3 0 JUN 2018 Fujian Provincial Audit Office of the People's Republic of China Audit Report A*$4#(E C2018) 37 - MINAUDITREPORT C2018) No.37 Project Name: Fujian Meizhou Bay Navigation Improvement Project Financed by the World Bank : 8227-CN Loan No.: 8227-CN Project Entity: Fujian Meizhou Bay Harbor Administration Bureau 2017 Accounting Year: 2017 目录 ContentS 一、审计师意见．..........................................................................．……，.．…l 、全 1 .A-u ditor,5 Opini0n..............................．……，.........．……，....．……，．…，...．……，.3 二、财务报表及财务报表附注．........................................................．……5 11.Fin日ncial State扭ents and NoteS to thC FinallCiai StatCmentS..........．……5 （一）资金平衡表．..............................．……，.....．……，…，......．……，…，…，…，二5 1 .Balance Sheet..................................................．……，……，................．……5 （二）项目进度表．．…，．…，…，二，,......................................................．……，．…7 11.Sulnmary of Sources and Uses of Funds by Project Component...．……7 （三）贷款协定执行情况表．……，……，.．…，...........．……，……，.，二，.........．……9 111 .Statement of ImPlementation of the Loan Agreement……，............．……9 （四）指定账户报表．...............................................．……，.．…10 iv .D esignated Account Statement.........................．……，．…，…10 （五）财务报表附注．..．……，.,．…，.,.,.,............................．……11 v.Notes to the Financial Statements .....．……，.,.,.,................．……15 三、审计发现的问题及建议．...............................．……，二，二，二，,.．…19 111.Audit Findings and Recommendations ...............................．……，，二，.21 从 一、审计师意见 审计师意见 福建省涓洲湾港口管理局： 我们审计了世界银行贷款福建涓洲湾航道工程项目2017年12月31 日的资金平衡表及截至该日同年度的项目进度表、贷款协定执行情况表和 指定账户报表等特定目的财务报表及财务报表附注（第3页至第H页）。 （一）项目执行单位及福建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 表是你单位的责任，簖制指定账户报表是福建省财政厅的责任，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 性和作出会计估计的合理性，以及评价财务报表的总体列报。 我们相信，我们获取的审计证据是适当的、充分的，为发表审计意见 提供了基础。 l （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福 建涓洲湾航道工程项目2017年12月31日的财务状况及截至该日同年度 的财务收支、项目执行和指定账户收支情况。 （四）其他事项 我们还审查了本期内报送给世界银行的第7号提款申请书及所附资 料。我有1认为，这些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／娜· 地址：中国福建省福州市华林路201号 邮政簖码：350003 电话：86一591一63396262 传真：86一591一63396260 2 1. Auditor's Opinion Auditor's Opinion To Fujian Meizhou Bay Harbor Administration Bureau (MBHAB): We have audited the special purpose financial statements (from page 3 to page 11) of Fujian Meizhou Bay Navigation Improvement Project'financed by the World Bank, which comprise the Balance Sheet as of December 31, 2017, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan Agreement and the Designated Account Statement for the year then ended, and Notes to the Financial Statements. 1. Project Entity and Fujian 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 Designated Account Statement is the responsibility of Fujian Provincial Finance Department (FPFD), 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. 2. 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 statements in order to design audit procedures that are appropriate in the circumstances, but 3 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. 3. Audit Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Fujian Meizhou Bay Navigation Improvement Project financed by the World Bank as of December 31, 2017, its financial receipts and disbursements, the project implementation and the receipts and disbursements of designated account for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement. 4. Other Matter We also examined the No.7 withdrawal application and the attached documents submitted to the World Bank during the period. In our opinion, those statements 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. Fujian Pr cia di Offi of the People's Republic of China Jun.29, O1 Address: No.201 Hualin Road ,Fuzhou, P.R. China Postcode: 350003 Tel.: 86-591-63396262 Fax: 86-591-63396260 4 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2017 4 12)A 31 Hl (as of Dec 31, 2017) 0 .4U 0: A&i41. U Statement I PROJECT NAME:Fujian Meizhou Bay Navigation Improvement Project Financed by the World Bank PREPARED BY:Fujian Meizhou Bay Harbor Administration Bureau Currency Unit: RMB Yuan Application of Fund Line No. Beginning Balance Ending Balance 6 -I tit Total Project Expenditures 1 440,601,774.95 471,986,147.16 1. 44 JU Fixed Assets Transferred 2 2. 14*A#i S A Construction Expenditures to be Disposed 3 3. Offl& W Investments Transferred-out 4 4. nII¶V Construction in Progress 5 440,601,774.95 471,986,147.16 S Investment Loan Receivable 6 Including:World Bank Investment Loan Receivable , OA Appropriation of Investment Loan 8 W1H: ~&44M49 Including:Appropriation of World Bank Investment Loan M 9 +4 Equipment 10 ArP: 40i-tL WNO&4IZ 11 Including:Equipment Losses in Suspense l., i t Total Cash and Bank 12 82,802,434.51 48,555,687.57 1. VlflYX Cash in Bank 13 82,802,434.51 48,555,687.57 itt: 4 14 494,221.43 19,535.04 Including:Designated Account 2. I Cash on Hand 15 As . Total Prepaid and Receivable 16 20,320,595.89 33,833,321.70 it TA±ff iAM* 17 Including: World Bank Loan Interest Receivable 18 World Bank Loan Commitment Fee Receivable World Bank Loan Service-Fee Receivable t K1iE# Marketable Securities 20 }A, IMAMt i Total Fixed Assets 21 - - MZiVtT Fixed Assets, Cost 22 4 Wi tCI 23 Less: Accumulated Depreciation EtZ4f {iFixed Assets, Net 24 Z*Iit Fixed Assets Pending Disposal 25 %WE[9%Aff4R9 Fixed Assets Losses in Suspense 26 15l Arffi6i Total Application of Fund 27 543,724,805.35 554,375,156.43 5 BALANCE SHEET (continued) 2017 * 12 A 31 E (as of Dec 31, 2017) Statement I (continued) PROJECT NAME:Fujian Meizhou Bay Navigation Improvement Project Financed by the World Bank PREPARED BY:Fujian Meizhou Bay Harbor Administration Bureau Currency Unit: RMB Yuan Sources of Fund Line No. Beginning Balance Ending Balance SRRkXtit Total Project Appropriation Funds 28 352,100,000.00 261,038,400.00 Project Capital and Capital Surplus p: Mo30 Including: Grants 3 01 , 2 R PMA"it Total Project Loan 31 147,766,389.36 140,101,056.04 1. JP Ri * #k# Total Project Investment Loan 32 147,766,389.36 140,101,056.04 (1) IkOR Foreign Loan 33 147,766,389.36 140,101,056.04 AP: MV;TfftRi1 # Including:IDA 34 1M P1YN3f*Wf IBRD 35 147,766,389.36 140,101,056.04 I&##{2 Technical Cooperation 36 V*MM Co-Financing 37 (2) 1m rK Domestic Loan 38 2. ZTh@A Other Loan 39 V Lt AXiZl Appropriation of Investment Loan 40 Iaf&tITRew41 Including: World Bank Loan H, W1tk4# ± Bond Fund 42 # tfl Construction Expenditures to be Offset 43 -Lt. &{ i Total Payable 44 43,856,579.00 153,233,812.00 45 Including:World Bank Loan Interest Payable r±tilAIrGRERir Yk 46 World Bank loan Commitment Fee Payable )V-1ftqf6 q r fl t47 World Bank Loan Service Fee Payable A A ZYRk itOther Payables 48 ft 1 ~r 4 AAppropriation of Funds 49 MAA Retained Earnings 50 1,836.99 1,888.39 MAAHAi Total Sources of Fund 51 543,724,805.35 554,375,156.43 J 4# 5-*Rff6-%t Aiff} (The notes are integral parts of the financial statements) 6 ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I ,*M#9 2017 * 12 9J 31 l (For the Period Ended Dec 31,2017) $ 2-1 tatement II-1 8 44: AM~1 i4MO U PROJECT NAME:Fujian Meizhou Bay Navigation Improvement Project Financed by the World Bank 4i: A. ff 7 94K*Ji: 4 MtYCVit 540 3 . PREPARED BY:Fujian Meizhou Bay Harbor Administration Bureau Currency Unit: RMB yuan * JI Current period A i- Cumulative Project Component Current Period Cumulative Current Year Budget Current Period Actual Completed % Life of PAD Cumulative Actual Completed % VE4-*X* Total Sources of Funds 135,960,000.00 -98,726,933.32 -72.61% 874,424,800,00 401,139,456.04 45.87% I M s TttLKRMIrt International Financing 135,960,000.00 -7,665,333.32 -5.64% 316,500,000.00 140,101,056.04 44,27% 1, IBRD 135,960,000.00 -7,665,333.32 -5.64% 316,500,000.00 140,101,056.04 44.27% 2, IDA fl.. !kCounterpart Financing - -91,061,600.00 #DIV/0! 557,924,800.00 261,038,400.00 46.79% 1, 741KRE * Other Loan 2, BPE2 & Appropriation Funds - -91,061,600.00 #DIV/01 557,924,800.00 261,038,400.00 46.79% 5 11##m*t Total Application of Funds 80,160,000.00 31,384,372.21 39.15% 874,424,800.00 471,986,147.16 53.98% (*J;i Hl by Project Component) I. IN Civil Works 72,200,000.00 34,136,660.00 47.28% 724,281,200.00 446,101,585.00 61.59% (1) A- Dredging 13,180,000.00 10,356,727.00 78.58% 434,382,400.00 352,492,373.00 81.15% (2) Y130 Reef Blasting 59,020,000.00 23,779,933.00 40.29% 288,681,600.00 93,609,212.00 32.43% (3) A*, Buoys 295,300.00 0.00% (4) M±Il Anchorage Ground 922,000.00 0.00% 2, Wi1t]l,- 4FiJI Consulting Service &Training 2,760,000.00 2,550,651.00 92.41% 20,933,600.00 11,082,997.00 52.94% (1) ifJiR4 Consulting Service 2,110,000.00 2,126,060.00 100.76% 14,603,600.00 5,611,895.00 38.43% (2) A iI Training 650,000.00 424,591.00 65.32% 6,330,000.00 5,471,102.00 86.43% 3, A-t Others 5,200,000.00 -5,302,938.79 -101.98% 129,210,000.00 14,801,565.16 11.46% rA Difference -130,111,305.53 -70,846,691.12 1, MMMt# 4 Change in Receivables 13,512,725.81 33,833,321.70 2, JnP &kM 4 Change in Payables -109,377,233.00 -153,233,812.00 3, ?5i 1 Change in Cash and Bank -34,246,746.94 48,555,687.57 4, AZ Other -51.40 -1,888.39 J (The notes are integral parts of the financial statements) 7 SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT II * J 9 2017 4 12 A 31 E A 2-2 Statement 11-2 (For Period Ended Dec 31,2017) k: A. R T iG S#: & 4fl Currency Unit: RMB yuan PROJECT NAME:Fujian Meizhou Bay Navigation Improvement Project Financed by the World Bank PREPARED BY:Fujian Meizhou Bay Harbor Administration Bureau ) 9 1 (Project Expenditrue) BX j4 Assets Transferred MAM9 R ] Project Component Cuuatv M g y$% ConstructionInetns Amount Copnn Cmltv Current Intangible Deferred Work in Progress Expenditures to Transferred-out Fixed Asset Asset Asset Asset be Disposed Sit Total 471,986,147.16 - - - - 471,986,068.75 1, I Civil Works 446,101,585.00 - - - - 446,101,585.00 (1) irlb& Dredging 352,492,373.00 352,492,373.00 (2) Org Reef Blasting 93,609,212.00 93,609,212.00 (3) )tT, Buoys (4) M&il Anchorage Ground 2, ifiR. 11l891II 11,082,997.00 - - - - 11,082,997.00 Consulting Service &Training (1) Wifi9K* Consulting Service 5,611,895.00 5,611,895.00 (2) AHI11 Training 5,471,102.00 5,471,102.00 3, A' Others 14,801,565.16 - - - - 14,801,486.75 J (The notes are integral parts of the financial statements) 8 iii. Statement of Implementation of Loan Agreement STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT *9lA1 2017 *- 12 A 31 0 (For the Period Ended Dec 31,2017) A 3 ] A04,: STh YAMM l UM N U Statement III PROJECT NAME:Fujian Meizhou Bay Navigation Improvement Project Financed by the World Bank PREPARED BY:Fujian Meizhou Bay Harbor Administration Bureau Currency Unit: RMB yuan Loan Amount Current-period Withdrawals Cumulative Withdrawals Category M# USD USD RMB USD RMB 1 I02 Civil Works 48,875,000.00 21,105,227.50 137,905,777.53 2, AjU Goods 3, ifilRMU$V1I Consulting Service &Training 1,000,000.00 208,266.79 1,360,856.86 208,266.79 1,360,856.86 4, *1F- Front-end Fee 125,000.00 125,000.00 816,775.00 5, 1T*#1itli Unallocated 6, t ilk Designated Account -68,278.79 -474,737.79 2,700.66 17,646.65 AF Total 50,000,000.00 139,988.00 886,119.07 21,441,194.95 140,101,056.04 j - 1 (The notes are integral parts of the financial statements) 2017 !fJOLEtYY 6.5342 9 iv. Designated Account Statement DESIGNATED ACCOUNT STATEMENT M & E 2017 - 12 ) 31 R ( For Period Ended Dec 31,2016) Project Name: Fujian Meizhou Bay Navigation Improvement Project Financed by the World Bank Statement IV # # Loan No.: 8227-CN Depository Bank: Industrial Bank Co.,Ltd. Fuzhou Yangqiao Branch # #4A/C No.:117201400100022330 R 4fW : X)t Currency: USD -%4R*t: gAt*!fff0T Prepared by: Fujian Provincial Finance Department E-6$#: PART I Total . t3,740,000.00 Cumulative advances to end of current reporting period 2. MA± R !it fP Wt44 Cumulative expenditures to end of last reporting period 3,529,020.55 3. M ( ITAM2ff) 210,979.45 Outstanding Advance to be accounted (line 1 minus line 2) Vz%ft: PART H 4. *$ WI Z1 PKA Opening DA balance at beginning of reporting period (as of ) 71,244.26 5. N0/9: rTWM (4f) Add/subtract: Cumulative adjustments (if any) -264.81 6. k4#t Jfl)09 Advances from World Bank during reporting period 140,000.00 7. Z5, 6 ftit Addlines5and6 139,735.19 S. r ifl-VYM M (M 4 ffllM 7 ff) Outstanding advances to be accounted for (add line 4 and line 7) 210,979.45 9. 4MANERP A Closing DA balance at end of current reporting period (as of ) 2,989.66 a) Civil Work b) Goods c) Technical Assistance/Consulting Services/Training d) Operating Expenses e) Other Categories - Specify: Specify: Specify: 10. JM/9: X iiM (0M) Add/subtract: Cumulative adjustments (if any) -289.00 11. *MJV-4MVffl Expenditures for current reporting period 208,266.79 12. A 10, 11 IT-4it Addlinel0andlinell 207,977.79 13. -%9, 121-tit Addline9 and line 12 210,967.45 14. 9-9 (AP79) (M 8 4 13 ) Difference (if any) (line 8 minus line 13) 12.00 ~7$2%: PART III 15, TwiMPRt MM*4TRAM Total forecasted expenditures eligible for Bank financing for next two reporting periods 15(a). tM $iAMk] Total expenditures claimed for present reporting period 15(b). S A Total expressway expenditures claimed for present reporting period 0.00 16. A: Th)8 AM UttA I Less: Closing DA balance after adjusments 0.00 17. R 4#%4tflR Directpayments 0.00 18. Al16, 17lIMU Addlinesl6and17 0.00 19, n.t wf EPiW 2 A-51 P FTf4,1 (V 15 h% 18 I) 0.00 Cash requirement from World Bank for next two reporting periods (line 15 minus line 18) 10 （五）财务报表附注 财务报表附注 1．项目概况 世界银行贷款福建省涓洲湾航道扩建贷款项目贷款号为8227一CN。项 目协议于2013年4月巧日签订，2013年6月13日生效执行，将于2018 年6月30日前关账。世界银行贷款总额50,000,000.00美元。 1.1涓洲湾航道扩建项目 福建省涓洲湾航道扩建项目提升将有助于提高目前和规划中的涓洲 湾工业区的中镼期经济发展，与新的内陆交通纽带相连将助推海峡西岸经 济区和福建、江襼、湖南省等腹地省份的经济发展。该项目有助于中国通 过簩短内陆地区至进出口港间的平均运距、打造低耗运输体系这一目标的 实现。计划总投资574,424,800.00元，其中世界银行贷款50,000,000.00 粎元，折人民币316,500,000.00元，国内无偿配套资金557,924,500.00元。 1.2机构加强 其中，机构加强类别世行贷款安排1,000,000.00美元，包括国外培训 和国内培训两部分，主要用于提高福建交通运输系统人员的管理能力和掌 握国际先进经验。 2．财务报表编制范围 本财务报表的簖制范围包括省涓洲湾港口管理局的项目财务报表以 及省财政厅指定账户报表。 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1日至12月31日。 ll 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决算汇率按照中国人民银行2017年12月31日公布的汇率，即 USDI＝人民币6.5342元。 4．报表科目说明 4.1项目支出 20 17年l一12月项目支出人民币31,3 84,293 .50元，累计支出人民币 471,986,068.75元，占总投资计划的53.98％。 4.1.1 2017年1一12月建安工程支出人民币34,136,660.00元，累计建安 工程支出人民币446,101,585.00元，占总投资计划的61.59％。其中 Mzw--HDol标段165,690,250.00元、MZW一HDoZ标段277,411,335.00元。 4.1 .2 2017年1一12月待摊投资人民币一3,826,957.20元，累计待摊投资 人民币14,656,181.75元。 4,1.3 2017年1一12月其他投资人民币1,074, 591.00元，累计其他投资 人民币11,228,302.00元。其中，本年国外培训支出人民币283,656.00元， 国内培训支出人民币140,935.00元，累计支出人民币5,471,102.00元，占 计划的86.43％。 4.2货币资金 2017年12月31日货币资金余额为人民币48,536,1 52.53元，其中银 行存款人民币48,536,152.53元。 4.3预付及应收款 2017年12月31日余额为人民币33,533，犯1.70元。其中：预付长江 航道局MZW一HD01标段预付款一211,194.00元、预付广州航道局 MZW-HDoZ标段预付款11,043,845.00元、其他应收款23,000,670.7元。 12 4.4项目拨款 20 17年12月31日余额为人民币261,038,400.00元，为累计拨入的项 目配套资金。 项目计划配套资金总额人民币557,924,800,00元，截至2017年12月 31日累计到位配套资金人民币261,038,400.00元，占计划的46.79％。其 中部级计划配套资金总额262,000,000.00元，累计到位人民币 148,122,200.00元，占计划的56.53%；省级计划配套资金262,000,000.00 元，累计到位人民币112,916,200.00元，占计划的43.10％。项目执行单位 计划自筹资金人民币33,924,800.00元，累计到位人民币0元。 说明：由于工程通过招投标等措施节约了工程成本，预计工程投资额 将由概算的8.74亿元下降至6.01亿元。因此，为满足世行绩效要求，足 额佼用世行贷款，相应国内配套资金减少。 4.5项目借款 20 17年12月31日项目借款余额为人民币140,083,330.98元，即为国 际复兴开发银行贷款为21,438,482.29美元折合人民币数。 4.5,l截至20 17年12月31日累计提取世界银行贷款21,438,482.29 粎元，占贷款总额度的42.88%，具体如下： 类别核定贷款金额累计提款数提款比例 l、建安工程48,875,000.00 21,105,215.50 43.18% 2、培训1,000,000.00 208266,79 20.83% 3、先征费 125,000.00 125,000.00 100.00% 4、指定专用账户 总计50,000,000.00 21,438,482.29 42.88% 4.6应付款 20 17年12月31日余额为人民币153,233,812.00元，其中：l、应付 关联单位垫付预付款人民币39,106,0 12.00元；2、待归还与本项目无关的 l3 关联单位暂存款项114,127,800.00元。 4.7留成收入 20 17年12月31日余额人民币1,888.39元。 14 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The Loan No. of Fujian Meizhou Bay Navigation Improvement Project is 8227-CN. The Loan Agreement was signed on April 15, 2013 and came into effect on June 13, 2013. The account of the project will be closed before June 30, 2018. Totally USD50 million is financed by the World Bank. 1. 1 Fujian Meizhou Bay Navigation Improvement Project The Fujian Meizhou Bay Navigation Channel will help to improve the medium and long-term economic development of present and planned Meizhou Bay Industrial District. And the new transport connection with hinterland will help to boost the economic development of the Economic Zone on the Western Coast of the Taiwan Straits and Fujian, Jiangxi, Hunan and other hinterland provinces. This project aims to build low-cost transportation system through shortening the average distance between hinterland and port. The total investment plan of the project was RMB874,424,800.00 yuan, among which, the total World Bank loan amount was USD50,000,000.00, equivalent to RMB316,500,000.00 yuan; the domestic counterpart fund was RMB557,924,800.00 yuan. 1.2 Institutional cap acity- strengthening This component is financed by the World Bank and totals USDI,000,000.00, including overseas and domestic training and study tour. It aims to help the personnel of Fu ian transportation system to improve the management ability and gain the internationally advanced experience. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of MBHAB, as well as the Designated Account set in the FPFD. 3. Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of 4ccounting Methods for the World Bank Financed Projects (Caijizi[2000]N6.13 15 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, 2017 of the People's Bank of China, which is USD1= RMB6.5342 yuan. 4. Explanation of Subjects 4.1 Tot;al project expenditures The project expenditure in 2017 was RMB31,384,293.80 yuan, and the cumulative expenditures were RMB471,986,068.75 yuan, which accounted for 53.98% of the total investment plan. 4.1.1 The construction expenditure in 2017 was RMB34,136,660.00 yuan, and the cumulative expenditures were RMB446,101,585.00 yuan, which accounted for 61.59% of the investment plan. Among which, the expenditure of MZW-HD01 was RMB168,690,250.00 yuan, MZW-HDO2 was RMB277,411,335.00 yuan. 4.1.2 The deferred investment in 2017 was RMB-3,826,957.20 yuan, and the cumulative deferred investments were RMBl4,656,181.75 yuan. 4.1.3 The other investment in 2017 was RMB1,074,591.00 yuan, and the cumulative other investments were RMB 11,228,302.00 yuan. Among which, the cumulative expenditure of training was RMB5,471,102.00 yuan (overseas training RMB283,656.00 yuan, domestic training RMBl40,935.00 yuan), which accounted for 86.43% of the investment plan. 4.2 Cash and Bank On December 31, 2017, the balance was RMB48,536,152.53 yuan. Among which, the cash in bank was RMB48,536,152.53 yuan. 4.3 Prepaid and Receivable Its balance on December 31, 2017 was RMB33,833,321.70 yuan, including: the prepayment of RMB-211,194.00 yuan to Changjiang Waterway Bureau for 16 MZW-HDO1; the prepayment of RMB11,043,845.00 yuan to CCCC Guangzhou Dredging Co., Ltd. for MZW-HDO2; and other receivable of RMB23,000,670.7 yuan. 4.4 Project Appropriation Funds The balance on December 31, 2017 was RMB261,038,400.00 yuan, which was the counterpart funds allocated in total. The total planned counterpart funds of this project were RMB557,924,800.00 yuan. By the end of 2017, RMB261,038,400.00 yuan of the counterpart funds had been allocated, which accounted for 46.79% of the plan. Among which, the total planned counterpart funds at the ministerial level were RMB262,000,000.00 yuan and the actual cumulative allocated funds were RMB148,122,200.00 yuan, 56.53% of the plan; the total planned counterpart funds at the provincial level were RMB262,000,000.00 yuan and the actual cumulative allocated funds were RMB112,916,200.00 yuan, 43.10% of the plan; the total planned self-collected funds were RMB33,924,800.00 yuan and the actual cumulative allocated funds were RMBO yuan. Note: due to bidding and other measures saving the cost, it is estimated that the project investment will be reduced from the estimated RMB874 million yuan to RMB601 million yuan. In order to meet the World Bank performance requirements and make full use of World Bank loan proceeds, accordingly the corresponding domestic funding is reduced. 4.5 Project Loan The IBRD loan balance on December 31, 2017 was USD21,438,482.29, equivalent to RMB 140,083,330.98 yuan. 4.5.1 The cumulative withdrawn IBRD loan by Dec. 31, 2017 was USD21,438,482.29, accounting for 42.88% of the total. The details are listed as follows: Category Loan Amount USD Cumulative Withdrawals Withdrawal Ratio 1. Civil Works 48,875,000.00 21,105,215.50 43.18% 2. Consulting Service & Training 1,000,000.00 208266.79 20.83% 3. Front-end Fee 125,000.00 125,000.00 100.00% 4. Designated Account Total 50,000,000.00 21,438,482.29 42.88% 17 4.6 Payable The balance on December 31, 2017 was RMBl53,233,812.00 yuan, including: the advance payment of RMB 39,106,012.00 yuan payable to the relevant units, and the pending return of provisional deposits of relevant units not related to this project of RMB 114,127,800.00 yuan. 4.7 Retained Earnings The balance on December 31, 2017 was RMBL,888.39 yuan. 18