Final Fiduciary Systems Assessment - Shimla-Himachal Pradesh Water Supply and Sewerage Services Improvement Program (PforR) - P174732 (English)

The conclusion of the FSA is that the systems are adequate for achievement of the Program objectives. [...] The main value addition of the GoHP and the World Bank partnership revolves around the following points: (a) the Program builds on the outcomes of the earlier engagements through the PEFA and the NLTA assessments, which provide a basis for scaling up the efforts undertaken so far; (b) the state sees the World Bank as a strategic partner and adviser in scaling up its PFM reform initiatives; (c) the [...] The key risks to the development outcomes are the non-availability of a chartered accountant heading the finance function, low frequency of internal audit (presently annual), functionality and implementation gaps in the billing and payments software, and the absence of a nuanced system of costing. [...] Further, the task of compiling the final accounts, being the internal responsibility of the SJPNL, must not be assigned to the internal auditor. [...] To meet the requirements under the World Bank loan, the auditors shall supplement the audit report with a certification of the expenditure made on the Program as agreed with the World Bank (also see Annex 2 of this FSA) which shall be a subset of the overall activities of the SJPNL.