3 0 JUN 2022 Audit Office of Guangxi Zhuang Autonomous Region of the People's Republic of China Audit Report 4'WkF (2022) 16-W GXAUDIT REPORT (2022) NO.16 Project Name: Guilin Integrated Environment Management Project Financed by the World Bank S#: 8458-CN Loan No.: 845 8-CN Project Entity: Project Management Office of the Leading Groups of Guilin Integrated Environment Management Project Financed by the World Bank 2021 Accounting Year: 2021 歹弓 r 飞 目录二 } Contentsl 一、审计师意见．……，.,.．…，．…，．…，,,，…，.，……，．…，…，．……，.，…，二，.，··，····，·········，···一1 I,Auditor，。opinion...................．……，..........................................．··············一3勤， 二、财务报表及财务报表附注．....．……，二，.,,．…，.....................................．……，.,.6 11,Financial Statemellts and Notes to the Financial Statemeflts,.．…，..........．……6 不 （一）资金平衡表二，.,...............．……，................．……，............．……，……，.，……6:- 1 .Balance Sheet ....．……，．…，．…，二，，…，...．……，，……，…，．…，．…，…，,..................．……6 （二）项目进度表．............．……，．…，……，...................................．·．.．········……8 11.Summaly ofsources andUsesofFundsbyProjectComponent,.．…，…，,8 （三）贷款协定执行情况表．............................................................．……10 犷 111.Statement oflrnplementation ofFinancingAgreement,，二，二，…，，二，,．……10；· （四）专用账户报表．.........................................................................．……n iv.Special Account Statement ............................................................．……，.11{ 乏 （五）财务报表附注．...............．……，....．……，....．……，..．……，……，…，.....．……13 v.Notes to the Financial Statements ..............．……，..............................．……16 r 三、审计发现的问题及建议，，…，…，，二，……，，二，,．……，.．……，，…，.,.,,.．……，，…，…，…20羲 111.Audit Findings and Reco~endations ................................................．……22 篆 ) { 一、审计师意见 ；审计师意见 桂林市世行贷款环境综合治理工程项目领导小组办公室： 戮我们审计了世界银行贷款桂林市环境综合治理项目2021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 专用账户报表等特定目的财务报表及财务报表附注（第6页至第20页）。 }（一）项目执行单位及幼襼壮族自治区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 ：一表是你办的责任，簖制专用账户报表是广西壮族自治区财政厅的责任，这 狄种责任包括： 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 戮于舞弊或错误而导致的重大错报。 （二）审计责任 !＿我4l’〕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。 i＿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 氰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 {1 l 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，为发表审计意见蒙 提供了基础。’ （三）审计意见 我、：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桂 林市环境综合治理项目2021年12月31日的财务状况及截至该日同年度 的财务收支、项目执行和专用账户收支情况。 （四）其他事项 我们还审查了本期内报送给世界银行的第GXGL20至第GXGL21号貂 提款申请书及所附资料。我们认为，这些资料均符合贷款协议的要求，可戮 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。戮 ：下资几 中华人民共和国幼襼壮族自治娜审计厅 2叨丁势”2‘吟一之一了 ~～尹严 地址：中国幼襼南宁市民族大道98号 邮政簖码：530022 电话：86一771一5800259 传真：86一771一5800259; 2 1. Auditor's Opinion Auditor's Opinion To Pro ect Management Office of the Leading Groups of Guilin Integrated Environment Management Project Financed by the World Bank We have audited the special purpose financial statements (from page 6 to page 20) of Guilin Integrated Environment Management Project financed by the World Bank, which comprise the Balance Sheet as of December 31, 2021, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Financing Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. The Responsibility of Project Entity and the Finance Department of Guangxi Zhuang Autonomous Region 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 Financing Agreement is the responsibility of your office, while the preparation of the Special Account Statement is the responsibility of the Finance Department of Guangxi Zhuang Autonomous Region, 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 ftaud 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 3 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. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Guilin Integrated Environment Management Project financed by the World Bank as of December 31, 2021, 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 No.GXGL20 to No. GXGL21 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. Audit Offic"of Ouangxi ZhtAgAutonomous Region of eople'sRepulcu f China June 24, 20 ?2 , 4 Address: No. 98, Minzu Avenue, Nanning, Guangxi, P.R. China Posteode: 530022 Tel.: 86-771-5800259 Fax: 86-771-5800259 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 5 I. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2021 4- 12 A 31 E (As of December 31, 2021) Project Name: Guilin Integrated Environment Management Project Financed by the World Bank Prepared by: PMO of the Leading Groups of Guilin Integrated Environment Management Currency Unit: RMB Yuan Project Financed y the World Bank Application of Fund Line Beginning Balance Ending Balance Sources of Fund Beginning Balance Ending Balance Total Project Expenditures 1 558,320,993.60 624,819,636.15 Total Project 28 106,978,748.27 128,668,865.24 Appropriation Funds Fi ssetsTransfr 2 0.00 74,635,585.44 Project Capital and Capital 29 - Fixed Assets Transfered Surplus 2. 0$19V9iVTHA lkR 1il 4n :1fiEV Construction Expenditures 3 - - ncluding. Grants 30 to be Disposed Investments Transferred-out Total Project Loan 31 501,413,594.72 522,464,640.57 4. E I, . P11, 41[ - iA- f," 4. in P r 558,320,993.60 550,184,050.71 Total Project 32 501,413.594.72 522,464,640.57 Construction in ProgressToaPrjc Investment Loan rl kt f ) iZ X 6 - - 1 11*f 33 457,013,594.72 485,764,640.57 Investment Loan Receivable Foreign Loan A r(.p iFL,ql Ff p- v , wET WIxA vk 4A : IillPT - Xt½ Including. World Bank 7 - - nclding IDA- - Investment Loan Receivable Appropriation of Investment 8 - - IBRD 35 457,013,594.72 485,764,640.57 Loan ::W Viilti f`I,L, ''4 11 1` Including Appropriation of 9 - Technical 36 - - World Bank Investment Loan Cooperation Pil. PiEI&4 10 - - 37 - - Equipment Co- Financing 44;rf ¶*it~4Puiit(2) 1IAi.htitLt-r: Including: Equipment Losses 11 - - ( o2) si a 38 44,400,000.00 36,700,000.00 in Suspense Domestic Loan T f Vi&ih I 21 4Jil %ilHVX 1 12 80,510,527 45 35,222,773.78 Other Loan 39 Total Cash and Bank OhrLa C m 13 80,510,527.45 35,222,773.78 Appropriation or 40 - - Cash in Bank Investment Loan Including Special Account 14 65,319,693,05 31,752,489,96 Including: World Bank 41 - Loan Cash on Hand i Bond Fund 42 ' Y-: (To be continued) 6 Total Prepaid and Receivable 16 2,286,594.60 2,286,594,60 Construction Expenditures 43 Total Prepaid and Receivable _to be Offset A9:24kll WWRLGl.. ANt At Including: World Bank Loan 17 -Total Payable 44 32,653,670,23 11,118,962.14 Interest Receivable World Bank Loan ApT-. M M4, WorldtBan Lon 18 - - Including: World Bank 45 - mmitment Fee Loan Interest Payable World Bank Loan Service- 19 - - World Bank Loan 46 - Fee Receivable Commitment Fee Payable Marketable Securities 20 - - World Bank Loan Service 47 - Fee Payable A Ifil KF F 2 Al 422fil- 4 Total Fixed Assets 21 - - Other Payables 48 - Fixed Assets, Cost 22Appropriation of Fund tiiffril +. 2JMk Less: Accumulated 23 - - RA 50 72,102.43 76,536.58 Dercito Retained Earnmngs Depreciation Fixed Assets, Net 2 Fixed Assets Pending Disposal 2 Fixed Assets Losses in Suspense 2 Tl o M--f Fund 27 641,118,115.65 662,329,004.53 51 641,118,115.65 662,329,004.53 Total Application of Fund Total Sources of Fund ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I *A;A E 2021 * 12)A 31 H (For the period ended December 31, 2021) Project Name: Guilin Integrated Environment Management Project Financed by the World Bank Prepared by: PMO of the Leading Groups of Guilin Integrated Environment Management Currency Unit: RMB Yuan Project Financed by the World Bank Current Period Cumulative *AH-Jair9iCurrent JT4,HSi I J 9 Current Period Current Period Cumulative Cumulative % Budget Actual ped Actual Completed Completed To Sore ofI Fund 11- i I65,398,915,54 42,741,162.82 65.35% 784,291,300,00 651,133,505,81 83.02% Total Sources of Funds 26,595,597.60 28,751,045.85 108.10% 569,500,000.00 485,764,640.57 85.30% International Financing- L 1iV-/14fl,.,ft0R 26,595.597.60 28,751,045.85 108,10% 569,500,000,00 485,764,640.57 85.30% IBRD Conerpr 38,803,317.94 13,990,116.97 36.05% 214,791,300.00 165,368,865.24 76.99% Counterpart Fmnancing Total Application of Funds (by 65,398,915.54 66,498,642.55 101.68% 784,291,300.00 624,819,636.15 79.67% Project Component) i.a I4Iitit l AI. 30,553,404.00 13,359,334.37 43.72% 315,629,050.00 275,299,799.50 87.22% Guilin water supply pipelines Transformation of Guilin Sewerage 27,733,722.00 57,339,446.19 206.75% 426,781,460.00 319,773,470.07 74,93% & WWTP, pumping stations and urban drainage pipe network 5,050,000.00 -4,926,752.68 -97.56% 28,213,890.00 19,948,893.34 70.71% Sludge management 120,000.00 -41,027.25 -34.19% 6,967,505.41 5,876,929.14 84,35% Guilin water quality monitoring and pollution management Capacity building and project 1,941,789.54 767,641.92 39.53% 6,699,394.59 3,920,544.10 58.52% implementation support D -23,757,479.73 - - 26,313,869.66 Difference 1. FRlk- Mt 0.00 - 2,286,594.60 Change in Receivables 2. 21,534,708.09 - - -11,118,962.14 . Change in Payables 3. 45,287,753,67 35,222,773,78 Change in Cash and Bank 4. 4 Other -4,434.15 - - -76,536,58 SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT II tMA--: 2021 4 12 A 31 H (For the period ended December 31, 2021) Project Name: Guilin Integrated Environment Management Project Financed by the World Bank Prepared by: PMO ofthe Leading Groups of Guilin ntegrated Environment Management Project Financed by the World Bank Cunency Unit: RMB Yuan Project Expenditure 1 t IP AssetsTransferred ti*41R# iPi 0 fli1E ProjectComponent Cm15iE Ast Transferred Construction Investments Cumulative [igggyJt ogft±Er il# efre Work in Expenditures to Transferred- Amount Fixed Asset Current Asset Intangible Asset Deferred Progress bediso T Asset be Disposed out 1. tI 275,299,799.50 63,650,988.66 - 10,984,596.78 - 200,664,214,06 - Guilin water supply pipelines Transformation of Guilin Sewerage & WWTP, pumping stations 319,773,470.07 - - - - 319,773,470.07 - - and urban drainage pipe network _______________ 2.1 F 220,793,831.98 220,793,831.98 Transformation of Guilin Sewerage & WWTP 2.2 A27,879,746.61 27,879,74661 Transformation of pumping stations2779466- -- 278,4.1-- 2.3 1AIi l 7? 1 ia 69,893,351.98 ---- 69,893,351.98 - Transformation of urban drainage pipe network 2.4 Ai 274,071.23 274,0723 Transformation of Bali street drainage pipe network 2.5 Il9i Rt 191t&93 Transformation ofLingui drainage pipe network 932,468.27 932,468.27 3. ilERI 19,948,89334 - - - - 19,948,893.34 - - Sludge management ______ 4. 5,876,929.14 - - - - 5,876,929.14 - - Guilin water nuality monitorin and nollution management 5. fill31 'Ai&4 3,920,544.10 - - - - 3,920,544.10 Capacity building and projet implementation support 624,19,636.15 63,650,988.66 10,984,596,78 - 550,184,050.71 - - Total 9 CE_=) *fl*A#V fl 4 iii. Statement of Implementation of Financing Agreement STATEMENT OF IMPLEMENTATION OF FINANCING AGREEMENT *,M 2021 4 12 f9 31 El (For the period ended December 31, 2021) Project Name: Guilin Integrated Environment Management Project Financed by the World Bank 0V44:E: R'fP*fk&: At/Ak-t Prepared by: PMO of the Leading Groups of Guilin Integrated Environment Management Project Currency Unit: USD/RMB Yuan Financed by the World Bank XIJ Loan Amount Current-period Withdrawals Cumulative Withdrawals Category E N ft AR5 K, TIrI USD USD RMB USD RMB LW s,GiDl,C frJfR I 30,000,000.00 371,874.30 2,370,958,97 25,099,354.30 160,025,953.21 CWs.GJDs,CS for Pt. __________ __l_____ 2. CsTGli. &3& 53,065,000.00 5,649,146.49 36,017,263.28 39,558,878.56 252,215,542.03 CWs,GDs,CS for Pt.2 &3 3. If{1jJ+ ifiHRiA 685,090.36 - - 685,090.36 4,367,930.61 GDs,CS for Pt.4 4, htJJTi Y3 i Ug -, f|) ifUJK i u. tVI tilii &loC 999,909.64 127,517.15 813,011.09 596,685.81 3,804,289,72 CS,nCS,GD,TRN,IOC Pt.5 5. En Fe 250,000.00 - - 250,000.00 1,593,925.00 Front End Fee 6. AcouP - - - 10,000,000.00 63,757,000.00 Special Account Total0 85,000,000.00 6,148,537.94 39,201,233.34 76,190,009.03 485,764,640.57 10 iv. Special Account Statement SPECIAL ACCOUNT STATEMENT f, 2021 * 12 A 31 F (For the period ended December 31, 2021) Project Name: Guilin Integrated Environment Management Depository Bank: Nanning Branch of Industrial Project Financed by the World Bank Bank Co., Ltd J A4k: 8458-CN AFT: 552011400100022199 Loan No. 8458-CN Account No. :552011400100022199 Prepared by: The Finance Department of Guangxi Currency: USD Zhuang Autonomous Region A dft'T: K!~flk'&t Part A-Account Activity for the Current Period Amount 10,010,834.35 Beginning Balance Add: *'1E T19 R 6,148,537T94 Total Amount Deposited this Period by World Bank *MTU A.J ,b (4A#JTFIA PMPWY) 954.07 Total Interest Earned this Period if Deposited in Special Account Total Amount Refunded this Period to Cover Ineligible Expenditures Deduct: I i, ]80,066.47 Total Amount Withdrawn this Period MtWt1 iJ#1NflJ ¶E* t[ 1 24.00 Total Service Charges this Period if not Included in Above Amount Withdrawn 4,980,235.89 Ending Balance (}P A To be continued) 11 Part B-Account Reconciliation Amount 1. 114&& &@ Amount Advanced by World Bank 10,000,000.00 Deduct: 2. ttfifM& Total Amount Recovered by World Bank Outstanding Amount Advanced to the Special Account at the End of this Period 10,000,000,00 Ending Balance of Special Account 4,980,235.89 Add: S. M tH- i 1* V iM VKLUA4EfFj * -ll 4r 9J Amount Claimed but not yet Credited at the End of this Period Application No. Amount 6. 0E*YA*J])(i)$8 1 5,031,528.53 Amount Withdrawn but not yet Claimed at the End of this Period 7. ly iliJi (l+A,*E 5T6t±t) 24000 Cumulative Service Charges (If not Included in Item 5 or 6) Deduct: 8. 1JQAX (4Xtifl8hflig) 12,004.42 Interest Eamed (If Included in Special Account) 9. t1wll*l@ mi!l A uf0 10,000,00000 Total Advance to the Special Account Accounted for at the End of this Period 12 } { （五）财务报表附注 { 财务报表附注 1．项目概况 )’世界银行贷款桂林市环境综合治理项目贷款号为8458一CN，旨在通过 该项目的实施，提高桂林市供水和污水处理服务水平。该项目内容包括桂 林市供水管籑工程、市区污水处理厂和排水泵站改造及城市排水管网改造 工程、污泥处理工程、桂林市水环境监测与污染源管理信息系统、能力建 ：设和项目实施支持等。项目协议于20巧年4月1日签订，2015年6月29 麦日生效，原计划2020年12月31日前关闭，经202。年项目中期调整，延 期至2021年12月31日前关闭。原项目计划总投资为人民币959,090,000 元，其中世界银行贷款总额为100,000,000美元，折合人民币616,950,000 ｛补元；自2020年12月10日起，经世界银行同意调减该项目贷款额度 氦、巧，000,000粎元，调整后的贷款额度为85,0 00,000美元；项目计划总投资 调整为人民币784,000,0 00元，其中世界银行贷款总额为85,000,000美元 （约折合人民币569,500,000元）。 2．财务报表编制范围 本财务报表的簖制范围包括桂林市项目办、桂林市自来水有限公司 （原“桂林市自来水公司”）、挂林市排水有限公司、桂林市生态环境污染 ’源监控中心（原“桂林市环境自动监控管理力、公室，,）的财务报表及广西壮 族自治区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）的要求编制。 3.2会计核算年度采用公历年制，即公历每年1月l日至12月31日。 李 如33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 蛋 l]3 } 账法记账，以人民币为记账本位币。 3.4按照中国人民银行2021年12月31日汇率，即USDI二人民币 6 .3757元。 4．报表科目说明孰 4.1项目支出 2021年项目支出人民币66,4 98,6 42.55元，累计支出人民币 624,8 19,636.15元，占总投资计划的79.670,0。 4 .2货币资金｛_ 2021年12月31日货币资金余额为人民币35,222,773.78元，比上年 减少人民币45,287,753.67元，其中专用账户存款折合人民币31,752,489.% 兀。誉 4,3预付及应收款 2021年12月31日余额为人民币2,2 86,594.60元，主要是预付工程款、 垫付农民工工资保证金等。颤 l 4.4项目拨款 2021年12月31日余额为人民币1 28,668,865,24元，其中：政府配套 资金为人民币25,056,73 1 .15元；企业自筹资金为人民币100,612,134.09誓· 元。熟 4.5项目借款 2021年12月31日余额为人民币522,4 64,640.57元，其中：国际复兴： 开发银行贷款额为76,19仇009.03粎元，折合人民币485,764,640.57元；国戮 内借款为人民币36,700,000.00元。 截至2021年12月31日，累计提取世界银行贷款资金76,1 90,009.03 粎元，占贷款总额的89.64％。其中：供水子项工程、货物及咨询服务类｝ 累计提款25,099,354.30粎元，占该类计划的83.&%；污水污泥子项工程轰 l4 囊 及货物类累计提款39,558,878.56美元，占该类计划的74.55%；环保子项 ！气货物及咨询服务类累计提款685,090.36美元，占该类计划的100%；能力 建设子项咨询服务、非咨询服务、货物、培训、研讨及IOC类累计提款 596,685.51粎元，占该类计划的59.67%；先征费250,000.00美元；周转 金10,000,000,00美元。 4.6应付款 2021年12月31日余额为人民币11,118,9 62.14元，主要是应付未付 工程质保金、项目工程款、借备用金和财政垫付的承诺费、利息等款项。 ) &4.7留成收入 2021年12月31日余额人民币76,536.58元，主要是专用账户存款利 息收入。 淤5．专用账户使用情况 本项目专用账户设在兴业银行股份有限公司南宁分行，账号为 552011400100022199，币种为粎元。专用账户首次存款5,000,000.00美元， 蒙2019年新增周转金5,000,000.00美元，年末专用账户首次存款 歌10,000,000,00粎元。2021年年初余额10,0 10,834.35美元，本年度回补 6,145,537.94粎元，利息收入954.07美元，本年度支付11,180,066.47美元， 服务费支出24.00粎元，截至本期期末已支付但尚未申请报账金额为 ）·5,031,528·53粎元，年末余额4,980,235.89美元。 6．其他需要说明的事项 项目资金平衡表中国际复兴开发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 致是由于历年汇兑损益造成的。 { 赴15 v. Notes to the Financial Statements Notes to the Financial Statements 1.Project overview The Loan No. of Guilin Integrated Environment Management Project Financed by the World Bank is 8458-CN. It aims to improve water supply and sanitation services in Guilin City through the implementation of the project. The contents of this project include the engineering of Guilin water supply network of pipelines; Wastewater Treatment Plants in urban area; transformation of Guilin sewerage, pumping stations and urban drainage pipe network; sludge management; information system of Guilin water quality monitoring and pollution management; capacity building and project implementation support. The Project Agreement was signed on April 1, 2015 and came into effect on June 29, 2015. Originally the account of the project will be closed before December 31,1 2020, after the mid-term adjustment in 2020, it has been postponed to close before December 31, 2021.The total planned investment of the original project was RMB959,090,000 yuan, including the World Bank loan of USD100,000,000, equivalent to RMB616,950,000 yuan; since December 10, 2020, the World Bank agreed to reduce the amount of loan for the project by USDI5,000,000, after adjustment, the amount of loan was USD85,000,000.The total planned investment of the project has been adjusted to RMB784,000,000 yuan, including the World Bank loan of USD85,000,000, approximately equivalent to FJVIB569,500,000 yuan. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of Project Management Office of Guilin, Guilin Water Supply Co., Ltd (original Guilin Water Supply Company), Guilin Sewage Company, Guilin Ecological Environment Pollution Source Monitoring Center (original Guilin Environmental Automatic Monitoring Management Office) as well as the Special Account set in the Finance Department of Guangxi Zhuang 16 Autonomous Region. 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 Project (Caijizi [2000] No.13). 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 December 31, 2021 of the People's Bank of China, which is USDl= RMB6.3757 yuan. 4. Explanation of Subjects 4.1 Total Project expenditures The project expenditure in 2021 was RMB66,498,642.55 yuan, and the cumulative expenditures were RMB624,819,636.15 yuan, which accounted for 79.67% of the total investment plan. 4.2 Cash and Bank On December 31, 2021, the balance was RMB35,222,773.78 yuan with a decrease of RMB45,287,753.67 yuan compared with that of the last year. And the funds in the Special Account were converted to RMB31,752,489.96 yuan. 4.3 Prepaid and Receivable On December 31, 2021, the balance was RMB2,286,594.60 yuan, mainly the prepaid project payment in engineering, migrant workers' wage guarantee, and so on. 4.4 Project Appropriation Funds 17 On December 31, 2021, the balance was RMB128,668,865.24 yuan, of which the counterpart funds appropriated by government was RMB28,056,731.15 yuan; funds self-raised by enterprises was RMB100,612,134.09 yuan. 4.5 Project Loan On December 31, 2021, the balance was RMB522,464,640.57 yuan, including the IBRD loan of USD76,190,009.03, equivalent to RMB485,764,640.57 yuan; domestic loans of RMB36,700,000.00 yuan. By the end of December 31, 2021, accumulated USD76,190,009.03 of the World Bank loan had been withdrawn, accounting for 89.64% of the total, of which the category of water supply sub-project, goods and consulting services cumulated withdrawals were USD25,099,354.30, accounting for 83.66% of the category plan; the category of waste water, sludge management sub-project and goods cumulated withdrawals were USD39,558,878.56, accounting for 74.55% of the category plan; category of Guilin water quality monitoring sub-project, goods and consulting services cumulated withdrawals were USD685,090.36, accounting for 100% of the category plan; the category of capacity building sub-project, consulting service, non-consulting services, goods, training, workshop and IOC cumulated withdrawals were USD596,685.81, accounting for 59.67% of the category plan; front end fee of USD250,000.00; working capital of USD10,000,000.00. 4.6 Payable On December 31, 2021, the balance was RMB11,118,962.14 yuan, mainly due to unpaid project quality retention money, project fund, petty loan, commitment fee and interest paid in advance by finance, etc. 4.7 Retained Earnings On December 31, 2021, the balance was RMB76,536.58 yuan, mainly interest earned of the Special Account deposit. 5. Special Account The Special Account of this project is set in Nanning Branch of Industrial Bank Co., Ltd., with the account number of 552011400100022199, and USD as currency unit. The initial deposit of the Special Account was USD5,000,000.00, and an additional imprest fund of USD5,000,000.00 was added in 2019, so the outstanding amount advanced to the Special Account at the end of this period was USD10,000,000.00. The beginning balance of 2021 was USD10,010,834.35 and the reimbursement in the year was USD6,148,537.94. This year the interest earned was USD954.07 and the disbursement was USD11,180,066.47 and the expenditure of service charges was USD24.00. Amount claimed but not yet credited at the end of this period was USD5,031,528.53. Thus, the ending balance was USD4,980,235.89. 6. Other Explanation for the Financial Statements Due to the change of foreign exchange rate, there are discrepancies between the difference of the beginning and ending balance of the IBRD 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. 19 l { 三、审计发现的问题及建议 扩 审计发现的问题及建议髦 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 管理情况及项目绩效、上一年度审计发现问题及建议整改落实情况。我们 发现在财务核算、资金管理、工程招投标、提款报账等方面，相关控制制 度能有效执行，但存在如下问题： ( （一）项目管理方面存在的问题； 财务管理不规范，涉及金额人民币7,749.73万元。 2021年11月，桂林市自来水有限公司将已进行工程结算但未进行竣犷 工决算的桂林市机场路供水管道加压泵站工程项目作为“交付使用固定资歇 产”入账，不在公司机场路北侧管道工程项目账中继续反映，造成少计交 付佼用资产人民币7,4 63.56万元。此外，该公司2021年度未将世行贷款 利息及扼诺费人民币286.17万元，在世行贷款专账核算，造成少计在建l 工程人民币286.17万元。审计指出后，桂林自来水公司已调整报表，但毛 尚未进行账务调整。 上述做法，不符合《中华人民共和国会计法》第九条“各单位必须根 据实际发生的经济业务事项进行会计核算，填制会计凭证，登记会计账簿，、 茎 簖制财务会计报告”和财政部《国际金融组织和外国政府贷款赠款管理办是 法》（2016年财政部第85号令）第三十条“项目实施单位应当按照国家 财务会计制度和具体的贷款项目财务会计管理规定，负责贷款项目的财务 管理和会计核算，建立健全内部财务会计制度”的规定。建议你办督促桂 林市自来水公司依照《中华人民共和国会计法》《国际金融组织和外国政｛ 府贷款赠款管理办法》的相关规定进行财务处理，确保全面、真实反映项乞 目建设情况。 （二）项目绩效方面存在的问题： } 气 豪 20: 龟＿ 犷 导 ( 个别子项目竣工结算缓慢。 犷桂林市排水有限公司负责实施的桂林市环境综合治理项目共有16个 龟工程项目，2022年2月已全部竣工并投入使用，合同金额共计人民币 34,9 63.10万元，由于施工单位结算资料提供不及时，截至2022年5月， 有8个子项目未完成竣工价款结算，涉及金额人民币26,125.86万元。 黔上述做法，不符合财政部《基本建设财务规则》（2 016年财政部第 熟81号令）第二十八条“项目建设单位应当严格按照合同约定和工程价款 结算程序支付工程款。竣工价款结算一般应当在项目竣工验收后2个月内 完成，大型项目一般不得超过3个月”的规定。建议你办督促桂林排水公 司及时与施工单位收集结算资料，早日完成竣工价款结算。你办已接受审 计建议。 （三）上一年度审计发现问题整改情况 审计发现，上一年度审计报告中披露的个别子项目推进缓慢、工程物 资闲籮等两个问题已整改完毕。 f于 全 号 乳、 犷｝ { 噜 弋夕 蒙 毛 红 { 靛＿21 III. Audit Findings and Recommendations Audit Findings and Recommendations In addition to performing the audit and expressing an opinion on the financial statement, 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 control, program management and program performance. We found that in compliance with aspects of financial accounting, fund management, project tendering and withdrawal & reimbursement etc., the relevant control system have been effectively implementing, but issues are included as follows: Issues on project management Non-standard financial management, involving an amount of RMB77,497,300.00 yuan. In November 2021, Guilin Water Supply Co., Ltd. recorded the project of Guilin Airport Road Water Supply Pipeline Booster Pumping Station Project, which has finished construction settlement but has not settled final account procedures, as a fixed asset for delivery, and did not continue to reflect it in the company's account of Airport Road North Pipeline Project, resulting in undercounfing the assets for delivery of FJ\4B77,497,300.00 yuan. Besides, the company did not take the loan interests receivable and commitment fees of the World Bank loan of RMB2,861,700.00 yuan into special accounting in 2021, resulting in undercounting the construction in progress of RMEB2,861,700.00 yuan. After audit, Guilin Water Supply Co., Ltd. adjusted its financial statements but did not adjust its accounting. The above practice did not conforrn to the regulations of Article 9 of The ,4ccounting Law of People's Republic of China, which stipulates that all units must fulfil accounting practice, fill in and prepare accounting documents, record account books and work out financial accounting statements according to the economic and business transactions actually taken place, and did not comply with the rules of Article 3 0 of Management Methods for International Financial organizations and Foreign Governments Loan and Grant (Order No.85 of the Ministry of Finance, 2016), which stipulates that the project implementation units shall follow the national financial and accounting system and the financial and accounting management regulations of specific 22 loan projects, be responsible for the financial management and accounting of loan projects and establish and improve the internal financial accounting system. We suggested that your office supervise and urge Guilin Water Supply Co., Ltd. to conduct financial processing in accordance with the relevant provisions of The Accounting Law of People's Republic of China and Management Methods for International Financial organizations and Foreign Governments Loan and Grant, and ensure complete and real reflection of the project construction. Issues on project performance Individual sub-project made slow progress in achieving completion settlement. Guilin Drainage Co., Ltd was responsible for the implementation of 16 projects in total of Guilin Environmental Comprehensive Treatment Project, which has been fully completed and put into operation in February 2022, with a total contract amount of RMB349,63 1,000.00 yuan. Due to the delay of settlement data provided by the construction unit, as of May 2022, there were eight subprojects that did not settle completion of price, involving an amount of RMB261,258,600.00 yuan. The above practice did not conform to the rule of Article 28 of Financial Regulations of Fundamental Construction (Order No. 81 of the Ministry of Finance, 2016), which stipulates that the project construction unit shall disburse the project payment in strict accordance with the contract agreements and the project price settlement procedures. Project's completion of works and prices shall be settled generally within two months after inspection and acceptance of construction works finished, and three months shall not be exceeded generally for large-scale project. We suggested that your office supervise and urge Guilin Drainage Co., Ltd to collect settlement data timely, and achieve completion settlement of price with the least delay. Your office accepted the suggestion. The Followed-up of previous recommendations Through audit we found 2 issues disclosed in the audit report of previous year, i.e. the implementation of individual sub-projects made slow progress, and the annual work plan of the project was not completed, were followed up. 23 Р. � г i t Э' , ^ ; Г 1 ( г � . Ё ,, � : t i ! ' ! t �