Gansu Provincial Audit Office of the People's Republic of China Audit Report #1l- * #E 4 2023 D 7 - GANSU AUDIT REPORT C 2023 D NO.7 Project Name: Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank A! 8509-CN Loan No.: 8509-CN Project Entity: Gansu Province Foreign Capital Poverty Alleviation Project Management Center : 2022 * 1 A 1 H1 2022 * 10 A 31 H Accounting Year: January 1, 2022 - October 31, 2022 目录 Contents 一、审计师意见．.........................................................................................．……1 1 .Auditor&5 OPinion.....................................................................................．……3 二、财务报表及财务报表附注．................................................................．……5 fl .Financial Statemellts and Notes to the Financial State们以eflts...............．……5 （一）资金平衡表．...............................................................................．……5 1 .Balanee Sheet of Project....................................................................．……5 （二）项目进度表．...............................................................................．……8 11.Sutnmary of SOULrces and Uses ofFunds by Project Component.....．……8 （三）贷款协定执行情况表．.............................................................．……n 111.Statement of Illlplementation of Loan Agreement.........................．……n （四）专用账户报表．.........................................................................．……12 iv. Speeial Account statement.............................................................．……12 （五）财务报表附注．.........................................................................．……14 v.NotestotheFinancia1Statements....................................................．……17 三、审计发现的问题及建议．..................................................................．……20 nl.Audit Findings and Recommendations ..............................................．……27 一、审计师意见 审计师意见 甘肃省外资扶贫项目管理中心： 我们审计了世界银行贷款中国贫困片区产业扶贫试点示范项目2022 年10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 执行情况表和专用账户报表等特定目的财务报表及财务报表附注（第5 页至第19页）。 （一）项目执行单位及甘肃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，簖制专用账户报表是甘肃省财政厅的责任，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 政策的恰当性和做出会计估计的合理性，以及评价财务报表的总体列 1 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 中国贫困片区产业扶贫试点示范项目2022年10月31日的财务状况及截 至该日同年度的财务收支、项目执行和专用账户收支情况。 （四）其他事项 我们审查了本期内由省财政厅报送给世界银行的第57号提款申请书 及所附资料。我们认为资料均符合贷款协议的要求，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。 中华人民共和国甘肃省审计厅 2023年6月29日 地址：中国甘肃省兰州市金昌北路246号 邮政簖码：730000 电话：86一931一5 1 89803 传真：86一931一8929333 2 1. Auditor's Opinion Auditor's Opinion To Gansu Province Foreign Capital Poverty Alleviation Project Management Center We have audited the special purpose financial statements (from page 5 to page 19) of Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank, which comprise the Balance Sheet as of October 31, 2022, the Summary of Sources and Uses of Funds by Project Component, the Statement of Iraplementation of Loan Agreement, and the Special Account Statement for the year then ended, and Notes to the Financial Statements. Project Entity and Gansu 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 Gansu Provincial 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 presentation of the financial 3 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. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank as of October 31, 2022, 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 Matters We also examined the withdrawal application No.57 and the attached documents submitted to the World Bank 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 hereinafter: Financial Statements and Notes to the Financial Statements, Audit Findings and Recommendations. Gansu Provincial Audit Office of the People's Republic of China June 29, 2023 Address: No. 246# Jinchang North Road, Lanzhou City, Gansu Province, P.R. China Postcode:730000 Tel.: 86-931-5189803 Fax: 86-931-8929333 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 4 H. Financial Statements and Notes to the Financial Statements i. Balance Sheet of Project BALANCE SHEET 2022 4 10 A 31 1 (As of October 31,2022) Project Name: Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank Entity Name: Gansu Province Foreign Capital Poverty It: AK t Alleviation Project Management Center Currency Unit: RMB Yuan Application of Fund Line No Beginning Balance Ending Balance 1 714,303,826.59 789,887,124.80 Total Project Expenditures 2 Fixed Assets Transferred 3 Construction Expenditures to be Disposed 4 Investments Transferred-out 4.tVT&5 714,303,826.59 789,887,124.80 Construction in Progress 6 Investment Loan Receivable 7 Including: World Bank Investment Loan Receivable 8 Appropriation of Investment Loan 9 Including: Appropriate of World Bank Investment Loan 10 Equipment 11-- Including: Equipment Losses in Suspense H AM12 27,169,608.09 6,953,426.40 Total Cash and Bank 13 27,169,062.81 6,953,426.40 Cash in Bank ArP: 114 17,817,484.23 3,504,196.40 Including: Special Account 15 545.28 Cash on Hand 16 2,830,196.77 1,262,694.10 Total Prepaid and Receivable 17 Including: World Bank Loan Interest Receivable 18 World Bank Loan Commitment Fee Receivable 5 19 World Bank Loan Service-Fee Receivable 20 Marketable Securities 21 Total Fixed Assets 22 Fixed Assets, Cost 23 Less: Accumulated Depreciation 24 Fixed Assets, Net 25 Fixed Asset Pending Disposal 26 Fixed Asset Losses in Suspense 27 744,303,631.45 798,103,245.30 Total Application of Fund 6 资金平衡表（续前） BALANCE SHEET(continued) 2022年10月31日 (As of october 31,2022) 项目名称：世界银行贷款中国贫困片区产业扶贫试点示范项目 ProjectNa刃ne:PovertyAlleviationandAgricultureDevelopmentDemonstrationProjectinPoor户LreasofChina Loaned勿the Worid Bank 簖报单位：甘肃省外资扶贫项目管理中心 EntityN~:Gansu Province Foreign CaPital PoVerty货币单位：人民币元 参 7 （二）项目进度表 11.Summary ofsources andUsesofFundsbyProjectComponent 项目进度表（一） SIJMMARY OF S01JRCES AND USES OF FUNDS BY PROJECT COMPONENTI 本期截至2022年10月31日 (FOr the period ended october 31,2022) 项目名称：世界银行贷款中国贫困片区产业扶贫试点示范项目 ProjectName:PoveI&tyAlleviationandAgricu1tUreDeveloPmentDemonstrationProjectinPoorAieasofChinaLoaned妙theW0rldBank 簖报单位：甘肃省外资扶贫项目管理中心货币单位：人民币元 李万亘 8 项目进度表（续表） SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT(continued) 本期截至2022年10月31日 伊or theperiodendedoctober31,2022) 项目名称：世界银行贷款中国贫困片区产业扶贫试点示范项目 ProjectNaJ叮e:PovertyAlleviationandAghcu】tureDevelOPm以D曰nonstrationProjectinPoorA托 asofChina LoanedbytheworldBank 簖报单位：甘肃省外资扶贫项目管理中心货币单位：人民币元 多二门 9 项目进度表（二） SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENTR 本期截至加22年10月31日 (F or theperiodendedoctober31,2022) 项目名称：世界银行贷款中国贫困片区产业扶贫试点示范项目 ProjeotN~:PovertyAl1eviationandAghcu1tureDeve1叩mentD~nstrationProjectinPoorAreasofChina LoanedbytheW0rldBallk 簖报单位：甘肃省外资扶贫项目管理中心货币单位：人民币元 犷川 l0 （三）贷款协定执行情况表 111.Statement oflmplementation ofLoanAgreement 贷款协定执行情况表 STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT 本期截至2022年10月31日 (F or theperiodended0Ctober31,2022) 项目名称：世界银行贷款中国贫困片区产业扶贫试点示范项目 ProjeotName:PovertyAlleviationandAghcu】tureDevelopmentDemonstrationProjectinPoorAreasofChinaLoaned勿theW0rldBa吐 簖报单位：甘肃省外资扶贫项目管理中心货币单位：美元从民币元 乡于李 l1 (99) *M*P#* iv. Special Account Statement *)fl *,# #* SPECIAL ACCOUNT STATEMENT *34 it 12022 * 10 A 31 H (For the period ended October 31,2022 i4 "It, It, $1 AA 0 Depository Bank: Business Department of Lanzhou Project Name: Poverty Alleviation and Agriculture branch, China Zheshang Bank Development Demonstration Project in Poor Areas of 8210000011420100004698 China Loaned by the World Bank Account No.: 8210000011420100004698 'R#4 : 8509-CN Ke if A **V*I t:kt Loan No. :8509-CN Currency Unit: USD 2022.1.1-2022.10.31 Accounting Period: January 1, 2022 to October 3 1, Entity Name: Gansu Provincial Finance Department 2022 Part A: Account Activity For The Period Amount 2,794,592.63 Beginning Balance tQ: - Add: Total Amount Deposited by World Bank 2, 160.70 Total Interest Earned this Period (Deposited in Special Account) Total Amount Refunded to Cover Ineligible Expenditures A: Deduct: *MjU-4190 2,306,486.08 Total Amount Withdrawn M * IN- M A JZ I-It 0 IYJ K * V --k ffi Total Service Charges not Included in Above Amount Withdrawn M *1+11% 488,267.25 Ending Balance B%3 :IMJWPA 19 PART B- Account Reconciliation Amount 12 Amount Advanced by World Bank 6,000,000.00 Deduct: 5,515,917.48 Total Amount Recovered by World Bank 484,082.52 Outstanding Amount Advanced to the Special Account at 10/31/2022 488,267.25 Ending Balance of the Special Account at 10/31/2022 Add: Amount Claimed but not yet Credited at 10/31/2022 Application No. Amount Amount Withdrawn but not yet Claimed at 10/31/2022 108.00 Cumulative Service Charges (If not Included in Item 5 or 6 Deduct: 4,292.73 Interest Earned (Included in Special Account) Total Advance to Special Account Accounted for at 10/31/2022 484,082.52 13 （五）财务报表附注 财务报表附注 1．项目概况 世行贷款中国贫困片区产业扶贫试点示范项目，项目贷款号为 8509一CN,20n年经国务院批复，被列入2013至2015财年备选项目规 划。国家发改委于2012年7月25日正式立项，在我省和四力I、贵州实 施。项目前期准备工作于2012年10月全面开展，项目贷款协定于2015 年9月ro日签订，项目于20巧年9月28日正式启动，世行贷款于 2015年12月24日正式生效。世行贷款总贷款额1 .5亿美元，其中甘肃 省贷款6000万粎元，按项目评估时汇率1美元兑6元人民币折算，合 3.6亿元人民币，国内1:1配套，项目总投资7.2亿元。 甘肃省项目区选定了定襼、庆阳、天水、平凉、临夏和武威6个市 的陇襼、渭源、通渭、山民县、临挑、安定、华池、正宁、合水、环县、 张家川、庄浪、静宁、永靖、东乡、古浪等16个县（区）。共包括55 个乡镇、240个村。项目村涵盖自然村1 767个，总户数10.25万户，其 中贫困户4.98万户；按2012年基数统计，总人口42.56万人，其中农 业人口41.66万人，贫困人口22.76万人，贫困发生率54.63％。 项目执行期为2015至2021年，共计5年，2020年2月11日世界 银行提出将该项目截至日期调整为2022年6月30日。贷款由省财政厅 对外统一借款，扼诺偼还责任，对内通过各项目受益地区和部门逐级转 贷。即由项目县（区）政府负责偼还贷款，承担相应的外汇风险。 2．财务报表编制范围 本财务报表的簖制范围包括甘肃省项目办和16个县子项目办的财 务报表及省财政厅专用账户报表。 3．主要会计政策 3.1本项目财务报表按照财政部《世界银行贷款项目会计核算办 法》（财际字〔2000〕13号）、《国际金融组织贷款会计制度》（财际 字〔1999〕165号）和《世行贷款贫困片区产业扶贫试点示范项目财务 管理和会计核算手册》的要求编制。 14 3.2会计核算年度采用公历年制，即公历每年1月1日至12月31 日。 3.3本项目会计核算以“权责发生制”作为记账原则，采用借贷复 式记账法记账，以人民币为记账本位币。 3.4按照中国人民银行2022年10月31日汇率，即USD卜人民币 7 .1 768元。 4．报表科目说明 4.1项目支出 截至2022年10月31日，项目支出账面余额人民币789,887,124.80 元，其中：综合产业链发展人民币667,570,550.30元，公共基础设施与 服务支持人民币54,224,147.35元，产业扶贫机制研究与推广600,000 元，项目管理与监测评价人民币15,838,321.09元，先征费人民币 %4,050.00元，扼诺费人民币3,752,387.60元，建设期利息人民币 24,479,601.96元，汇兑损益人民币22,458,066.50元。 4.2货币资金 截至2022年10月31日，货币资金账面余额人民币6,953,426.40 元。其中：银行存款人民币6,953,426.4元（专用账户人民币3,504,196.4 元）。 4.3项目拨款 截至2022年10月31日，项目拨款账面余额人民币366,015,756.14 元。 4.4项目借款 截至2022年10月31日，项目借款账面余额人民币427,345,326.46 元，其中：合作社发展和公共基础设施人民币33,201,543.54元（折合 4,626,232.24粎元），合作社发展基金人民币296,505,729.71元（折合 41,356,277.13粎元），工程、货物、（非）咨询、培似！I和运营费人民币 15 92,757,369.75元（折合12,928,794.14美元），先征费人民币l,076,520 元（折合150,000粎元），专用账户人民币3,474,163.43元（折合 484,082.52美元）。 5．专用账户使用情况 本项目专用账户设在浙商银行兰州分行营业部，账号为 82 1 0000011420100004698，币种为美元。专用账户首次存款总额 6,000,000.00粎元，世行回收5,515,917.45美元，期末首期存款净额 454,052.52粎元。2022年年初余额2,794,592.63美元，利息收入160.70 粎元，本年度支付2,306,456.08粎元，2022年10月底余额455,267.25 粎元。 6．其他需要说明的情况 6.1项目资金平衡表中世界银行贷款期末数与期初数之差、项目进 度表中相应本期发生额与贷款协定执行情况表人民币本期提款数不一致 是由历年汇兑损益造成的。 6.2截至2022年12月31日，专用账户期末余额4,229.26美元，全 部为利息收入。 6.3经甘肃省外资扶贫项目管理中心与世行沟通，本次审计会计期 间为2022年l月1日至2022年10月31日。 16 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview The loan number of Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank is 8509-CN. The Project was approved to be listed in the Alternative Project Planning of 2013 to 2015 by the State Council in 2011. National Development and Reform Commission officially approved to implement the Project in Gansu, Sichuan and Guizhou Province on July 25, 2012. The preparatory work of the project began in October 2012. The Loan Agreement was signed on September 10, 2015 and the Project was launched on September 28, 2015. The World Bank Loan came into effect on December 24, 2015. The total loan amount from World Bank is USD150,000,000.00, of which USD60,000,000.00 is for Gansu Province, equivalent to RMB360,000,000.00 yuan by the exchange rate of USDl=RMB6 yuan at the time of project appraisal. The project total investment is RMB720,000,000.00 yuan, with the ratio of domestic counterpart funds against World Bank loans of 1: 1. Gansu Province selected 16 counties(districts) of Longxi, Weiyuan, Tongwei, Minxian, Lintao, Anding, Huachi, Zhengning, Heshui, Huanxian, Zhangjiachuan, Zhuanglang, Jingning, Yongjing, Dongxiang and Gulang of 6 cities of Dingxi, Qingyang, Tianshui, Pingliang, Linxia and Wuwei as the project areas, and the project included a total of 55 towns and 240 villages. The Project covers 1767 villages with 102.5 thousand households, in which 49.8 thousand households were low-income families; based on the statistics of 2012, the total involved population was 425.6 thousand including 416.6 thousand of agricultural population and 227.6 thousand of poverty-stricken population, with the poverty rate of 54.63%. The project implementation period is totally 5 years from 2015 to 2021. On February 11, 2020, the World Bank put forward the adjustment to putting off the loan closing date to June 30, 2022. The Provincial Finance Department shall externally borrow the loan and undertake the loan repayment responsibility, and internally re-lending the loan level by level to the beneficial areas and sectors. Namely, the governments of the city and county level are responsible for loan repayment and bear the corresponding foreign exchange risk. 2. Consolidation Scope of the Financial Statements 17 Consolidation scope of the financial statements covers the financial statements of the project office of Gansu province, 16 project management offices of county level, as well as the Special Account set in the Provincial Finance Department. 3. Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for World Bank Financed Projects (Caijizi[2000]No.13), Accounting System for Loans by International Financial Organizations (Caijizi[1999]No.165) and Financial Management and Accounting Manual of the World Bank Financed Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China. 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January 1 to December 31. 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 October 31, 2022 of the People 's Bank of China, which is USD1= RMB7.1768 yuan. 4. Explanation of Subjects 4.1 Total Project expenditures As of October 31, 2022, the book balance of project expenditure was RMB789,887,124.80 yuan, among which, RMB667,570,550.30 yuan was for integrated industry chain development, RMB54,224,147.35 yuan was for public infrastructure and service support, RMB600,000.00 yuan was for industrial poverty mechanism research and promotion, RMBl5,838,321.09 yuan was for the amount of project management and monitoring, RMB964,050.00 yuan was for the front-end fee, RMB3,752,387.60 yuan was for the commitment fee, RMB24,479,601.96 yuan was for the construction period interest, and RMB22,458,066.50 yuan was for the exchange gains and losses. 4.2 Cash and Bank As of October 31, 2022, the book balance was RMB6,953,426.40 yuan, of which RMB6,953,426.40 yuan was for the bank deposit (RMB3,504,196.40 yuan in Special Account). 18 4.3 Project Appropriation Funds As of October 31, 2022, the book balance was RMB366,015,756.14 yuan. 4.4 Project Loan As of October 31, 2022, the book balance was RMB427,345,326.46 yuan, among which, the amount of cooperative development and public infrastructure was RMB33,201 ,543.54 yuan(equivalent to USD4,626,232.24), the amount of cooperative development fund was RMB296,805,729.71 yuan(equivalent to USD41,356,277.13), the total amount of civil works, goods, (non-)consulting, training and operating costs was RMB92,787,369.78 yuan(equivalent to USD12,928,794.14), the front-end fee was RMB1,076,520.00 yuan (equivalent to USD150,000.00), the amount of Special Account was RMB3,474,163.43 yuan (equivalent to USD484,082.52). 5. Special Account The Special account of this project was set in the Business Department of Lanzhou branch, China Zheshang Bank, with the account number of 8210000011420100004698 and USD as currency Unit. The initial deposit of the Special Account is USD6,000,000.00. The amount recovered by World Bank was USD5,515,917.48. The advance to Special Account accounted for at October 31, 2022 was USD484,082.52. The beginning balance of 2022 was USD2,794,592.63, the interest earned was USD160.70, the disbursement this year was USD2,306,486.08, and the balance at the end of October in 2022 was USD488,267.25. 6. Other Explanations for the Financial Statements 6.1 Due to the change of foreign exchange rate, there are discrepancies between the difference of the beginning and ending balance of the World Bank loan in the Balance Sheet, the current year's loan received in the Summary of Sources and Uses of Funds by Project Component and the amount of current year's withdrawals (disclosed in RMB) in the Statement of Implementation of Loan Agreement. 6.2 As of December 31, 2022, the balance of the Special Account was USD4,229.26, all of which were interest earned. 6.3 Through the communication between Gansu Province Foreign Capital Poverty Alleviation Project Management Center and the World Bank, the accounting period of this audit is from January 1, 2022 to October 31, 2022. 19 三、审计发现的问题及建议 审计发现的问题及建议 除对财务报表进行审计并发表审计意见外，审计中我们还关注了项 目执行过程中相关单位国家法规和项目贷款协定遵守情况、内部控制和 项目管理情况、项目绩效及上年度审计建议整改落实情况。我们发现存 在如下问题： （一）违反国家法规或贷款协定的问题 1．合作社资产管理不严，被长期无偿占用． 2017年5月4日，正宁县陇银盛果树种植专业合作社采购喷雾器共 10台，合计 1.48万元，2017年5月30日起，在未签订合同的情况下， 以租赁名义给该合作社10名社员佼用，截至2023年5月底，除2017 年收取租赁费共3000元，上述设备再无任何租赁收入，且设备未收 回。 不符合省财政厅、省农业农村厅《关于印发＜甘肃省农民专业合作 社财务管理实施细则（暂行）＞的通知》（甘财农〔2022〕90号）第二 十一条“合作社应当对国家财政直接补助资金实行专款专用，取得生物 资产、固定资产、无形资产等时，应当及时建立资产台账，登记资产数 量、价值、佼用、折旧摊销、管理等情况，加强资产管护，严禁挤占、 挪用、侵占、私分”的规定。 根据该规定，建议省外资扶贫项目管理中心督促正宁县子项目办查 明该合作社项目形成资产的管理佼用情况，要求该合作社收回或者与农 户签订有偼租赁合同。你单位已接受审计建议。省外资扶贫项目管理中 心已接受审计建议。 2．未按规定组成询价小组，涉及资金3 .8万元。 2021年8月6日，古浪县乡村振兴局实施古浪县世行项目合作社策 划（商业计划）书簖制项目询价采购，该项目由甘肃星杰全过程工程咨 询有限公司以3.8万元中标，询价小组共有3名成员，均为县乡村振兴 局工作人员。 20 不符合《中华人民共和国政府采购法》（国主席令2014年第14号 修正）第四十条“采取询价方式采购的，应当遵循下列程序：（一）成 立询价小组。询价小组由采购人的代表和有关专家共三人以上的单数组 成，其中专家的人数不得少于成员总数的三分之二”的规定。 根据该规定，建议省外资扶贫项目管理中心要求古浪县乡村振兴局 查明原因，规范采购程序，提高政府采购管理水平。省外资扶贫项目管 理中心已接受审计建议。 3．合作社人员构成不符合相关规定． 正宁县陇银盛苹果种植农民专业合作社社员共211名，截至2023 年5月底，全社建档立卡贫困户社员为20名，占所在社区建档立卡户 49户210人的9.52%；全社女性社员7名，仅占社员总人数的3.32%, 达不到规定的标准。 不符合《贫困片区产业扶贫试点示范项目项目实施手册》（中国国 际扶贫中心2015年7月）第3项项目实施准备“第3.3.1条项目支持合 作社的前提条件，本项目资金支持的合作社必须同时满足以下条 件：……04）社区内60％以上建档立卡贫困户参加了合作社且妇女占合 作社成员的30％以上（含30%).．·…”的规定。 根据该规定，建议省外资扶贫项目管理中心督促正宁县乡村振兴局 加强该合作社产业带动作用，社员构成向较贫困及妇女倾斜。省外资扶 贫项目管理中心已接受审计建议。 （二）内部控制方面存在的问题 1．合水县子项目办未按合同约定，提前支付服务费5.90万元． 2022年5月12日，合水县乡村振兴局与周晓雷签订《世行贷款中 国贫困片区（甘肃省合水县）产业扶贫试点示范项目竣工报告编制协议 书》，合同金额5.90万元，同年12月9日，合水县乡村振兴局在未收 到正式报告的情况下，提前向周晓雷支付竣工报告编制费用5.90万元。 截至2023年6月8日，合水县乡村振兴局才收到正式竣工报告。 不符合财政部《关于印发＜行政事业单位内部控制规范（试行）＞的 通知》（财会〔2012〕21号）《行政事业单位内部控制规范（试行）》 第五十六条“单位应当对合同履行情况实施有效监控。……单位应当建 2l 立合同履行监督审查制度”的规定和2022年5月双方签订的协议。 根据该规定，建议省外资扶贫项目管理中心要求合水县乡村振兴局 加强财务收支管理，严格按照合同约定支付款项。省外资扶贫项目管理 中心已接受审计建议。 2．部分合作社财务管理不规范． 一是个别合作社佼用大量现金收支，坐收坐支。2022年合水县星源 养殖专业合作社支出现金共计89.52万元，收入现金共计1 12.33万元。 向陕襼百跃优利士粊乳生物科技有限责任公司销售鲜羊奶，开具现金收 款收据7.95万元未入账，同时将该笔收入直接用于发放合作社人员工 资，也未入账。 二是个别合作社销售凭证不完整，涉及金额201.35万元。其中，古 浪县昌灵山农牧专业合作社2022年销售羔羊收入20.00万元和销售犊牛 收入19.80万元无原始凭证；古浪县国庆养殖专业合作社2022年销售羔 粊收入34.22万元无原始凭证；古浪县振兴源养殖专业合作社2022年销 售粔粊收入30.00万元无原始凭证；合水县星源养殖专业合作社2022年 经营收入97.33万元无原始凭证。 三是个别合作社未记账和簖制财务报表。庄浪县万泉镇屹寺、王岔 和徐城3家果品农民专业合作社2021年至2022年均未进行账务处理； 阳夕11镇东湾、三益、襼湾、王源4家果品农民专业合作社2021年至 2022年均未簖制财务报表；正宁县陇银盛果树种植农民专业合作社 2021年、2022年账面仅有购买固定资产的账务记账，未将其他业务事 项进行会计核算；正宁县老林果业农民专业合作社2022年账面仅有购 买固定资产的账务记账，未将其他业务事项进行会计核算，无法全面真 实反映合作社的财务状况、经营状况。 四是部分合作社固定资产均未计提折旧，涉及原值1,490.30万元。 截至2022年12月底，庄浪县n个合作社于2018年至2020年用世行项 目贷款资金购进生产设备计入固定资产，原值共计1,296.69万元，未计 提折旧。合水县陇欣苹果农民专业合作社2021年9月将世行贷款项目 资金采购的办公用房、选果车间、苹果选果机等原值共计193 .61万元固 定资产入账，截至2022年12月31日，上述固定资产均未计提折旧。 不符合省财政厅、省农业农村厅《关于印发＜甘肃省农民专业合作 社财务管理实施细则（暂行）＞的通知》（甘财农〔2022〕90号）第三 22 条“合作社应根据本实施细则规定和自身财务管理需要，建立健全财务 管理制度，有序开展财务管理工作，加强经济核算，合理筹集资金，管 好用好资产，强化财务监督，控制财务风险，提高经营效益，壮大合作 社经济实力，增加社员收入”的规定。 根据该规定，建议省外资扶贫项目管理中心要求上述子项目办督促 相关合作社加强财务管理和经营管理水平，建立健全财务管理制度。省 外资扶贫项目管理中心已接受审计建议。 3．个别合作社未建立生物资产制度，生物资产台账不完整。 截至2023年5月底，一是合水县星源养殖专业合作社未建立生物 资产管理制度，生物资产台账不完整，仅有羊出生死亡台账，无购买销 售数量登记台账。二是古浪县沙湾湾生态农牧专业合作社、古浪县裕丰 源养殖专业合作社均未建立生物资产管理制度，未建立生物资产购进、 销售、出生、死亡等增减变化明细台账。 不符合省财政厅、省农业农村厅《关于印发＜甘肃省农民专业合作 社财务管理实施细则（暂行）＞的通知》（甘财农〔加22〕90号）第二 十九条“……合作社应当建立健全生物资产管理、养护制度，明确生物 资产管护人员岗位职责。加强对生物资产的成本、增减、折旧、出售、 死亡毁损核算及管理”的规定。 根据该规定，建议省外资扶贫项目管理中心要求上述子项目办督促 相关合作社建立健全生物资产管理、养护制度，加强对生物资产的成 本、增减、折旧、出售、死亡毁损核算及管理。省外资扶贫项目管理中 心已接受审计建议。 （三）项目管理方面存在的问题 1．正宁县子项目办监督不到位，合作社采购中标结果未按规定公示 期限执行． 2022年6月6日，正宁县乡村振兴局负责监督的羲兴源合作社果园 设备采购项目、福星合作社果园设备采购项目、陇银盛合作社果园设备 采购项目和老林合作社果园设备采购项目均为询价方式采购，中标金额 分别为12名5万元、9.84万元、12.85万元和3.9万元，公示期限均为 2022年6月7日至6月8日2个工作日，少于规定的公示期限。 23 不符合《贫困片区产业扶贫试点示范项目采购管理手册》（中国国 际扶贫中心20巧年7月）第六章采购程序与方法第6.3.2条“社区参与 采购程序：……（g）社区参与的需要以合同形式进行的采购，在签订合同 之前必须在行政村公示，同时公布县项目办的监督举报电话，公示不少 于5个工作日，公示无异议后方可签订合同……”的规定。 根据该规定，建议省外资扶贫项目管理中心要求正宁县乡村振兴局 加强合作社采购管理水平，严格按照采购相关规定进行公示。省外资扶 贫项目管理中心已接受审计建议。 2．合水县子项目办监替不到位，个别项目承包单位未按规定提交履 约保证金． 2021年10月20日，合水县世行贷款扶贫项目管理办公室委托甘肃 诺信工程管理有限公司公开招标生产区道路工程，骚臻农牧业发展专业 合作社、星源养殖专业合作社和兴源养殖牧业农民专业合作社3家中 标，中标金额分别为30.99万元、67.％万元和80.53万元，由于合水县 子项目办监督不到位，上述3个项目承包人未按招标文件要求缴纳5% 履约保证金。 不符合《贫困片区产业扶贫试点示范项目采购管理手册》（中国国 际扶贫中心2015年7月）第六章采购程序与方法第6.1.2条“(g）应要求 所有被授予工程合同或单一责任制合同的投标人提交足够额度的履约保 证金，以在扼包人违约情况下保护借款人或项目执行机构利益。招标文 件应规定履约保证金的金额和格式”的规定。 根据该规定，建议省外资扶贫项目管理中心要求合水县世行贷款扶 贫项目管理办公室加强合作社采购管理水平，严格按照采购相关规定提 交履约保证金。省外资扶贫项目管理中心已接受审计建议。 3．部分子项目办财务核算水平较低，导致账表不符． 截至2022年ro月底，古浪县、合水县、正宁县、庄浪县、静宁县 子项目办，由于财务管理水平较低，会计账薄记录未反应世行贷款美元 累计汇兑损益，导致资金平衡表在建工程和项目借款与会计账簿记录不 相符。 不符合《中华人民共和国会计法》（主席令2017年第81号修正） 第十七条“各单位应当定期将会计帐簿记录与实物、款项及有关资料相 24 互核对，保证会计帐簿记录与实物及款项的实有数额相符、会计帐薄记 录与会计凭证的有关内容相符、会计帐薄之间相对应的记录相符、会计 帐薄记录与会计报表的有关内容相符”的规定。 根据该规定，建议省外资扶贫项目管理中心要求上述子项目办提高 财务核算水平，对相关账务进行调整处理。省外资扶贫项目管理中心已 接受审计建议。 （四）项目绩效方面存在的问题 1．环县子项目办监替不到位，个别合作社未按养殖协议执行相应条 款． 2019年9月18日，环县子项目办负责管理的环县虎洞镇永顺隆养 殖农民专业合作社分别与20户合作社社员签订《世行贷款贫困片区产 业扶贫试点示范项目环县合作社扶持建档立卡贫困户养殖协议》，约定 湖粊投放第三年应全部归还同等重量的剩余湖羊，通过核查合作社养殖 资料，2022年，原投放8030公斤湖羊，实际回收6,435.90公斤湖羊， 剩余1,594.10公斤尚未归还。 建议省外资扶贫项目管理中心要求环县子项目办督促相关合作社加 强运营管理水平，督促尚未归还粔羊的农户按协议尽快归还。省外资扶 贫项目管理中心已接受审计建议。 2．粊舍地基沉降存在安全隐患． 2023年6月5日，通过现场勘察发现，由合水县世行贷款扶贫项目 管理办公室监管的合水县星源养殖专业合作社羊舍及办公用房建设项 目，有两个粊舍地基沉降存在安全隐患。该项目2019年n月5日进行 询价招标，中标单位为甘肃富厦建设工程有限公司，中标金额为93.70 万元。 建议省外资扶贫项目管理中心要求合水县世行贷款扶贫项目管理办 公室督促该合作社尽快对存在安全隐患的羊舍进行维修，保证人员和生 产资料的安全，维持合作社正常运行。省外资扶贫项目管理中心已接受 审计建议。 3．庄浪县、静宁县苹果种植合作社经营状况不佳． 25 截至2022年10月底，庄浪县世行贷款项目n个合作社累计完成 投资3,481 .39万元，其中万泉镇3个合作社1,038.08万元，阳川镇4个 合作社l,356.79万元，朱店镇4个合作社l,056.52万元。截至2022年 12月底，n个合作社累计盈余一31031万元（未包括固定资产折旧费 用）,2022年本期盈余0.51万元，均为利息收入，账面反映仅有1个 合作社在2019年至2021年连续发生过统一购销苹果业务，累计销售金 额212.48万元，2家合作社仅在2019年发生过统一购销业务，合计销 售金额39.10万元，其余合作社未开展任何经营活动。 截至2022年10月底，静宁县世行贷款项目ro个合作社累计完成 投资5,326.32万元。截至2022年12月底，10个合作社账面反映累计盈 余共计一107.95万元，本期盈余共计一43.75万元，其中西湾果品农民专业 合作社、浩源果品农民专业合作社、四福果品农民专业合作社3个合作 社世行项目累计投资1,340.21万元，2022年均未开展经营活动。 建议省外资扶贫项目管理中心认真分析上述2个县相关合作社经营 不善的原因，督促两个县积极采取措施，扭转合作社经营状况不佳现 状，切实发挥项目应有的效果。省外资扶贫项目管理中心已接受审计建 议。 （五）上一年度审计发现问题整改情况 上一年度审计报告中披露的省项目办财务管理工作薄弱、个别合作 社社员参与生产经营积极性逐年降低和个别合作社货物采购记录不全或 采购记录存在错误3个问题已全部整改。 26 111. Audit Findings and Recommendations Audit Findings and Recommendations In addition to performing the audit and expressing an opinion on the financial statements, we also made 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 and project management, project performance and the follow-up of the previous year during the project implementing process. We found the following issues: Non-Compliancc with State Laws and Regulations or the Applicable Provisions of the Loan Agreement I.The assets of cooperatives were not strictly managed and were occupied for a long time without compensation. On May 4, 2017, Zhengning Longyinsheng fruit tree planting specialized cooperative purchased a total of 10 sprayers, with a total amount of RMB14,800.00 yuan. From May 30, 2017, without signing the contract, 10 sprayers was leased to 10 members of the cooperative. At the end of May 2023, in addition to the rental fee of RMB3,000.00 yuan in 2017, there was no rental income from the said equipment which had not been recovered. The above practice was not in line with Article 21 of the Notice of the Provincial Department of Finance and the Provincial Department of Agriculture and Rural Areas on Issuing the Regulations for the implementation of Financial Management of Farmers' Specialized Cooperatives in Gansu Province(Interim)(Gancainong [2022] No.90), which states, cooperatives shall make special use of the finids directly subsidized by the State Finance, and when acquiring biological assets, fixed assets and intangible assets, an asset account shall be timely established, the quantity, value, use, depreciation and amortization, management and other information of the assets shall be registered, and the management and protection of the assets shall be strengthened in strict prohibition of misappropriation, appropriation, embezzlement and private division. According to the regulations, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center supervise the sub-project management office of Zhengning county to figure out the management and use of the assets of the cooperative project, and require the cooperative to withdraw or sign a paid lease contract with farmers. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 27 2.An inquiry group was not set up in accordance with the regulations, involving RMB38,000.00 yuan. On August 6, 2021, Gulang Rural Revitalization Bureau implemented the inquiry procurement of cooperative planning(business plan) preparation project of the World Bank project of Gulang county, and Gansu Yujie Whole Process Engineering Consulting Co., Ltd. won the bid with a total of RMB38,000.00 yuan. There were a total of 3 members in the inquiry team, all of which were the staff of Gulang Rural Revitalization Bureau. The above practice was not in line with Article 40 of the Government Procurement Law of the People's Republic of China(President Order [2014] No.14), which stipulates, the following procedures shall be followed: (1) to set up an inquiry group. The inquiry group shall be composed of an odd number of more than three representatives of the purchaser and relevant experts, of which the number of experts shall not be less than 2/3 of the total number of members. According to this regulation, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require Gulang Rural Revitalization Bureau to find out the reasons, standardize procurement procedures and improve the level of government procurement management. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 3.The composition of cooperative personnel did not comply with the relevant regulations. There were 211 members in Zhengning Longyinsheng apple planting specialized cooperatives. By the end of May 2023, there were 20 members from poor households with archives and cards, accounting for 9.52% of the 210 people in 49 households in the community. There were 7 female members, accounting for only 3.32% of the total number of members, which was not up to the prescribed standard. The above practice did not comply with Article 3.3.1 of the "Project Implementation Manual of Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank", which states, III.Project implementation preparation Preconditions for project support for cooperatives... ...04 More than 60% of registered poor households in the community participate in cooperatives, and women account for more than 30% (including 30%) of the members of cooperatives... According to the regulation, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center supervise and urge Zhengning Rural Revitalization Bureau to strengthen the leading role of the 28 cooperative industry, and the membership composition should be tilted towards poverty and women. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. Issues on internal control 1.The project management office of Heshui county failed to pay the service fee of RMB59,000.00 yuan in advance as stipulated in the contract. On May 12, 2022, Heshui Rural Revitalization Bureau and Zhou Xiaolei signed the Preparation Agreement on the Completion Report of Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank(Heshui county in Gansu Province), with a contract amount of RMB59,000.00 yuan. On December 9, 2022, without receiving a formal report, Heshui Rural Revitalization Bureau paid Zhou Xiaolei RMB59,000.00 yuan in advance for the preparation of the completion report. As of June 8, 2023, Heshui Rural Revitalization Bureau received the formal completion report. It did not comply with Article 56 of the Internal Control Code of Administrative Institutions(Trial Implementation)(Caikuai [2012] No.21), which stipulates, the unit shall effectively monitor the performance of the contract. ...the unit shall establish a supervision and review system for the performance of the contract. And it also violated the agreement signed by both sides in May 2022. According to the regulations, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require Heshui Rural Revitalization Bureau to strengthen the management of financial revenue and expenditure and make payments in strict accordance with the contract. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 2.Non-standard financial management of some cooperatives. First, individual cooperatives used a lot of cash on income and expenditure. The amount received was not recorded in the account in accordance with the relevant provisions, and the cash income was directly used for cash expenditure. In 2022, Heshui Xingyuan breeding cooperatives spent a total of RMB895,200.00 yuan in cash and received a total of RMB1,123,300.00 yuan in cash. Sales of fresh goat milk to Shanxi Baiyue Youlishi Diary Biotechnology Co., Ltd. with a cash receipt of RMB79,500.00 yuan, were not recorded in the account, of which the income was directly used to pay the wages of cooperative personnel, and was also not recorded in the account. Second, the sales vouchers of individual cooperatives were incomplete, 29 involving an amount of RMB2,013,500.00 yuan, of which there were no original documents for income of RMB200,000.00 yuan for lamb sales and RMB198,000.00 yuan for calf sales of Gulang Changlingshan agriculture and animal husbandry specialized cooperative in 2022; there were no original documents for income of RMB342,200.00 yuan for lamb sales of Gulang Guoqing breeding specialized cooperative in 2022; there were no original documents for income of RMB300,000.00 yuan for lamb sales of Gulang Zhenxingyuan breeding specialized cooperative in 2022; there were no original documents for the operating income of RMB973,300.00 yuan of Heshui Xingyuan breeding specialized cooperative in 2022. Third, individual cooperatives did not keep accounts and prepare financial statements. The fruit and farmers' specialized cooperatives of Gesi, Wangcha and Xucheng in Wanquan town in Zhuanglang county did not deal with the accounts from 2021 to 2022; The fruit and farmers' specialized cooperatives of Dongwan, Sanyi, Xiwan and Wangyuan in Yangchuan town did not prepare financial statements from 2021 to 2022; the books of Zhengning Longyinsheng fruit tree planting cooperative only included the purchase of fixed assets, and it did not carry out accounting for other business matters; in 2022, the book of Zhengning Laolin fruit and farmers' specialized cooperative only included the accounting of the purchase of fixed assets, and did not carry out accounting for other business matters, which could not fully and truly reflect the financial status and operating conditions of the cooperative. Fourth, the fixed assets of some cooperatives were not depreciated, involving the original value of RMB14,903,000.00 yuan. By the end of December 2022, 11 cooperatives in Zhuanglang county had used the World Bank project loan funds to purchase production equipment from 2018 to 2020 as fixed assets, with a total original value of RMB12,966,900.00 yuan without depreciation. In September 2021, of Heshui Longxin apple farmers' specialized cooperative recorded a total of RMB1,936,100.00 yuan of fixed assets purchased with the funds of the World Bank loan project, such as office buildings, fruit sorting workshops and apple fruit sorting machines. As of December 31, 2022, the above-mentioned fixed assets had not been depreciated. The above practices were not in line with Article 3 of the Notice of the Provincial Department of Finance and the Provincial Department of Agriculture and Rural Areas on Issuing the Regulations for the Implementation of Financial Management of Farmers' Specialized Cooperatives in Gansu Province(Interim)(Gancainong [2022] No.90), which states, cooperatives shall, in accordance with the provisions of the regulations and their own financial management needs, establish and improve financial management systems, carry out financial management work in an orderly manner, strengthen economic accounting, raise funds reasonably, manage and 30 make good use of assets, strengthen financial supervision, control financial risks, improve operation efficiency, expand economic strength of cooperatives and increase the income of cooperative members. According to the regulations, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require the above-mentioned project management offices to supervise the relevant cooperatives to strengthen their financial management and operation management level, and to establish and improve the financial management system. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 3.Individual cooperatives failed to establish a biological assets system, and the accounts of biological assets were incomplete. By the end of May 2023, the Heshui Xingyuan breeding specialized cooperative had not established a biological assets management system, and the biological assets account was incomplete,of which only sheep birth and death account were recorded, without purchase and sales volume records. Both Gulang Shawanwan ecological agriculture and animal husbandry specialized cooperative and Gulang Yufengyuan breeding specialized cooperative had not established a biological assets management system, and set up detailed accounts of changes in the purchase, sales, birth and death of biological assets. The above practice was not in line with Article 29 of the Notice of the Provincial Department of Finance and the Provincial Department of Agriculture and Rural Areas on Issuing the Regulations for the Implementation of Financial Management of Farmers' Specialized Cooperatives in Gansu Province(Interim)(Gancainong [2022] No.90), which states, cooperatives shall establish and improve systems for the management and maintenance of biological assets, clarify the duties and responsibilities of personnel in the management and protection of biological assets, strengthen the accounting and management on the cost, increase and decrease, depreciation, sale, death and damage of biological assets. According to this regulation, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require the above-mentioned project management offices to urge the relevant cooperatives to establish and improve the biological assets management and conservation system, strengthen accounting and management of the cost, increase and decrease, depreciation, sale, death and damage of biological assets. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 31 Issues on project management 1.The supervision of project management office of Zhengning county was not in place, and the bidding results of cooperative procurement were not carried out according to the prescribed time limit. On June 6, 2022, Zhengning Rural Revitalization Bureau was responsible for supervising the procurement projects of orchard equipment of Xixingyuan cooperative, Fuxing cooperative, Longyinsheng cooperative and Laolin cooperative, of which the winning bids were RMB128,500.00 yuan, RMB98,400.00 yuan, RMB128,500.00 yuan and RMB39,000.00 yuan respectively. The publicity period was two days from June 7 to June 8, 2022, less than the stipulated publicity period. The above practice was not in line with Article 6.3.2 of the "Procurement Management Manual of Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank", which states, Chapter 6 Procurement procedures and methods The community participates in procurement procedures... (g) the procurement of community participation in the form of a contract must be publicized in the administrative village before signing the contract. At the same time, the supervision and reporting telephone number of the project management office of the county shall be publicized for not less than 5 working days, and the contract can be signed only if there is no objection. According to the regulation, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require Zhengning Rural Revitalization Bureau to strengthen the management level of cooperative procurement and publicize the procurement in strict accordance with the relevant procurement regulations. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 2.The supervision of the project management office of Heshui county was not in place, and individual project contractors did not submit the performance bond in accordance with the regulations. On October 20, 2021, the World Bank Loan Poverty Alleviation project management office of Heshui county entrusted Gansu Nuoxin Engineering Management Co., Ltd. to to bid for road projects in the production area. Yizhen agriculture and animal husbandry development specialized cooperative, Xingyuan breeding specialized cooperative and Xingyuan breeding farmers' specialized cooperative won the bid with the bidding amount of RMB309,900.00 yuan, RMB679,600.00 yuan and RMB805,300.00 yuan respectively. Due to the lack of supervision by the the project management office of Heshui county. The above three project 32 contractors failed to pay 5% performance bond in accordance with the requirements of the bidding documents. The above practice was not in line with Article 6.1.2 of the "Procurement Management Manual of Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas of China Loaned by the World Bank", which states, (g) all bidders awarded with an engineering contract or a single responsibility contract shall be required to submit a sufficient amount of performance bond to protect the interests of the borrower or project execution agency in the event of contractor default. The bidding documents shall stipulate the amount and format of the performance bond. According to the regulation, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require the World Bank Loan Poverty Alleviation project management office of Heshui county to strengthen the procurement management level of cooperatives and submit the performance bond in strict accordance with the relevant procurement regulations. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 3.Low financial accounting level of some project management offices resulted in discrepancies in the accounts and statements. By the end of October 2022, due to the low level of financial management of the project management offices of Gulang county, Heshui county, Zhengning county, Zhuanglang county and Jingning county, the accumulated exchange gains and losses in USD of World Bank loan were not reflected on the books, resulting in the discrepancy of between project loan and for construction in progress in the balance sheet and that of the books. The above practice was not in line with Article 17 of the Accounting Law of the People's Republic of China(President Order [2017] No.81), which stipulates, each unit shall regularly check the accounting book records with the physical objects, funds and relevant information to ensure that the accounting book records are consistent with the actual amount of the physical objects and funds, the accounting book records are consistent with the relevant contents of the accounting documents, the corresponding records between the accounting books and the relevant contents of the accounting statements. According to the regulation, we suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require the above-mentioned project management offices to improve the level of financial accounting and adjust the relevant accounts. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 33 Issues on project performance 1.The supervision of the project management office of Huanxian county was not in place, and some cooperatives did not implement the corresponding provisions in accordance with the breeding agreement. On September 18, 2019, the Yongshunlong breeding farmers'specialized cooperative in Hudong Town of Huanxian county, which was managed by project management office of Huanxian county, signed with 20 cooperative members the "Farming Agreement of Huanxian Cooperative in Supporting the Establishment of Archives and Card for Poverty Alleviation and Agriculture Development Demonstration Project in Poor Areas Loaned by the World Bank", which agreed that all the remaining Hu sheep of the same weight should be returned in the third year. Through the verification of cooperative breeding data, 8030 kg of Hu sheep was originally released in 2022, but 6435.90 kg of Hu sheep was actually recovered, and the remaining 1594.10 kg were not returned. We suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require the project management office of Huanxian county to supervise the relevant cooperatives to strengthen the level of operation and management, and urge farmers who have not yet returned the sheep to return the sheep as soon as possible according to the agreement. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 2.Hidden dangers in the settlement of sheep house foundation. On June 5, 2023, through on-site check, it was found that there were hidden dangers in the foundation settlement of two sheep sheds in the construction project of sheep house and office building of Heshui Xingyuan breeding specialized cooperative, which was supervised by the World Bank Loan Poverty Alleviation project management office of Heshui county. The project was requested for bidding on November 5, 2019, and the winning bidder was Gansu Fuxia Construction Engineering Co., Ltd., with the bidding amount of RMB937,700 yuan. We suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center require the World Bank Loan Poverty Alleviation project management office of Heshui county to urge the cooperative to maintain the sheep shed with safety risks as soon as possible to ensure the safety of personnel and means of production and to maintain the normal operation of the cooperative. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. 34 3.The operation of apple planting cooperatives in Zhuanglang county and Jingning county was not good. By the end of October 2022, there had been a total investment of RMB34,813,900.00 yuan completed by 11 cooperatives of the World Bank Loan project in Zhuanglang county, including RMB10,380,800.00 yuan for 3 cooperatives in Wanquan town, RMB13,867,900.00 yuan for 4 cooperatives in Yangchuan town and RMB10,565,200.00 yuan for 4 cooperatives in Zhudian town. By the end of December 2022, the accumulated surplus of 11 cooperatives was RMB-3,103,100.00 yuan(excluding depreciation of fixed assets), and the current surplus in 2022 was RMB5,100.00 yuan, all of which were interest earned. It was reflected in the book that only one cooperative had a unified purchase and sale of apple business continuously from 2019 to 2021, with a cumulative sales amount of RMB2,124,800.00 yuan, and two cooperatives only had a unified purchase and sale business in 2019, with a total sales amount of RMB391,000.00 yuan. The rest of cooperatives did not carry out any business activities. By the end of October 2022,there had been a total investment of RMB53,263,200.00 yuan completed by 10 cooperatives of the World Bank Loan project in Jingning county. By the end of December 2022, it was reflected in the books of 10 cooperatives that accumulated surpluses totaled RMB-1,079,500.00 yuan, and the current surplus totaledRMB-437,500.00 yuan, including the cumulative investment of RMB13,402,100.00 yuan for the World Bank project of Xiwan fruit farmers' specialized cooperative, Haoyuan fruit farmers' specialized cooperative and Sifu fruit farmers' specialized cooperative, and no business activities were carried out in 2022. We suggested the Provincial Foreign Capital Poverty Alleviation Project Management Center seriously analyze the reasons for the poor management of the relevant cooperatives in the above two counties, and urge the two counties to actively take measures to reverse the poor operation of cooperatives and give full play to the due effect of the project. The Provincial Foreign Capital Poverty Alleviation Project Management Center accepted the suggestion. The Followed-up of previous recommendation The problem of "The financial management of provincial project office was weak", "The enthusiasm of individual cooperative members to participate in production and operation was decreasing year by year" and "The procurement records of individual cooperatives were incomplete or there were errors in the procurement records" disclosed in the audit report of previous year were all rectified. 35