World Bank Document

Size: px

Start display at page:

Download "World Bank Document"

妙傅
5 years ago
Views:

1 Public Disclosure Authorized Audit Office of Xinjiang Uygur Autonomous Region of the People s Republic of China Public Disclosure Authorized Public Disclosure Authorized Audit Report XINJIANG AUDIT REPORT2016NO.34 Project Name: Xinjiang Yining Urban Transport Improvement Project Financed by the World Bank 8166CN Loan No. : 8166CN Public Disclosure Authorized : Project Entity: World Bank financed Project Management Office of Yining Municipal Construction Bureau 2015 Accounting Year2015 1

2 Contents 1 I.Auditor s Opinion II. Financial Statements and Notes to the Financial Statements i.balance Sheet ii.summary of Sources and Uses of Funds by Project Component iii.statement of Implementation of Loan Agreement iv.special Account Statement v.notes to the Financial Statements III.Audit Findings and Recommendations

5 I. Auditor s Opinion Auditor s Opinion World Bank financed Project Management Office of Yining Municipal Construction Bureau: We have audited the special purpose financial statements (from page 6 to page 17) of Xinjiang Yining Urban Transport Improvement Project financed by the World Bank, which comprise the Balance Sheet as of Dec. 31, 2015, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan Agreement for the year then ended, and Notes to the Financial Statement. Project Entity and Autonomous Region Provincial Finance Department's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and Uses of Funds by Project Component and the Statement of Implementation of Loan Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Autonomous Region Finance Department, which includes: i. Preparing and fair presenting the accompanying financial statements in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement; ii. Designing, implementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Government Auditing Standards of the People s Republic of China and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entities preparation and fair 3

6 presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is appropriate and sufficient to provide a basis for our audit opinion. Auditor s Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Xinjiang Yining Urban Transport Improvement Project financed by the World Bank as of December 31, 2015, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the special account for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement. Other Matter We also examined the withdrawal application from N0.7 to N0.8 and the attached documents submitted to the World Bank during the period. In our opinion, the withdrawal application and the attached documents complies with the project loan agreement and can serve as basis for loan withdrawal. The audit report consists of the Auditor s Opinion and two more parts hereinafter: Financial Statements and Notes to the Financial Statements, Audit Findings and Recommendations. Audit Office of Xinjiang Uygur Autonomous Region, the People s Republic of China May 30,2016 4

7 Address: No. 186 Jianshe Road, Urumqi, Xinjiang Uygur Autonomous RegionP. R. China Postcode: Tel : Fax: The English translation is for the convenience of report users; please take the Chinese audit report as the only official version. 5

8 . Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET (As of December 31, 2015) Project Name: Xinjiang Yining Urban Transport Improvement Project Financed by the World Bank Prepared by: World Bank Financed Project Management Office of Yining Municipal Construction Bureau Currency Unit: RMB Yuan Application of Fund Line No. Beginning Balance Ending Balance Sources of Fund Lin e Beginning Balance Ending Balance 370,556, ,080, ,908, ,458, Total Project Expenditures Total Project Appropriation Funds Project Capital and Capital Fixed Assets Transferred Surplus Construction Expenditures to be Disposed Including: Grants 271,737, ,701, Investments Transferred-out Total Project Loan 370,556, ,080, Construction in Progress Total Project Loan 271,737, ,701, ,737, ,701, Investment Loan Receivable Including:World Bank Investment Loan Receivable - Including: IDA - 271,737, ,701, Appropriation of Investment Loan IBRD Including: Appropriation of World Bank Investment Loan - Technical Cooperation Equipment 20,096, ,195, Co-Financing Including: Equipment Losses in Suspense Domestic Loan 77,831, ,513, Total Cash and Bank Other Loan to be continued 6

9 77,831, ,513, Cash in Bank Appropriation of Investment oan 61,190, ,989, Including: Special Account World Bank Loan Cash on Hand - Bond Fund Total Prepaid and 28,055, ,306, Construction Receivable Expenditures to be Offset - Including: World Bank Loan Interest Total Payable Receivable 26,650, ,556, World Bank Loan World Bank Loan Interest - Commitment Fee Receivable Payable - World Bank loan Commitment World Bank Loan Service-Fee Receivable Fee Payable - Marketable Securities Including:World Bank Loan Service Fee Payable , Total Fixed Assets Other Payables - Fixed Assets, Cost Appropriation of Fund - 243, , Less: Depreciation Accumulated Fixed Assets, Net Disposal of Fixed Assets Retained Earnings Fixed Assets Losses in Suspense Total Application of Fund 496,540, ,096, Total Sources of Fund 496,540, ,096,

10 ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT (For the period ended December 31, 2015 Project Name: Xinjiang Yining Urban Transport Improvement Project Financed by the World Bank Prepared by: Construction Bureau of Yining City Project Management Office Currency Unit: RMB Yuan Current Period Cumulative Current Period Budget Current period Actual Current Period % completed Life of PAD Cumulative Actual Cumulative % completed Total Sources of Funds 321,458, ,513, % 1,323,203, ,160, %. World Bank Loan 204,324, ,963, % 635, 000, ,701, %. Counterpart Financing 117,134, ,550, % 688,203, ,458, % 1. Center Government Special Fund _ 2. Regional Counterpart 3. District Counterpart 4. County Counterpart 117,134, ,550, % 688, 203, ,458, % Total Application of Funds 321,458, ,524, % 1, 323,203, ,080, % 1. Civil Works 234,077, ,239, % 907, 739, ,613, % 2. Equipment and Matereals 83,374, ,044, % 246,161, ,726, % 3. Institutional Strengthen Building and Project Training 4 Interest during construction and 3,913, ,236, % 141, 055, ,213, % 93, , % 28,246, ,627, % 5. Exchange gains and losses 14,910, ,898, Difference -16,010, ,079, Change in Receivable 2. Change in Payable 3. Change in Cash and Bank 4. Other 4,250, ,906, ,318, ,036, ,306, ,556, ,513, ,815,

11 SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT (For the period ended December 31, 2015 Project Name: Xinjiang Yining Urban Transport Improvement Project Financed by the World Bank Prepared by: Construction Bureau of Yining City Project Management Office Currency Unit: RMB Yuan (Project Expenditure) Assets Transferred Project Construction Component Cumulative Fixed Current Intangible Deferred Work in Progress Expenditures Investments Amount Asset Asset Asset Asset to be disposed 378,340, ,340, CivilWorks 231,613, ,613, Equipment and Mateuials 146,726, ,726, Public transport infrastructure and equipment 2.1 Depot,station and civil works 2.2 Equipment 3 Traffic control and road safety Civil works 3.2 Equipment 4. Institutional Strengthen Building and Project Training 108,213, ,213, Interest during construction and 1,627, ,627, Exchange gains and losses 13,898, ,898, Total 502,080, ,080,

12 iii. Statement of Implementation of Loan Agreement STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT (For the period ended December 31, 2015 Project Name: Xinjiang Yining Urban Transport Improvement Project by the World Bank / Prepared by:world Bank Financed Project Management Office of Yining Municipal Construction Bureau Currency Unit: USD/ RMB Yuan Loan Amount Current-period Withdrawals Cumulative withdrawals Category USD USD RMB USD RMB A. Works for the Project 59,270, ,335, ,151, ,516, ,717, B. Goods,Consultants,Services,Non-consunlting Services,Training,Study Tours and Workshops,and Incremental Operating Costs 36,280, ,033, ,176, ,011, ,424, C. Interest during implementation 4,200, D. Front-end Fee 250, , ,623, E. Service Charges F. Balance of imprest Account 10,000, ,936, Total 100,000, ,368, ,328, ,777, ,701,

13 iv. Special Account Statement SPECIAL ACCOUNT STATEMENT (For the period ended December 31, 2015 Project Name:Xinjiang Yining Urban Transport Improvement Project CN-8166 Loan No. CN-8166 Prepared by: The Finance Department of Xinjiang Uygur Autonomous Region Depository Bank: ICBC Branch in Xinjiang Region Account No. : Currency: USD Beginning Balance Add: Total Amount Deposited by World Bank Total Interest Earned this Period if )deposited in Special Account Amount 10,005, ,368, , Total Amount Refunded to Cover Ineligible Expenditures Deduct Total Amount Withdrawn this Period Total Service Charges if not Included in Above Amount Withdrawn Ending Balance 10,368, ,008, Part B-Account Reconciliation Amount Advanced by World Bank 10,000, Deduct Total Amount Recovered by World Bank Outstanding Amount Advanced to the Special Account Ending Balance of Special Account Amount Claimed but not yet Credited at the End of this 10,000, ,008, Period Application No. Amount Amount Withdrawn but not yet Claimed Cumulative Service Charges(if not Included in Item 5 or 6) Interest Earned ( if Included in Special Account Total Advanced to Special Account accounted for at the End of this 8, ,000, Period 11

14 8166CN

15 ,080, ,613, ,726, ,213, ,627, ,898, ,513, ,989, ,306, ,458, ,203, ,458, % ,701, ,556,

16 , ,000, ,005, ,368, , ,368, ,008,

17 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The Loan No. of the WB-financed Xinjiang Yining Urban Transport Improvement Project is 8166-CN. The project is to improve transportation mobility of the central urban area in Yining City, and build a traffic pattern of safety, cleanliness and high efficiency in the selected new urban area for accessibility. The Project includes: (1) 25 roads planned to be built, total length of 72.39km, including 10 rebuilt roads of 30.38km and 15 newly-built roads of 42.01km. (2) Contents of public transport component include: construction of 1 bus hub, 1 bus intelligent dispatching center system and 3 bus terminals, and procurement of 250 buses. (3) Contents of transport management and road safety component includes: traffic monitoring system, regional traffic signal control system, and integrated traffic safety corridor work. (4) The component of institutional capacity building includes mainly: training, research and discussion of institutional capacity building, research and consultancy of relevant technologies etc. The Project Agreement was signed officially on July 13, 2012 and came into effect on Aug. 22, It is estimated to be closed by March 31, The planned total investment of the Project is RMB billion yuan, including WB loan of RMB 635 million yuan (equivalent to USD 100 million at exchange rate of 1:6.35), and local counterpart fund of Yining City RMB 688 million yuan. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of WB-financed Xinjiang Yining Urban Transport Improvement Project, as well as the Special Account financial statement by Autonomous Region Finance Department. 3. Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for the World Bank Financed Projects (Caijizi [2000] No.13) issued by the Ministry of Finance and the Notification about Distributing Financial Management Method of WB-financed Xinjiang Yining Urban Transport Improvement Project (Xincaiwai [2012] No.29) issued by Autonomous Region Finance Department. 3.2 In accounting practice, the calendar year is adopted as the fiscal year from January 1 to December

18 3.3 The accrual basis and the debit/credit double entry bookkeeping method are adopted. RMB is used as the recording currency of bookkeeping. 3.4 The exchange rate adopted in the financial statements was the exchange rate on December 31, 2015 of the People s Bank of China, which is USD1= RMB6.4936yuan. 4. Explanation of Subjects 4.1 Total Project expenditures The project expenditure as of Dec.31,2015was RMB502,080,949.69yuan, Of which: Civil works is RMB231,613,798.73yuan; Equipment and materials is RMB146,726,587.40yuan; Institutional strengthen building and project training is RMB 108,213,865.99yuan; Interest and fee during construction and front-end fee is RMB 1,627,976.17yuan; Exchanges gains and losses is RMB 13,898, yuan. 4.2 Cash and Bank On Dec. 31, 2015, the balance was RMB 73,513, yuan. And the funds in the Special Account were converted to RMB 64,989, yuan. 4.3 Prepaid and Receivable On Dec. 31, 2015, the balance of prepaid and receivable was RMB 32,306,606.64yuan,including mainly prepaid construction and installation fee. 4.4 Project Appropriation Funds The balance on December 31, 2015 was RMB 229,458,937.93yuan, which was the counterpart fund allocated by the People s Government of Yining City. The planned counterpart fund totals up RMB 688,203, yuan; on Dec. 31, 2015, the fulfilled counterpart fund was RMB 229,458,937.93yuan and 33.35% of total planned amount,. 4.5 Project Loan On December 31, 2015, the balance of project loan was RMB 355,701,339.25yuan. 4.6 Payable 16

19 The balance on Dec. 31, 2015 was RMB 31,556, yuan, mainly the quality assurance deposit and payables on equipment. 4.7 Retained Earnings The balance on Dec. 31, 2015 was RMB 326, yuan, mainly interest earned of bank deposit. 5. Special Account The Special Account of this project is set in a CCB Sub-branch directly under Xinjiang Branch of CCB, the account number of , and USD as currency unit. The initial Deposit of Special Account is USD10,000,000.00, the beginning balance of 2015 was USD10,005,098.83,the amount withdrawn was USD10,368,419.96, the interest earn is USD3, The ending balance was $10,008,

20 8, % 25.52% 2, %

21 III. Audit Findings and Recommendations Audit Findings and Recommendations In addition to performing the audit and expressing an opinion on the financial statements, we also make observations with respect to compliance with applicable provisions of state laws and regulations and the loan agreement of the relevant entities, its internal financial control, project management, project performance and the follow-up of previous recommendations during the project implementing process. We found the following issues: Issues on project management Delay of Project Progress. The road construction was not completed as planned due to the delay of land acquisition and house demolition.the completion of investment in road construction was only CNY80,239, in 2015,accounting for 34.28% of the annual investment plan and 25.52% of the total investment; The completion of investment in goods and equipment was only CNY29,045, in 2015,accounting for 34.84% of the annual investment plan. The above-mentioned situation did not comply with the annual investment plan of We suggest that Yining municipal government urge the related departments to speed up land acquisition and house demolition. The TPMO should speed up the construction progress and strive to make the project to produce benefits as soon as possible. Meanwhile, in making the annual investment plan the TPMO should fully consider the possible problems to be met in the project construction, ensuring the feasibility and practicability of the project implementation through timely problem-solving and scientific arrangement. The Followed-up of previous recommendations The auditor found that the retention of replenished fund by Yili Prefecture Finance Bureau was still not fully corrected. Yili Prefecture Finance Bureau and Yining Municipal Finance Bureau received replenishment fund of WB loan two times in 2015.The replenishment fund was not appropriated in a timely manner put in retention at least for 52 days. We suggest that the Finance Bureau of Xinjiang Autonomous Region urge Prefecture and Municipal Finance Bureaus to optimize payment procedures and improve fund efficiency. 19

审计署国外贷援款项目审计服务中心

审计署国外贷援款项目审计服务中心审计署国外贷援款项目审计服务中心 Audit Service Center of China National Audit Office for Foreign Loan and Assistance Projects 审计报告 Audit Report 审外中报 2015 28 号 AUDIT REPORT 2015 NO. 28 项目名称 : Project