Henan Provincial Audit Office of the People's Republic of China Audit Report *W'$1 4 C 2017 ) 115 # HENAN AUDIT REPORT C2017) NO.115 Project Name: Zhengzhou Urban Rail Project Financed by the World Bank R : 8457-CN LoanNo.: 8457-CN Project Entity: Zhengzhou Rail Transit Co., Ltd. #t : 2016 Accounting Year: 2016 目录 ColltelltS 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 n .Financial Staten阴nts andNotestotheFinancialstatemenis..........．……5 （一）资金平衡表．........．……，................................．……，...............．……，…5 1.Balance Sheet.................................................．……，...．……，……，....．……，二5 （二）项目进度表．...........................................................................．……8 11.Summ田李of Sources and Uses ofFunds by Project ComPonent．…，.，……8 （三）贷款协定执行情况表．..............................................．……，...．……，11 111.Statement oflirlPlementatinn ofLoanAgreement……，.................．……11 （四）专用账户报表．．……，......．……，．…，,．……，................．……，.........．……12 iv. SpecialAccount Statement...............．……，....................................．……12 （五）财务报表附注…，.,..．……，．…，．……，..............................．……，...．……14 v.NotestotheFinancia1Statements....................................．……，.．…，．…，,16 三、审计发现的问题及建议．.................．……，…，............................．……18 nLAudit Findings and Recon卫nendations..........................．……，二，.,．…，．…21 一、审计师意见 审计师意见 郑州市轨道交通有限公司： 我们审计了世界银行贷款郑州市轨道交通3号线一期工程项目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5页至 第17页）。 （一）项目执行单位及河南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 表是你公司的责任，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。 l 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簖制，公允反映了世界银行贷款郑州市 轨道交通3号线一期工程项目2016年12月31日的财务状况及截至该日同 卜， 年度的财务收支、项目执行和专用账户收支情况。 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。 中一和· 地址：中国河南省郑州市纬二路27号 邮政簖码：450003 电话：86一371一65648053 传真：86一371一65995265 2 1. Auditor's Opinion Auditor's Opinion To Zhengzhou Rail Transit Co., LTD, We have audited the special purpose Financial Statements (from page 5 to page 17) of Zhengzhou Rail Transit Line 3 Project (Phase 1) Financed by the 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. Project Entity and Henan Provincial Finance Department's Responsibility for the Financial Statements Your entity is responsible for 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, which include: 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 3 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 Zhengzhou Rail Transit Line 3 Project (Phase I) financed by the World Bank as of December 31, 2016, 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. 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. Henan Provincial Audit Office of the People's Republic of China June28, 2017 Address: No.27 Weier Road, Zhengzhou City, Henan Province, P.R. China Postcode: 450003 Tel.: 86-371-65648053 Fax: 86-371-65995265 The English translation is for the convenience of report users; please take the Chinese audit report as the only official version. 4 II. Financial Statements and Notes to the Financial Statements (-) rUfq-* i. Balance Sheet BALANCE SHEET 2016 r 12 A 31 H (As of December 31, 2016) JV H8 tttiffI'Il$W#tA 3 F-MIEWS Project Name: Zhengzhou Urban Rail Project Financed by the World Bank Prepared by: Zhengzhou Rail Transit Co., LTD Currency Unit: RMB Yuan Application of Fund Line Beginning Balance Ending Balance Sources of Fund Line No. Beginning Balance Ending Balance -.No. 1 136,550,949.28 2,253,517,199.67 Tt Project 28 137.700.197.43 1 .000M00000.00 Total Project Expenditmres Total Project Appropriation Funds 2. ARfi 13* -q*F 29 Fixed Assets Transferred Pro ject Capital and Capital Surplus 2. *;KI * 1B 3 - 30 - - Construction Expenditures to be Disposed Including: Grants 3. 1!* 4 -A f 3 - 1.612.238701.58 Investments Transfered-out Total Project Loan 4. $:O.- 5 128,832,194.53 2,233,683,957.97 1 &AR**A 32 - 1.388.740.000.00 Construction in Progress Total Project Investment Loan 5.0 A*AN. 7,718,754.75 19,833,241.70 Value Added Tax Payable; 6R AF-G (1 # # 6 33 -138,740,000.00 Investment Loan Receivable Foreign Loan Including: World Bank Investment Loan 7 -Including: IDA 34 ReceivableI rtFrA #R*# 8590 ? 35 -138,740,000.00 Appropriation of Investment Loan IBRD Including :Appropriation of World Bank 9 - - Technical Cooperation36 Investment Loan 5 Application of Fund Line Beginning Balance Ending Balance Sources of Fund Line No. Beginning Balance Ending Balance 0, - 37 -- Equipment Co- Financing VT: h& K #A 11 -1 - 38 - 1,250,000000.00 Including: Equipment Losses in Suspense Domestic Loan Rtig it 12 -138,740,000.00 2. A 39 _ 223,498,701.5 Total Cash and Bank Other Loan 1.kff4a 13 -138,740,000.00 v 1a \* r3k40 Cash in Bank Appropriation of Investment Loan Including: Special Account 14 - 138,740,000.00 1ncludin : World Bank Loan 41 2. 15 0 .0 3i, t-f42 Cash on Hand 15 0.00 Bond Fund 42 A. tfltASrX;it 16 1A00000 22,8,3.6in , h4 Total Prepaid and Receivable 16 18,000,000.00 227,485,639.61 Construction Expenditures to be Offset 43 At k MW % 17 2 44 16,850,751.85 7,504,137.70 Including: World Bank Loan Interest Receivable Total Payable World Bank Loan Commitment Fee 18 Including: World Bank Loan Interest Payable 45 Receivable .19 World Bank Loan Commitment Fee 46 -- World Bank Loan Service- Fee Receivable Pable Marketable Securities 20 - World Bank Loan Service Fee Payable A. RW4 A. *R#it Al1)*?A t21 A- - 1 -i 48 - Total Fixed Assets Other Payables 22 A- ±%V* 49 -- Fixed Assets, Cost Appropriation of Fund l4:Ettrn +Jt AXA A-Xit 023 -50 -- Less: Accumulated Depreciation Retained Earnings 24 - Fixed Assets, Net 1fl25 A3Y - Fixed Assets Pending Disposal *k9 -r)m4k26-- Fixed Assets Losses in Suspense T *la o Fun 27 154,550,949.28 2,619,742,839.28 Tota S c ound 51 154,550,949.28 2,619,742,839.28 6 ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I *MItg :2016I$-12 Yl 31 H (For the period ended December 31, 2016) Project Name: Zhengzhou Urban Rail Project Financed by the World Bank Prepared by: Zhengzhou Rail Transit Co., LTD Currency Unit: RMB Yuan Current Period Cumulative Current Period Budget Current Period Actual Copeted Life of PAD Cumulative Actual Cumulative % Completed Completed 2,284,040,000.00 2,474,538,504.15 108.34% 20,608,279,500.00 2,612,238,701.58 12.68% Total Sources of Funds - 138,740,000.00 - 1,500,000,000.00 138,740,000.00 9.25% International Financing Cnp Fian 2,284,040,000.00 2,335,798,504.15 102.27% 19,108,279,500.00 2,473,498,701.58 12.94% Counterpart Financmng i a province 2.W-j prefecture\county 959,296,800.00 862,299,802.57 89.89% 8,655,477,390.00 1,000,000,000,00 11.55% 3. 6 A self-Raised Funds 1,324,743,200,00 1,473,498,701.58 111.23% 10,452,802,110.00 1,473,498,701.58 14.10% Total Application of Funds (byProject 2,284,040,000.00 2,116,966,250.39 92.69% 20,608,279,500,00 2,253,517,199.67 10.94% Component) 1,378,640,000.00 - - 10,330,041,300.00 engineering construction 7 Clit Current Period Cumulative Current Period Budget Current Period Actual Copeted Life of PAD Cumulative Actual Comlted Completed Completed 241,740,000.00 - 2,198,414,800.00 equipment investment Iesitminiga. c o 72,910,000.00 9,340,494.95 12.81% 547,578,800.00 137,534,709.38 25.12% design, training and consultaion management and institutional capability - 15,766,032.82 - 250,569,100.00 15,952,314.82 6.37% building land requisition and resettlement, quality 590,750,000.00 2,079,745,235.67 352.05% 7,281,675,500.00 2,080,196,933.77 28.57% monitoring and other investment 6, A* g - 12,114,486.95 - 19,833,241.70 - 357,572,253.76 358,721,501.91 Difference 1. k6A# it 209,485,639.61 227,485,639.61 Change in Receivables 2. rnf#tk?jt 9,346,614.15 -7,504,137.70 Change in Payables 3. WMfk3K 138,740,000.00 138,740,000.00 Change in Cash and Bank 4. -A Other 8 SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT II t'MEi2016 I 12 )A 31 F (For the period ended December 31, 2016) Project Name: Zhengzbou Urban Rail Project Financed by the World Bank wR*ft: tl repared by: Zhengzhou Rail Transit Co., LTD Currency Unit: RMB Yuan Project Component Project Expenditure Cumulative Amount Assets Transferred S i WorkinProgress Exndttioe Investments bop-? fh*: Deerrd Wrk n Prgres Ependturs t be Transferred-out Fixed Asset Current Asset Intangible Asset Deferred 1L;fCrtiu engineering construction 2A4 * equipment investmentn 3.if, 4 $14 $14) design, training and consultation 137,534,709.38 - - - - 137,534,709.38 4.94#A99 ik 15,952,314.82 - - - - 15,952,314.82 management and institutional capability building 5.tEM0tif A 2,080,196,933.77 - 2,080,196,933.77 land requisition and resettlement, quality monitoring and other investment 6. JiW%ft 19,833,241.70 - - - - 19,833,241.70 2,253,517,199.67 - - Total 2,253,517,199.67 9 iii. Statement of Implementation of Loan Agreement STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT *flLM 2016 4 12 fl 31 I (For the period ended December 31, 2016) A1M4 tt M iiVflml 3 l Project Name: Zhengzhou Urban Rail Project Financed by the World Bank Prepared by: Zhengzhou Rail Transit Co., LTD Currency Unit: USDIRMB Yuan Loan Amount Current-period Withdrawals Cumulative Withdrawals Category Ar Ykc rrAA K ipr A AA K P USD USD RMB USD RMB 1. T. Civil Works 2. ft4 Goods 3. 4*J14 Consulting Service 4, ##EP# Unallocated 5. AiE Front-endFee 6. *#lt* SpecialAccount - 20,000,000.00 138,740,000.00 20,000,000.00 138,740,000.00 A, if Total 250,000,000.00 20,000,000.00 138,740,000.00 20,000,000.00 138,740,000.00 10 iv. Special Account Statement SPECIAL ACCOUNT STATEMENT *M912016 *12)M 31 Ei (For the period ended December 31, 2016) 392 t*. 4JItifl3' 3 41J2918 Project Name: Zhengzhou Urban Rail Project Financed by the World Bank '9: 8457-CN Loan No. :8457-CN Prepared by: TheFinanceDepartmentof Henan Province Depository Bank: Zhengzhou Branch,PINGAN Bank W-5': 11015000728006 Account No. :11015000728006 Currency: USD Part A-Account Activity for the Current Period Amount MtVi Beginning balance (month/day/year) J0bt Add: M t4tl~I~A # Total amount deposited by IBRD 20,000,000.00 Total interest earned this period if deposited in Spiciaol Account - Total amount refunded to cover ineligible expenditures - &> Deduct: - Total amount withdrawn - Total service charges if not included in above amount withdrawn - Ending balance (month/day/year) 20,000, 000. 00 Part B-Account Reconciliation Amount Amount advanced by IBRD 20, 000, 000. 00 $ Deduct: (fl tobecontinedd) 11 Total amount recovered by IBRD Outstanding amount advanced to the Special Account at month/day/year Ending balance of Special Account at month/day/year 3L1 Add: Amount Claimed but not yet Credited at the End of this Period Application No. Amount 6.A±*JM* BMW4K*&A Amount vithdrawin but not yet claimed 7 R.#*(it*- d3 EP5*t5 6tt) Cumulative service charges (if not included in item 5. or 6.) tI# Deduct: ah$)AR 4A(#kt)mAPt ) Interest earned (if included in Special Account) 9. &t#Tht EPt##4t* 20,000,000.00 TotalAdvance 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。 郑州城市轨道交通项目贷款号为8457一CN。郑州城市轨道交通建设旨 在通过该项目的实施，有效改善郑州城市基础设施条件、增强郑州市引领 带动作用，对于根本簓解城市交通压力，进一步改善老城、疏散人口带动 和促进新城繁荣发展有重要的意义。郑州城市轨道交通3号线一期工程为 新柳路站至航海东路站（含）段，线路长约25.2公里，设车站21座。项 目协议于2015年2月13日签订，2015年5月13日生效，预计2021年6 月30日前关闭。项目计划总投资为人民币206.08亿元，其中世界银行贷 款总额为2.5亿粎元。本项目贷款将用于3号线一期工程土建工程01至。 标段建设，预计投资金额为人民币18.9亿元。 2．财务报表编制范围。 本财务报表的簖制范围为郑州市轨道交通有限公司关于轨道3号线一 期资金筹集和建设投入的会计核算。 3．主要会计政策。 3.1本项目财务报表按照《财政部关于印发＜世界银行贷款项目会计核 算办法）的通知》（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，即USDI＝人民币6.9370 元。 4．报表科目说明。 13 4.1项目支出。 2016年项目支出人民币2,1 16,966,250.39元，占年投资计划的92.69%; 项目累计支出人民币2,253,517,199.67元，占项目总投资额的10.94％。 4.2预付及应收款。 2016年12月31日余额为人民币227,4 85,639.61元，主要是预付土建 工程01至03标段预付工程款。 4.3项目拨款。 2016年12月31日余额为人民币1,000,000,000.00元，为郑州市财政 拨入的项目配套资金。 4.4项目借款。 2016年12月31日余额为人民币l,612,238,701.58元，为3号线一期 银行贷款。其中世界银行贷款余额为人民币138,740,0 00.00元。 4.5应付款． 2016年12月31日余额为人民币7,5 04,137.70元，主要是应付3号线 一期勘察设计质保金及拆迁款。 4.6货币资金。 2016年12月31日货币资金余额为人民币138,740,0 00.00元，其中河 南省财政厅世界银行专用账户余额为粎元20,000,000.00元（按2016年12 月31日汇率计人民币138,740,000.00元）。 l4 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview The loan No. of the Zhengzhou. Urban Rail Project is 8457-CN. The construction of Zhengzhou Urban Rail Transit aims to effectively improve the condition of Zhengzhou's infrastructure and enhance the leading role of Zhengzhou. It is of great importance to fundamentally relieve the urban traffic pressure, ffirther improve the condition of the old town, decentralize population and promote the prosperity and development of the new town. The main components of the Project include Phase I of the construction of Metro Line 3, starting from Xinliulu Road Station to Hanghaidong Road Station.The total length of the main line is 25.2 kilometers, with a total of 21 stations. The project agreement was signed on Feb. 13, 2015 and entered into effect on May 13, 2015. The account of the project was expected to be closed on June 30, 2021. The total investment plan of the project was RMB20.608 billion yuan, of which the World Bank loan amount was USD250 million. The World Bank loan will be used for the civil works of Bidding Section 1 to 4 of Metro Line 3. The investment was expected to reach RMB 1.89 billion yuan. 2. Consolidation Scope of the Financial Statements The scope of the financial statements covers the financing and the construction investment accounting of Metro Line 3 prepared by the Metro Project Office of Zhengzhou Rail Transit Co., LTD. 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 I to December 3 1. 3.3 The accrual basis and the debit/credit double entry bookkeeping method are adopted. RMB is used as the recording currency of bookkeeping. 15 3.4 According to the People's Bank of China December 31,2016exchange rate, that is USD1 = 6. 9370yuan. 4. Explanation of Subjects 4.1 Total Project expenditures The project expenditure in 2016 was RMB 2,116,966,250.39 yuan, accounting for 92.69% of the annual investment plan, and the cumulative expenditures were RMB 2,253,517,199.67 yuan, accounting for 10.94% of the total investment. 4.2 Prepaid and receivable Its balance on December 31, 2016 was RMB 227,485,639.61 yuan, mainly the advance prepayment of Bidding Section 1 to 3 of Metro Line 3. 4.3 Project Appropriation Funds The balance on December 31, 2016 was RMB 1,000,000,000.00 yuan, which were the counterpart funds allocated by Zhengzhou Municipal Government. 4.4 Project Loan The balance on December 31, 2016 was RMB 1,612,238,701.58 yuan, which were the bank loan for Line 3,including the balance of World Bank loan RMB 138,740,000.00 yuan. 4.5 Payables The balance on December 31, 2016 was RMB 7,504,137.70 yuan, mainly the retention money of survey and design. 4.6 Cash and Bank On December 31, 2016, the balance was RMB 138,740,000.00 yuan, of which the balance of the World Bank Special Account was USD 20,000,000.00 (equivalent to RMB 138,740,000.00 yuan by the exchange rate of December 31, 2016). 16