Annexure 23

beneficiary contribution  held in bank accounts at the DDRCS level will be done by  Chartered Accountants to be  contracted by PCU for each region taken on contractual basis as per selection criteria agreed with the World Bank.
3) The fund flow for the project is attached in Annexure 1
4) The accounting centers for the project is attached in Annexure 2.

II. External Audit:
      The essence of the World Bank audit policy is to ensure that the bank receives adequate, independent, professional, audit assurance that the proceeds of World Bank loan were used for the purposes intended, that the execution of work and management reports are free from material mismanagement and that terms of the loan agreement are complied with in all material respects.
The auditor should discuss the audit findings with the head of the agency audited before the audit findings are finalised..
  1) Objectives :
The objective of the external audit is as under
 a) To enable the auditor to express a professional opinion as to whether the projects financial statement presents fairly, a true picture of the sources and application of the project funds.
b)   The funds are utilized for the purpose for which they were provided and expenditure shown are eligible for financing under the relevant loan or credit agreement.
c)   In addition where applicable the auditor will express a professional opinion as to whether the IUFRs submitted by the project management may be relied upon, to support any applications for withdrawal of funds from the designated account and whether adequate supporting documentation has been maintained to support claims made by project management for reimbursement for expenditure incurred. 
The audit report would cover the entire project i.e. a sources and application of funds by the concerned agencies The audit would also cover all consultancies or other contracts that may be entered into by

Dept/Cell: 
Finance