhich we shall reduce the expenditure related to this park from the next IUFR.

While submitting your claims to the Loan Department, Chennai, please ensure to enclose the attached IUFR andbank statements.

In addition please move the Preparation of Operating Manual (Procurement & Financial Sections)- QCBS

E to post review.

Best regards,

Nathalie

From: Rinchen Wangmo [mailto:[email protected]]Sent: Thursday, February 18, 2016 10:01 AMTo: Nathalie Weier JohnsonCc: Savinay Grover; Sulochana Nepali; Tanvir Hossain; Dr. Pema Choephyel; Singye Dorji;[email protected]; Sonam WangmoSubject: IUFR for SFBCNRM Project for the Period July-31 December 2015.

Dear Nathalie,

httDs://mail.cooale.com/maillul0/?ui=2&ik=63149e7842&view=ot&a=nichnson%/40worldbank.ora&as=true&search=auerv&rnsa=153379cbde88a92e&siml... 1/2

1212712016 Bhutan Trust Fund Mail - RE: lUFR for SFBCNRM Project for the period January- 30th June 2016

Rinchen Wangmo <[email protected]>

RE: IUFR for SFBCNRM Project for the period January- 30th June 2016

Nathalie Weier Johnson <[email protected]> Thu, Sep 1, 2016 at 3:48 PMTo: Rinchen Wangmo <[email protected]>, Savinay Grover <[email protected]>Cc: "Dr. Pema Choephyel" <pema.choephyel@bhutantrustfund. bt>. Singye Doji <[email protected]>,Sulochana Nepali <[email protected]>, Tanvir Hossain <[email protected]>, Sonam Wangmo<[email protected]>, Ugyen Lhendup <[email protected]>

Dear Ms. Rinchen,

We have reviewed the IUFRs sent by you for the above period and find the same acceptable.

You may submit disbursement claims for the following amounts as reported in the IUFR:

BTN

Amount to be advanced 23,687,843.24

Amount to be documented 52,158,402.16

While submitting your claims to the Loan Department, Chennai, please ensure to enclose the attached IUFR and bank statements.

Best regards,

Nathalie

From: Rinchen Wangmo [mailto:[email protected]]Sent: Monday, August 15, 2016 4:48 AMTo: Savinay GroverCc: Nathalie Weier Johnson; Dr. Pema Choephyel; Singye Dorji; Sulochana Nepali; Tanvir Hossain; SonamWangmo; Ugyen LhendupSubject: Re: IUFR for SFBCNRM Project for the period January- 30th June 2016

[Quoted text hidden]

httos://mail,ocale.com lmaillul/?ui=2&ik=63149e7642&view=0t&a=nichnson%40worldbank.ora&as=true&search=ouerv&msa=156e526481011dd5&siml... 11

D . i 00975-2-339863Bh tnTrust Fund O10075-2-39863/6

f for Environmental Conservation a wwwbhutantuund.bt

BTFEC/FIN-13A/16-17/ § 30th November 2016

The Auditor General of BhutanRoyal Audit Authority-Bhutan Integrity HouseKawajangsa,

Re: Management Assertion Letter

Dasho,

This assertion letter is provided in connection with your audit of the financial statements ofthe GEF TF014705: Sustainable Financing for Biodiversity Conservation and NaturalResource Management Project for the 12-month period ended 30 June 2016. Weacknowledge our responsibility for the fair presentation of the financial statements inaccordance with the cash basis of accounting followed by the Royal Government ofBhutan, and we confirm, to the best of our knowledge and belief, the followingrepresentations made to you during your audit:

* The project financial statements are free of material misstatements, includingOmissions.

* Project funds have been used for the purposes for which they were provided.* Project expenditures are eligible for financing under the Grant agreement.* There have been no irregularities involving management or'employees who have a

significant role in internal control or that could have a material effect on theproject financial statements.

* We have made available to you all books of account and supportingdocumentation relating to the project.

* The project has complied with the conditions of all relevant legal agreements, includingthe Grant and Project Document.

(Project Manager)

DirectorBhutan Tru or

lEnvironmental C se

(Head of Finance Divisi

Acting Chief Finance OfficerBhutan Trust Fund for

Environmental Conservan

A

tt

AUDIT FINDINGS

AUDIT FINDINGS ON THE ACCOUNTS AND OPERATIONS OF THE WORLDBANK FUNDED "SUSTAINABLE FINANCING FOR BIODIVERSITYCONSERVATION AND NATURAL RESOURCES MANAGEMENT" PROJECTFOR THE PERIOD 1 ST JULY 2015 TO 3 0 "H JUNE 2016

PART I: ACHIEVEMENTS

Some of the major achievements of the project are listed below:

Component 2: Improving Conservation Management of the High Altitude Northern Areas

(HANAS) Landscape in. Bhutan (including protected areas and associated methods, forests

and agricultural systems)

> Construction of Three home-stay in Sephu and an eco-lodge in Laya Gewogs

completed.

> Sephu Gewog environmental conservation committee formed.

> Completion of Park Range office construction in Laya.

> Constructed two unit toilets at Lau transit camp and a separate kitchen.

> Twenty Four BWS staff trained in SMART patrolling.

> Four sets of mini power tillers (Kama tiller) and Five Nos. of paddy thresher machine

supplied to Bumdeling community.

> Maintenance and renovation of Eight kilometer Neka Chu to Metab Chu trail

completed.> Procurement of a Four wheel drive vehicle for the project office.

> The installation of a feed block machine in Kabesa, Punakha is complete.

> 21.5 acres of Oat fields developed.> Four officials trained in Nonthabur, Thailand to study Ecotourism & Wildlife

Management.

> Gene Bank technical staff from NBC trained on PGRFA conservation from NBPGR,

New Delhi.> Conducted a Five day study visit to Bangkok Forest herbarium.

> Carried out the specimen consultations of Bhutanese plant specimens housed in

project herbaria of Marburg and Freiburg in Germany.

Component 3: Capacity Building for mainstreaming of conservation and sustainable forest

and natural resource managenent approaches in national policies, strategies and plans

> Planning and training workshop on data management, field survey prey, base survey

and camera trap conducted.

> The third national parks conference titled, 'Paradigm Shift in Protected Areas

Management System in Bhutan conducted.

APPENDICES

A: PROFILE

Project Name: World Bank Project "Sustainable financing for biodiversity conservation andnatural resource management "TF/Grant No. TF014705 (P.127490)

Project amount: USD 4.08 millionProject Duration: 4111 November 2013 to 3 rd November 2018

Objective

The objective of the Grant is to assist the Bhutan Trust Fund for Environment Conservation

(BTFEC) in improving the operational effectiveness and sustainability of the BTFEC.

Activities and Budget

Following are the three components under the GEF - The World Bank financing:

Component Expdt. Type Grant Cumulative Expdt. (%)Amount (USS Expdt. (US$ in

in million) million)

Component 1: Enhancing the Type -1 0.800 312,934 39operational effectiveness andsustainability of BTFEC

Component 2: Improvingconservation management of thehigh altitude northern areas Type -2 2.840 956,042 34(HANAS) landscape in Bhutanincluding protected areas andassociated methods, forests andagricultural systems)

Component 3: Capacity buildingfor mainstreaming of conservationand sustainable forest and natural Type - 2 0.440 2,201 0.5resource management approachesin national policies, strategies andplans

Total Project Grant 4.080 1,271,177 31

B: OBJECTIVES OF AUDITING

The objective of the audit is to ascertain and report:

a) Whether the financial statements fairly reflect the operations of the Project for the

financial years 2015-206;b) Whether the Project has complied with the laws, policies, rules and regulations issued

by the government from time to time;c) Whether the fund acquired were utilized efficiently and effectively for intended

purposes and to check the legality, regularity and propriety of the expenditure;

d) Whether adequate and effective internal control system has been instituted; and

e) Whether planned activities were carried out and achieved as per the Annual Work

Plan.

C: AUDIT METHODOLOGY

a) Reviewing internal controls in place in the system;

b) Inspection and examination of the records, documents and statements;

c) Determining if the rules and regulations that are enforced have been complied with;

d) Seeking relevant information from knowledgeable person inside and outside the

organization;e) Checking the arithmetical accuracy of the accounting records; and

f Conducting the physical verification of materials and stores.

c date 4 9 - world bankdocuments.worldbank.org/curated/en/750231523473124339/pdf/124… ·...

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