Ai 7-t/k Tq.t4U sfvNGRBPNMCG/2018-1W9/11-tr0 fk;*1 03ooq 0 ..

Sh. U.P. Singh,Secretary to the Government of India,Ministry of Water Resources,River Development & Ganga Rejuvenation,Shram Shakti Bhawan,Rafi Marg,New De-hi-1 10 001

fW U W WIT 1 F4F Wq' qR4M1 "National Ganga River Basin ProjectNGRBP" IDA Credit No. 4955-IN and IBRD Loan No. 8065-INConsolidated Certificate (except Uttrakhand SPMG) for the year 2017-18.

3TI#EIfi Th 4 T1 W41Ef P1f Mt i-il "National Ganga River Basin

Project NGRBP" IDA Credit No. 4955-IN and IBRD Loan No. 8065-IN" for the year

2018-19 t 4 W[lff (except SPMG Uttrakhand) 3Tclt W

This issues with the approval of DGA.

. The Executive Director (Finance), National Mission for Clean Ganga,MoWR,RD&GR, t Floor, Major Dhyan Chand National Stadium, India Gate,New Delhi-110002

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4R? -110002DIRECTOR GENERAL OF AUDITSCIENTIFIC DEPARTMENTSA.G.C.R. BUILDING, LP. ESTATENEW DELHI-110 002

Report of the Comptroller and Auditor General of India

To

The Secretary to the Government of IndiaDepartment of Water Resources, River Development and Ganga Rejuvenation.Shram Shakti Rhawan,Rafi Marg, New Delhi- 110001

Report on the Project Financial Statement:

We have audited the accompanying financial statements of the "National Ganga River Basin

Project (NGRBP)" financed under World Bank Loan No. 8065 and IDA Credit No. 4955-IN

which comprises the Statement of Sources and Application of Funds and the Reconciliation of

Claims to Total Application of Funds for the year ended 3 1' March 2019. These statements are

the responsibilities of the Project's management. Our responsibility is to express an opinion on

the accompanying financial statement 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 statement. 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

application of funds of "National Ganga River Basin Project (NGRBP)" for the year ended

3 P't March 2019 in accordance with Government of India accounting standards with respect to

National Mission for Clean Ganga (NMCG) New Delhi, Statement Project Management Group

(SPMG), Jharkhand: SPMG, Bihar; SPMG, Uttar-Pradesh; and SPMG, West Bengal. The

expenditure made by SPMG, Uttrakhand could not be verified,

TR9M / Phone : +91-11-23403652, 23403650 #i / Fax : +91-11-23702353

In addition, in our opinion, (a) with respect to the Statement of Expenditure, adequate

supporting documents has been maintained to support claims to the World Bank for

reimbursement of expenditure incurred during 2018-19 (total central share received by NMCG

Rs. 83371.68 lakh against which an expenditure of Rs. 83371.68 lakh was incurred under the

project). And (b) except for ineligible expenditure of Rs. 4700.02 lakh as detailed in the audit

observations appended to the audit report, expenditure of Rs. 78671.66 latch are eligible for

financing under the Loan/Credit Agreement (after application of disbursement percentage i.e.

70/100%).

During the course of audit, Statement of Expenditure/Financial statement amounting to Rs.

106169.61 lach and the connected documents were examined which can be relied upon to

support reimbursement of Rs. 78671.66 lakh under the Loan/Credit Agreement, as per the

'Annexure'.

This report is issued without prejudice to CAG's right to incorporate the audit observations in

the Report of CAG of India for being laid before Parliament.

Director ene I of AuditScientific Departments

Place: New DelhiDate: 3 o t 1 I 1 0

(Statement - B)

Details of disallowances made from the expenditure incurred for "National Ganga RiverBasin Project" Cr. No. 4955-IN and Loan No. 8065-IN for the year 2018-19

(Central Share Only)

(Re. in lakh)

Unit Office Reasons for disallowance Amount disallowed

NMCG, New As per the world bank guidelines for selection of 119.82Delhi consultants the borrower i.e. NMCG should first call

the expression of interest from, the firms, shortlist 6firms, shortlist should normally comprise consultantof same category with similar business objectives,corporate capacities, experience and field ofexpertise. However, NMCG violated the aboveguidelines and GFR 2017 and during 2018-19appointed 12 consultants on nomination basis undWorld bank aided project. NMCG paid total salaryof Rs.1 1982482 during 2018-19 which was irregular.Payment of pending rent to MTNL building, CGO 20.28Complex, IN. Delhi after vacating the premises. BillNo.0010 dated 02.05.2018.Payment of previous year (December 2017, January 6799and March 2018) to M/s McCann Erickson (India)Pvt. Ltd. for retainership fee (Bill No.0030 dated23,07.2018)Payment to M/s. National Insurance Company Ltd. 9.15for Mediclaim Policy ofN1MCG Staff (Bill NoM046dated 10.09.2018)Advance payment of printing of Wall and Table 2.44Calendars and Diaries from EAP fund (World BankAccount) (EAP Bill No.0077 dated 14,01.2019) andremaining/balance amount Rs.8,09,200 paid to NGPAccount (NGP 938 dated 13.03.2019)

NMCG, New The expenditure of TA/DA should have been bookedDelhi in PIAS (Pollution Inventorization Assessment and

(through Surveillance) not related to World Bank ProjectCPCB) Double payment of TAIDA on two different tours to 0.02

the same Scientist of CPCB.CPCB paid Rs.245389 from this account to Civil 2.45work on 29.06.19 and Rs. 593075 was again paid tothe Contractor (M/s Girish Kumar) which includesRs. 245389 on 20.09.2018. Thus Rs.245389 waspaid twice.Ms Minal Yadav was allocated work relating to other 3.50than World Bank project vide Order no AC-101!10/ACO/2016/1168 dt.07.09.2018 but paid asalary of Rs.50000 pm/- (from September 2018 toMarch 2019) from world bank project.

SPMG, Bihar As per Annexure - X 580.59

Inadmissible Centage 2276.88

SPMG, Temporary Imprest for staff vendor and O&M 12.97Uttar-Pradesh sewer project charged as expenditure.

Labour Cess and Centages not qualified for 1602.20reimibursement

SPMG, Inadmissible expenditure not related to EAP 119West Bengal

Total Rs. 4700.02

Deputy Director(Environmaent Audit)

(Statement - A)

Stateient of Exenditure for Worid Bank Aided Project "National Ganga River Basin Froect"

Cr. No. 4955-IN and Loan No. 8065-IN for the year 2018-19

(Rs. in lakh)

s. Nne Total Actual EAP fExpenditu Expenditure Percentage Amount

No. of the Amount as expenditure CnitraE re admitted in adiissible i reimbursement

Ageney per SOE venfled in Share disallowed Audit as per

Audk (70/100) in Audit agreement

Per cent

() () (3) (4) (5) ()(7) (8) (9)

1. NMCG, 2250.25 2254.69 2250.25 226.19 2024.06 100% 2024.06New (100%)

_ _ Delhi _ _ _ ____

2. SPMG, 5468.47 5468.47 3979.86 0.00 3979.86 100% 3979.86

d (4962.04 (3473.73@70pc @70 pc

506.43 @ 506.43100 pc) @100 pc)

3. SPMG, 52282.08 52282.10 39288.06 2857.47 36430.59 100% 36430.59Bihar

(35723.86 (25006.707Opo @ 70 pc (580.9

14281.36 @ 14281.36 2276.88

100 pc @ 10 0 pc)

2276.88 @ Centage)Centage)

tSPMG 27717.68 27717.68 19402.38 1615.17 17787.21 100% 17787.21Uttar-

Pradesh (@70 pc)

) PMQ 18451.13 i 18451.3 18451.13 1.19 18449.94 100% 18449.94West (@00

Bengal pc)

1Total 106169.61 106174.07 8337L68 470002L 867L66 100% 78671.66,

Depu Direetor(Environment Audit)