Liaoning Provincial Audit Office of the People's Republic of China Audit Report iT W a&# C2017J 24 - LIAO AUDIT REPORT C 2017 ) NO.24 Project Name: Liaoning Coastal Economic Zone Urban Infrastructure and Environmental Management Project financed by World Bank &#: 8236-CN Loan No.: 8236-CN Project Entity: Liaoning Provincial Finance Department & LDRC Foreign Fund Utilization Project Office 2016 Accounting Year: 2016 目录 ContentS 一、审计师意见，,.,.．…，……，............．……，…，,.,,.．……，.................．……，.．……，.3 1 .Anditor& 5 Opinion二，…，，……，，二，.......................................．……，．·，·········……5 二、财务报表及财务报表附注．........................................................．……7 11 .Financia[Statements and Nbtes to the Financial Statemeflts ........．……7 〔一）资金平衡表二，…，.．……，……，．……，........．……，．……，,．…，.．…，，二，．…7 1 .Balance Sheet,.．…，，二，,..............................................................．……7 （二）项目进度表．.................................................................．……10 11.Summary of Sources and Uses ofFunds by Project ComPonent 10 （三）贷款协定执行情况表．..........................．……，二，二，…，.,,．…，二，.12 iii,Statement oflmplementation ofLoan Agreement..............．……12 （四）专用账户报表．.......．……，.,.,,，二，.，二，................................．……13 iv .Special Account Statement...．……，.......．……，.．……，二，……，,.,．…，,.,.13 （五）财务报表附注，,.,.．…，,,,..........................．……，.....．……，..．……巧 v .Notes tothe Financial Statements二，,..............................．……，二，二18 三、审计发现的问题及建议．......................．……，．……，....................．……22 111.Audit Findings and Recolnlnendations,...............．……，……，........．……，24 一、审计师意见 审计师意见 辽宁省财政厅、辽宁城市和发展改革委员会利用外资项目办公室： 我们审计了世界银行贷款辽宁沿海经济带城市基础设施和环境 治理项目2016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7页至第18页）o （一）省项目办对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表、贷款协定执行 情况表和专用账户报表是辽宁省财政厅的责任，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，并使其实现公允反映； 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作出会计佑计的合理性，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 3 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 贷款辽宁沿海经济带城市基础设施和环境治理项目2016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执 行情况。 （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3、4、5、6、 7号提款申请书及所附资料。我们认为，这些材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。 ＿气一、犷 中华沁爵忆：扫国、宁巍奋厅 二O护年六月二魂四日 地址：中国辽宁沈阳市皇姑区北陵大街45一1号 邮政簖码：110032 电话：86一24一8689 2625 传真：86一24一8689 3670 4 1. Auditor's Opinion Auditor's Opinion To Liaoning Provincial Finance Department & LDRC Foreign Fund Utilization Project Office We have audited the special purpose financial statements (from page 7 to page 18) of Liaoning Coastal Economic Zone Urban Infrastructure and Environmental Management Project financed by World Bank which comprise the Balance Sheet as of December 31, 2016, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. Liaoning Provincial Finance Department's Responsibility for the Financial Statements Your entity is responsible for the preparation of the financial statements mentioned above, 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 ftee 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 5 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 Liaoning Coastal Economic Zone Urban Infrastructure and Environmental Management Project financed by World Bank as of December 31, 2016 its financial receipts and disbursements and the project implementation for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement. Other Matter We also examined the withdrawal application from No.3 to No.7 and the attached documents submitted to the World Bank during the period. In our opinion, the attached 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. Liaoning Provincial Audit Office June 24, 2017 V 44 -P. Address: o45-1 Beiling Street, Huanggu Distnct, Shenyang, Liaoning, China Postcode: 110032 Tel.: 86-24-86892625 Fax:86-24-86893670 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 6 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2016 4- 12 A 31 11 (As of December 31, 2016) 4 At33it U i 7A£Is 4 3At*V4TA iA9R Project Name: Liaoning Coastal Economic Zone Urban Infrastructure and Environmental Management Project financed by World Bank Wg*t: *17,-: A R P t Prepared by: Liaoning Provincial Finance Dpartment Currency nit: RMB yuan Line Beginning Line Beginning Application of Fund Ending Balance Sources of Fund Ending Balance No. Balance No. Balance H WOZ*it Total -' 13lfiAWtTotal 69,770,214.62 357,638,388.46 Project Appropriation 28 102,896,208.53 137,895,375.36 Project Expenditures Funds l, W{WfiPFixed M,R Project Capital and 29 - Assets Transferred 2 Capital Surplus Construction Expenditures to 30 - Including:Grants be Disposed 3 3. Vl&iV Investment VR % RfiAW Total 31 8,928,700.00 245,268,199.37 Transferred-out 4 Project Investment Loan 4, TEIRIW Construction in 1, Total 69,770,214.62 357,638,388.46 32 8,928,700.00 245,268,199.37 Progress Project Investment Loan (1) M*f& Foreign InvestMents Loan 33 8,928,700.00 245,268,199.37 Loan Receivable 6 9:p al45fthR R Including: World Bank 34 - Including: IDA Investment Loan Receivable 7 Appropriation of Investment -- TfFWR;fr 35 8,928,700.00 245,268,199.37 Loan 8 IBRD Including: Appropriation of R MPVRff Technical 36 World Bank Investment 9 , Cooperation 7 r MIA ff& MMR Line Beginning Line Beginning Application of Fund Ending Balance Sources of Fund Ending Balance No. Balance No. Balance Loan Ilis t Equipment 37 10 l145iit Co-Financing (2) VnE{%ll Domestic Including: Equipment Losses .38 Loan in Suspense II 31f. fkitif bit Total 64,017,684.62 58,025,95851 2, 4A{ft'R Other Loan 39 - Casi and Bank 12 la ±@At4WfR l. W44$ Cash in Bank 64,012,516.12 58,017,96951 Appropriation of 40 - 13 Investment Loan RP:~~-lp Mk1i-MM@ 1At A 3,365,540.15 3,451,799,52 Including: World Bank 41 Including: Special Account 14 Loan li. A1flf4f Bond 2, MEA& Cash on Hand 5,168.50 7,989.00 42 15 Fund Total Prepaid and 12,709,287.95 11,516,420.46 Construction 43 - Receivable 16 Expenditures to be Offset 4trt: MATWhAJA -h' IM*11i Total Including: World Bank Loan 44 34,670,610.07 44,017,272,69 Interest Receivable 17 Payable ~All~rci~ M-Alp-t ,AJ Including: World World Bank Loan I - 45 - Bank Loan Interest Commitment Fee Receivable 18 Payable World Bank Loan World Bank Loan 46 Service-Fee Receivable 19 Commitment Fee Payable -lG ;MffEi Marketable - !h World Bank Loan 47 Securities 20 Service Fee Payable A. l iWF@i Total A, ARttit Other 48 - Fixed Assets 21 Payables [95Z IM fft Fixed Assets, Fi9. & XVi* 49 Cost 22 Appropriation of Fund 9: ZiftIl Less: +, MIRA Retained Accumulated Depreciation 23 Earnings 50 1,668.59 - 1 r411 Fixed Assets,Net 24 8 슨 9 v c, 10 ý0 00 00 16 00 r4 m 0 10 0 ý0 01 01 N 10 a, i t -: i 9N n n OG 10 %0 ý0 01 01 kn r4 tq in 0 N -5 -i ti cý n n lcý . n q u M In vý cm r- -) = " ýQ 00 r- t4 0 0 0 C> 0 00 0 0 0 C C V c3 0 0 0 0 0 0 0 q Ct q cý 0 c> C) cn CN 0, -c 2- CL M M 10 10 ý1 19 01 r V) E cl Cý cý q -T 1 w - 9 0 c4 -c N rA n In c; u V) In vi cm 10 v 10 Kn 0 r, t-: L-ý cj 6 0, QQ 10,0 CM 2 > 0 cH m El 14 > 't 00 -e ig 0 lik å go-, 9 r u. 8 t: K å ä con 0 QHg 'ä 11 a o ä -1,4 r d Fpi trä 0 Lä -p -2 =1 4 u u :t2 W ok( u :3 ik! ýK 4ý lä 9 0 m 3X 15 ci <4 JåK IT ！劇· in C> C5 r- c> <> en w Ln C9 1 0,1 V-ý -c rq ;td ýt % CIA r oc C> 4) CD C> C:5 r,, CD r_ a. 2 a (i < å 9 -a >0 0 rej -2 > MZ ca H 1? cu Z :PIR Cd JIP 4ý1 4rý, 29 iv. Special Account Statement SPECIAL ACCOUNT STATEMENT *MfR l 2016 * 12 A 31 Ef (For the period ended December 31, 2016) Project Name: Liaoning Coastal Economic Zone Urban Infrastructure and Environmental Management Project financed by World Bank RAJuW: 8236-CN Loan No.8236-CN Prepared by: Liaoning Provincial Finance Department Depository Bank: Heping branch of Agricultural Bank of China J0K-: 06135014040000738 Account No. : 06135014040000738 Currency : USD Part A-Account Activity for the Current Period Amount 518,285.72 Beginning Balance John11: Add: tW33,981,511.37 Total Amount Deposited this Period by World Bank *MPAAMM (WAtNMPS6 *M*Jt1kA6zR2,995.07 Total Interest Earned this Period if Deposited in Special Account Total Amount Refunded this Period to Cover Ineligible Expenditures Deduct: *10milp1m34,001,947.58 Total Amount Withdrawn this Period Total Interest Withdrawal 3,252.03 Total Service Charges this Period if not Included in Above Amount Withdrawn M**9 497,592.55 Ending Balance4 U(jr To be continued) 13 Part B-Account Reconciliation Amount 1. tMtf& A Amount Advanced by World Bank 1,000,000.00 Deduct: 2. tWWHRA Total Amount Recovered by World Bank .9,000,000.00 Outstanding Amount Advanced to the Special Account at the End of this 10,000,00.00 Period 4. tmRMAAM Ending Balance of Special Account 497,592,5 Add: Amount Claimed but not yet Credited at the End of this Period 9,502,407.45 Application No. Amount 8326-CN0028 8326-CN0028 745,722.33 8326-CN0031 8326-CN0031 . 45,357,77 8326-CN0033 8326-CN0033 45,867A0 8326-CN0032 8326-CN0032 31.,087.91 8326-CN0034 8326-CN0034 28,539.72 8326CN0035 8326-CN0035 40,261.38 8326-CN0027 8326-CN0027 1.041,571.12 8326-CN0037 8326-CN0037 621,030.84 8326-CN0036 8326-CN0036 433,896.12 8326-CN0029 8326-CN0029 1,406,745.99 8326-CN0038 8326-CN0038 5,062,326.87 6. tig Amount Withdrawn but not yet Claimed at the End of this Period 7. hR*kj%it3ZW4 Wil*k;1'E 5 (6f '9) Cumulative Service Charges (If not Included in Item 5 or 6) Deduct. 8. 9IARA (kAfEPSA) Interest Earned (If Included in Special Account) Total Advance to the Special Account Accounted for at the End of this Period 14 （五）财务报表附注 财务报表附注 1．项目概况 辽宁沿海经济带城市基础设施和环境管理项目（以下简称“本项目”) 于2013年3月20日获得世行董事会批准，我国政府于2013年5月20 日正式与世界银行签订该项目的《贷款协定》，获得世行贷款1.5亿美元， 贷款号为8236一cN。本项目的主要目标指导城市和经济群附近的发展进程 并帮助保护有价值的生态系统并打造具备更好公共服务的宜居城市以吸 引人口和投资。预期的项目成果是改善沿海经济带城市的城市交通和城市 污水处理和中水回用．项目预计2018年9月30日完工，2018年9月30 日关账。项目计划总投资在中期调整后为预计为2.2718亿美元，其中世 行贷款额1.5亿粎元，其余为国内配套资金。 项目实施机构包括： 。东港市市政管理处 。宽甸满族自治县城乡建设房地产开发有限公司 。盘锦市公共交通有限公司 。凌源市市政管理处 。凌源市应急供水建设管理处 2，财务报表编制范围 本财务报表的簖制范围包括5个子项目的财务报表及省财政厅专用 账户报表。其中龙城道路建设和绥中排水改造子项目退出，两个项目的核 定贷款金额和配套资金转入未分配科目。按照财政厅提供的专用账户对账 单调整合并了财政厅的报表。 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。 l5 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2016年12月31日汇率折算，即USDI＝人民 币6 .9370元。 4，报表科目说明 4.1项目支出 20 16年项目支出人民币287,868,173,54元。截至2016年12月31日， 项目累计支出人民币357,638,385.46元，占总投资计划的25.20％。 4.2货币资金 2016年12月31日货币资金余额为人民币58,025,958.51元，其中专 用账户存款折合人民币3,451,799.52元。 4.3预付及应收款 截至20 16年12月31日预付及应收款余额为人民币11,5 16,420.46元， 为凌源市城市排水及再生水回用工程项目和凌源市道路，桥梁项目的工程 预付款以及宽甸的预付工程及设备款。 4.4项目拨款 2016年12月31日余额为人民币137,895,375.36元，是省、市、县各 级到位的配套资金，占总计划额的28.64%．项目计划配套资金总额为人 民币481,530,000.00元。 4.5项目借款 2016年12月31日余额为人民币245,265,1 19.37元，其中；世行贷款 额为35,356,511.37粎元，折合人民币245,268,119.37元。 l6 截至20 16年12月31日，累计提取世行贷款资金35,3 56,5 11,37美元， 占贷款总额的26.16％。 4.6应付款 截至20 16年12月31日为止应付款余额为44,0 17,272.69元。 4.7留成收入 2016年12月31日余额为人民币0.00元。 5．专用账户使用情况 本项目专用账户设在中国农业银行沈阳和平支行，账号为 06 135014040000738，币种为粎元。专用账户首次存款l,000,000.00美元。 期初初余额为518,285.72粎元，本年度回补33,981,511.37美元，本期利 息收入2,995.07粎元，本期利息提取为3,252.03美元，本期支付 34,001,947.58粎元，年末余额497,592.55美元。 6．其他报表说明事项 项目资金平衡表中亚行贷款期末数与期初数之差与项目进度表中相 应本期发生额及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。 17 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview Liaoning Coastal Economic Zone Urban Infrastructure and Environment Management Project( hereinafter referred to as 'Project' )is approved by board of director of World Bank (hereinafter referred to as 'WB') on March 201h 2013. And, The government of the People's Republic of China officially signed the Loan Agreement with VVB on May 20th 2013, which stipulated that WB provides USD 150 million loan for the implementation of the Project. The WB Loan Number is 8236-CN. The project aims to improve traffic efficiency and solve water shortage problems of coastal cities in Liaoning Coastal Economic Zone Urban. The expected achievements of the Project are the improvements of urban transportation and wastewater treatment and reuse of reclaimed water. The Project is expected to be completed by 30 September 2018. The loan closing date is 30 September 2018. The total investment plan of the project after mid-term adjustment is USD 227,187,200.00, arnong which the WB loan amount is USD 150,000,000.00, and the rest are domestic counterpart funds. The implemental institutions include: " Donggang City: Donggang Municipal Administration Department; " Kuandian County: Kuandian Rural-Urban Real Estate Construction and Development Company, Ltd. " Panjin City: Panjin Public Transport Company, Ltd; " Lingyuan City: Lingyuan Municipal Administration Department; " Lingyuan City: Lingyuan Emergency Water Supply and Administration Department. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of five subprojects, as well as the Designated Account set in the Liaoning Provincial Department of Finance. The consolidated statements of Liaoning Provincial Department of Finance are confirmed with Designated Account statement provided by the department. 3. Accounting Policies 3.1 The Financial Statements of the Project were prepared according to the requirements of Accounting Methods for the World Bank Financed Project (Cafiizi[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 Yuan is used as the recording currency for bookkeeping. 3.4 The exchange rate used in the financial statements was the exchange rate on December 31, 2016 of the People's Bank of China, which is USDl= RMB 6.9370 Yuan. 4. Explanation of Subjects 4.1 Project Expenditures The Project Expenditure during 2016 was RMB 287,868,173.84 Yuan. By the December 31, 2016, the cumulative expenditures were RMB 357,638,388.46 Yuan, which accounted for 25.41% of the total investment plan. 4.2 Total Cash and Bank On December 31, 2016, the balance of cash in the bank and on hand was totally RMB 58,025,958.51 Yuan, among which the amount in the Designated Account was RMB 3,451,799.52 Yuan 4.3 Prepaid Payment and Receivable 19 The account balance on December 31, 2016 was RMIB 11,516,420.46 Yuan which was the construction advance payment for the Lingyuan Urban Municipal Drainage and Recycling Water Reuse Project and Lingyuan City Municipal Administration Path and Bridge Project, and advance of Kuandian subproject. 4.4 Project Appropriation Funds The balance on December 31, 2016 was RMB 137,895,375.36 Yuan, which was the counterpart fund contributed by all levels including the province, the subproject cities and the counties, which accounted for 28.64% of the total counterpart fumd. The total planned counterpart funds of the Project were RMB 481,530,000.00 Yuan. 4.5 Project Loan The balance on December 31, 2016 was RMAB 245,268,119.37 Yuan, among which, the WB loan was USD 35,356,511.37, equivalent of RMB 245,268,119.37 Yuan. By the end of December 31, 2016 the accumulative withdrawn amount from the WB loan was USD 35,356,511.37, accounting for 26.16% of the total loan amount. 4.6 Payable The balance on December 31, 2016 was RMB 44,017,272.69 Yuan. 4.7 Retained Earnings The balance on December 31, 2016 was RMB 0.00 Yuan. 5. Designated Account The Designated Account in US dollar has been established for the Project in Liaoyang Heping branch of Agriculture Bank of China, with the account number 06135014040000738. The initial deposit to the Designated Account is USD 1,000,000. The beginning balance was USD 518,285.72 and the replenishment amount in 2016 was USD 33,981,511.37. This interest earning and withdrawal in 2016 was USD 2,995.07 and USD 3,252.03, respectively. 20 The total disbursement during this period was USD 34,001,947.58. The ending balance was USD 497,592.55 6. Other Statements Because of the accumulated exchange gains and losses over the past years, the differences between ADB loan ending in balance and beginning in the balance sheet is not consistent with both the actual amounts during the current period in the table of "summary of sources and uses of funds by project component" and the withdrawal amounts during the current period in the table of "statement of implementation of the Loan Agreement". 21