Public Disclosure Authorized Sichuan Provincial Audit Office of the People's Republic of China Public Disclosure Authorized Audit Report )9k# [2018 ) 32 # SICHUAN AUDIT REPORT [2018I NO. 32 Public Disclosure Authorized Project name: Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank & #: 8472-CHA Loan No.: 8472-CHA Public Disclosure Authorized Project Entity: Guang'an Project Management Office 2017 Accounting Year: 2017
Contents I. A uditor's O p in ion... 3 It. Financial Statements and Notes to the Financial Statements...6.6 i. B alan ce S h eet... 6 ( )...8 ii. Summary of Sources and Uses of Funds by Project Component... 8 iii. Statement of Implementation of Loan Agreement...1 ( V9 ) f6#/r *P 4KA...13 iv. Designated Account Statement... 13 v. Notes to the Financial Statements... 18 III. Audit Findings and Recommendations... 26
一 审计师意见 审计师意见 世行贷款幼安项目领导小组办公室 : 我们审计了世界银行贷款川渝合作 ( 广安 ) 示范区基础设施建设项目 2017 年 12 月 31 日的资金平衡表及截至该日同年度的项目进度表 贷款协定执行情况表和指定账户报表等特定目的财务报表及财务报表附注 ( 第 3 页至第 14 页 ) ( 一 ) 项目执行单位及四川省财政厅对财务报表的责任 簖制上述财务报表中的资金平衡表 项目进度表及贷款协定执行情况表是你办的责任, 簖制指定账户报表是四川省财政厅的责任, 这种责任包括 : 1. 按照中国的会计准则 会计制度和本项目贷款协定的要求编制项目财务报表, 并佼其实现公允反映 ; 2. 设计 执行和维护必要的内部控制, 以使项目财务报表不存在由于舞弊或错误而导致的重大错报 ( 二 ) 审计责任 我们的责任是在执行审计工作的基础上对财务报表发表审计意见 我. 们按照中国国家审计准则和国际审计准则的规定执行了审计工作, 上述准则要求我们遵守审计职业要求, 计划和执行审计工作以对项目财务报表是否不存在重大错报获取合理保证 为获取有关财务报表金额和披露信息的有关证据, 我们实施了必要的审计程序 我们运用职业判断选择审计程序, 这些程序包括对由于舞弊或错误导致的财务报表重大错报风险的评估 在进行风险评估时, 为了设计恰当的审计程序, 我们考虑了与财务报表相关的内部控制, 但目的并非对 l
内部控制的有效性发表意见 审计工作还包括评价所选用会计政策的恰当性和作出会计估计的合理性, 以及评价财务报表的总体列报 我们相信, 我们获取的审计证据是适当的 充分的, 为发表审计意见提供了基础 ( 三 ) 审计意见 我们认为, 第一段所列财务报表在所有重大方面按照中国的会计准则 会计制度和本项目贷款协定的要求编制, 公允反映了世界银行贷款川渝合作 ( 幼安 ) 示范区基础设施建设项目 2017 年 12 月 31 日的财务状况及截至该日同年度的财务收支 项目执行和指定账户收支情况 ( 四 ) 其他事项 我们审查了本期内由四川省财政厅报送给世界银行的第 QF 一 20 1 701 号 QF 一 20 1 702 号 QF 一 20 1 704 号至 QF 一 20 1 707 号 QF 一 20 1 709 号 QF 一 20 1 7 10 号 LS 一 201704 号 LS 一 201705 号 LS 一 201708 号 LSZZ 一 201701 号 LSZZ 一 201702 号提款申请书及所附资料 我们认为, 这些资料均符合贷款协定的要求, 可以作为申请提款的依据 本审计师意见之后, 共同构成审计报告的还有两项内容 : 财务报表及财务报表附注和审计发现的问题及建议 一 中华人民共和国四川省审计厅 2018 一 6 月 19 日 地址 : 中国四川省成都市永兴巷 15 号邮政簖码 :610012 电话二 86 一 028 一 86522202 传真 :86 一 028 一 86522039
1. Auditor's Opinion Guang'an Project Management Office Auditor's Opinion We have audited the special purpose financial statements (from page 3 to page 14) of Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank, which comprise the Balance Sheet as of December 31, 2017, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan Agreement and the Designated Account Statement for the year then ended, and Notes to the Financial Statements. i. Project Entity and Sichuan 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 office, while the preparation of the Designated Account Statement is the responsibility of Sichuan Provincial Finance Department, which includes: 1. Preparing and fairly presenting the accompanying financial statements in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement; 2. Designing, implementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatement, whether due to fraud or error. ii. 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 Goverriment 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. 3
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 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. iii. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, the financial position of Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank as of December 31, 2017, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the designated account for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement. (IV)Other Matter We also examined withdrawal application No. QF-201701, No. QF-201702, No. QF-201704 to QF-201707, No. QF-201709, No. QF-201710, No. LS201704, No. LS-201705, No. LS-201708, No. LSZZ-201701, No. LSZZ-201702 and the attached documents submitted to the World Bank by Sichuan Provincial Department of Finance during the period. In our opinion, those documents comply 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 4
hereinafter: Financial Statements and Notes to the Financial Statements, Audit Findings and Recommendations. Sichuan Provincial Audit Office of the People's Republic of China June,2018 Address: No.15, Yong Xing Alley, Chengdu City, Sichuan Province, P.R. China Postcode: 610012 Tel.: 86-028-8652202 Fax: 86-028-86522039 5
II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCESHEET 2017 * 12 8 31 E (As of December 31, 2017) Project Name: Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project Financed by the World Bank Prepared by: Giang'an Pro ect Management Office Crrency Unit: RMB Yuan Application~f otfnd LneMTf J 1 s Appcation d No ne Beg B on ilance lnce EndinR ELme Balance Sources of und No Beginning Balance Ending Balance Total Project Expenditures 89,593,948 48 179,280,160 84 Total Project Appropriation 28 61,324,477 59 96,598,316 52 Funds Fixed Assets Transferred 2 0.00 000 Project Capital and Capital 29 0 00 000 Surplus Construction Expenditures to 3 0.00 0.00 30 000 000 be Disposed Including rants 3IvestmeTts Transferred-out 4 000 000 otal Project Loan 31 40.691,705 08 100,867,986 71 4 6E _f I 5 0a4kf.-R Construction in Progress 5 89,593,948 48 179,280,160,84 Total Project investment 32 40,691,705.08 100,867,986 71 Loan,illoa Investment Loan Receivable i.i.00 000 Foreign Loan 3 40,691,705.08 100,867.986 71 Including: World Bank 7 0.00 000 34 000 000 Investment Loan Receivable Including IDA Appropriation of Investment 8 0.00 000 X 7 35 40,691,705 08 100,867,986 71 Loan IBRD Including Appropriation of 9 0.00 0.00 Technical 36 0.00 0.00 World Bank Investment Loan Cooperation Equipment 000 0.00Fncin 37 0 00 000 4t~~~~o -- Fina4kncingfOK Including. Equipment Losses in I1 0.00 0.00 12) Ei 1 38 0.00 000 Suspense Domestic Loan _R "k ~~-,4FI it2,af4#r Total Cash and Bank 12 15,850,346.20 30,059,101.27 2.Other Loan 39 000 000 Cash in Bank 13 15,850,346.20 30.059,101 27 Appropriation of Investment 40 000 0.00 _.. _, _Loan Including Special Account 14 12,290,23524 27,715,34961 Including: World Bank Loan 41 000 00 Cash on Hand 15 000 0.00 42 000 000 1 I To be continued) 6
Total Prepaid and Receivable 16 2,031,277.86 8,028,991 69 Construction Expenditures 43 000 000 to be Offset Including World Bank Loan 17 000 000 44 5,456,017 45 19,893,145 87 [Ilteest eceiabletotal Payables [iteiest Recivable World Bank Loan WorldBan Loan Commrrument Fee I8 0 00 0 00 Including: World Bank Loan 45 0 00 0.00 Receivable Interest Payables i, k 71World Bank Loan World Bank Loan Service- 19 000 000 Comman Fe 46 000 0.00 Fee Receivable Commitment Fee Pavables Marktable Sctis 00 0 World Bank Loan Ser ice 47 00 0 00 Fee Payables Total Fixed Asets 21 o 00 0 00 48 to00 000 Total Other Payables F xed Assets. Cost 0u 00 Ä 00 49 000 Appropriation of Fund Less Accumulated 23 000 0 0 50 3372 42 8,804 70 Depreciation Retained Earnings 14J 1124 000 000 tt 00 0,0 Fixed Assets, Net Fixed Assets Pending Disposal -Ž5 0.00 000 0.00 0.00 ýk-j ý 526 0 00 0.00 0 00 0.00 Fixed Assets Losses in Suspense Total Application of Fund 27 107,475,57254 217.368,253 80 51 107,475,572.54 217,368,253.80 Total Sources of Fund 7
( 二 ) 项目进度表 11.Summary of Sources and Uses of Funds by Project Component 项目进度表 ( 一 ) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENTI 本期截至 2017 年 12 月 31 日 (For the period ended December 3 1.20!7) 项目名称 : 世界银行贷款少 i 渝合作 ( 广安 ) 示范区基础设施建设项目 ProjectName:Sichuan 一 Chongqing Cooperation(Guang&an)Demonstration Area Infrastructure Construction Project Financed by the World Bank 簖报亘位 : 世行贷款幼安项目领导小组办公室货币单位 : 人民币元. 弃 8
*A X if Current Period Cumulative ti i+ J 9 -, V 1% ) r * A ;t 5,, A, it 7C.,, 19 W Current Period Current Period Current Period Cumulative Cumulative Budget Actual Completed Lif of PAD Actuai Completed 4, -5,432 28 8.804.70 Other
一 价 三
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( VY ) 5_' )t* A, fr A iv. Designated Account Statement t6i /Z w P DESIGNATED ACCOUNT STATEMENT *,J # 12017 J* 12 )9 31 E (For the period ended December 31. 2017) V t,% 't 141 f -7 Project Name: Sichuan-Chongqing Cooperation Depository Bank: Jingeheng Branch, (Guang'an') Demonstration Area Infrastructure Construction Bank of Sichl-lan Construction Project Financed by the World Bank C_'7: 51050189083609588666 'T ;7t_5F: 8472-CHA Loan Account No.:51050189083609588666 No. 8472-CHA -I ": F i -It, k -, T,4 41i "I i ) '' 6', T Prepared bv: The Finance Department ot'sichuan Province Currency: USD A 4*, 5 P -K! "t Part A-Account Activin, for the Current Period Amount A M ir V 1,771,693 13 Beginning Balance I 0: Add 1),191),145 01 Total Amount Deposited this Period by World Bank 9, 1 Q8,253 69 Total Interest Earned this Period if Deposited in Designated Account 891 33 * M T 4,-Y Lp!)9 J-1 li w Total Amount Refunded this Period to Cover Ineligible Expe ditures A IP : Deduct 6.729,25546 Total Amount Withdrawn this Period 6,729,225,46 M 4_1 e7 f9 A _: 7 f 0, 1P Ylj a 4-0 x Total Service Charges this Period if not Included in Above Amount Withd, awn 30.00 A* *R Ending Balance 4,241,582 69 )6 t To be continued 13
B ' ä P itä Part B-Account Reconciliation Amount Amount Advanced by World Bank,000,0000 2 Deduct Fotal Amount Recovered by World Bank Outstanding Amount Advanced to the Designated Account at the End of this Period 5,000,00.00 4 K Ending Balance of Designated Account Add: 759,814 79 Amount Clairnjed but not yet Credited at the End of this Period Application No Amount Wi thdrawn but not yet Claimed at the End of this Period 7i9,764 79 Cumulative Service Charges (If not Included in Item 5 or 6) 500 Deduct 1,397.48 8 f i Ti, k (4-111ýäj7 l,1 Interest Eamed (If Included in Designated Account) 1,397.48 Total Advance to the Designated Account Accounted for at the End of this Period 5,000,000.00 14
1 8472 cha 12 1 6,000 4.000 60 2015 9 2020 9 2020 9 30 3 18 7 3 8 2017 12 31 QF 1) QF 3) QF 2) LS 2) LS 1 5 zx 1 zx 3 zx 4 zx 5 zx 6 zx 7 6 2 3 (1 2000 13 (2 1 1 12 31 (3 l5
(4 2017 12 31 USD 6.5342 4 (l 2017 12 31 1 79,280,160.84 59,936,321.34 115,955,96236 3,387,877.14 (2 30,059,101.27 4,241,582.69 27,715,349.61 (3 8,0 28,991.69 327,987.33 7,701,004.36 (4 19,893,145.87 4,043,559.55 15,730,756.02 118,500.00 (5 8,804.70 (6 436,929.80 100,867,986.71 15.44 14,487,254.51 94,662,618.42 250,000.00 l,633, 550.00 699,675.29 4,571,818.28 (7 72,460,000.00 35,273,838.93 48.68 96,598,316.52 16.51% 5 16
51050189083609588666 5,000,000.00 2017 1,771,693.13 9,198,253.69 891.33 6,729,225.46 30.00 4,241,582.69!7
v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project financed by the World Bank (Loan No.:8472-CRA) is to improve the infrastructure of Linshul County and Qianfeng District through the implementation of the project, promote investment, better clarify Linshui County and Qianfeng District's growth prospects in Chongqing's Metropolitan Inter-locking Region and enhance their urban appeal for livability, employment and convenience. The project involves infrastructure such as new road network, landscape renovation, sewage treatment plants and "software" content such as technical assistance provided by the public training center of Linshul County; the estimated total investment of the project is approximately RMB 1.2 billion Yuan, including the use of a World Bank loan of USD too million (subproject expenditure of Linshui County and Qianfeng District is USD 60 million and USD 40 million respectively), and the rest comes from domestic counterpart funds; project implementation period is 60 months from September 2015 to September 2020; the closing date of the project is September 30, 2020. The Project includes three categories which are civil work, cargo procurement and consulting services. It has a total of 18 contract packages, including 7 civil work contracts, 3 equipment contracts and 8 consulting service contracts. As of December 31, 1-017, 5 civil construction packages of the Sichuan-Chongqing Cooperation (Guang'an) Demonstration Area Infrastructure Construction Project financed by the World Bank had completed the procurement, they are: the Wastewater Intercepting Trunk Project of Qianfeng District (QF-1), Landscape Renovation Project of Qlanfeng District(QF- 3), Industrial Avenue Civil Engineering of Qianfeng District (QF-2), No. 2-5 Road Construction Engineering of Linshui County (LS-2), Wastewater Intercepting Trunk Project, Wastewater Treatment Plant Project, Inflow Pipe and Tall Water Discharge Project of Linshui County (LS-1), and 6 consulting service providers had been selected and contracts had been signed, they are: the Urban Asset Management Plan (ZX-1), the Linshui County Industrial Value Chain Analysis (ZX-3), Project Management and Supervision Units (ZX-4), External Monitoring of Immigration (ZX-5), External Environmental Monitoring (ZX-6) and Linshui County Employment Demand Survey (ZX-7). 18
2. Consolidation Scope of the Financial Statement Consolidation scope of the financial statements covers the financial statements of the project office of Guang'an City, the subproject owners of Qianfeng District and Linshui County, as well as the Special Account set in the Provincial Finance Department. 3. Accounting Policies (1) The Financial Statements of the Project were prepared according to the requirements of Accounting Methods for the World Bank Financed Project (Caijizi [2000] No.13). (2) In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January I to December 3 1. (3) The accrual basis and the debit/credit double entry bookkeeping method are adopted. RMB is used as the recording currency of bookkeeping. (4) The exchange rate adopted in the financial statements is the exchange rate on December 31, 2017 of the People's Bank of China, which is USD 1=RMB 6.5342 Yuan. 4. Explanation of Subjects (1) Project Expenditure As of December 31, 2017, the accumulative expenditure of the project was RMB 179,280,160.84 Yuan, among which, the subproject expenditure of Qianfeng District was RMIB 59,936,321.34 Yuan; the subproject expenditure of Linshui County was RMB 115,955,962.36 Yuan; the expenditure of the project office of Guang'an City was RMB 3,387,877.14 Yuan. (2) Cash and Bank The ending balance is RMB 30,059,101.27 Yuan, of which: funds in the Special Account USD 4,241,582.69, equivalent to RMB 27,715,349.61 Yuan. (3) Total Prepaid and Receivable The ending balance is RMB 8,028,991.69 Yuan, of which: the subproject 19
expenditure of Qianfeng District was RMB 327,987.33 Yuan and the subproject expenditure of Linshui County was RMB 7,701,004.36 Yuan. (4) Payables The ending balance is RMB 19,893,145.87 Yuan, of which: the subproject expenditure of Qianfeng District was RMB 4,043,859.85 Yuan; the subproject expenditure of Linshui County was RMB 15,730,786.02 Yuan; the expenditure of the project office of Guang'an City was RMB 118,500.00 Yuan. (5) Retained Earnings The ending balance is RMB 8,804.70 Yuan, which is mainly interest income. (6) World Bank Loan As of the end of the current year, a total of USD 15,436,929.80's World Bank loan was used, equivalent to RMB 100,867,986.71 Yuan, accounting for 15.44% of the total loans. Specifically, accumulated USD 14,487,254.51 of the World Bank loan has been withdrawn through the Special Account, equivalent to RMB 94,662,618.42 Yuan; USD 250,000.00 for front-end fee, equivalent to RMB 1,633,550.00 Yuan; USD 699,675.29 of interest and commitment fee, equivalent to RMB 4,571,818.28. (7) Counterpart Financing The amount of counterpart funds planned for this year was RMB 72,460,000.00 Yuan, RMB 35,273,838.93 was actually made available, accounting for 48.68% of the total amount. As of the end of this year, RMB 96,598,3 16.52 Yuan was actually made available, accounting for 16.51% of the total planned amount, all were gratuitous counterpart funds. 5. Designated Account The Designated Account of this project is managed by Sichuan Provincial Department of Finance and is set in Jincheng Branch, Sichuan Province, China Construction Bank, with the account number of 51050189083609588666, and USD as currency unit. The initial Deposit of the Special Account is USD 5,000,000.00, the beginning balance of 20
2017 was USD 1,771,693.13 and the reimbursement in the year was USD 9,198,253.69; this year the interest earned was USD 891.33 and the disbursement was USD 6,729,225.46, the service charge was USD 30.00, thus, the ending balance was USD 4,241,582.69. 21