27 SEP 2021 Audit Office of Guangxi Zhuang Autonomous Region of the People's Republic of China Audit Report F1'WkF N (2021) 66-# GXAUDIT REPORT (2021) NO.66 Proj ect Name: Guangxi Poverty Reduction Program for Results Financed by the World Bank [ 8890-CN Loan No.: 8890-CN Project Entity: Guangxi Administration Center of Foreign Funded Project for Agriculture Fx 2020 Accounting Year: 2020 L csonte柔E 一、审计师意见．,，二，，…，二，,．…，......................................................．················……1 幼装鑫彗；n;i&.’一＿__＿一＿..&.&.&.&.&.&.&.’…＿.&.&.’一一一，一：仁 n .Statement and Nbtes tothe Statement........．……，…，．……，，…，…，,.．……，......．……6 （一’202”年度世界银行结果导向型贷款广西扶贫示范项目资金使用〔 情况表．................................．……，......．……，…，.．……，二，,．…，.......................．……6 i,Guang劝Poverty Reduction Progralll for Results by the Wbrld Barik Funds Usage Su~ary for 2020.．··，，··，，···，·······，·，·····································……“〔 （二）报表附注．.．……，............................................．·················，···········一7 11.Notes to the Statement…，...................................................................．……9 三、审计发现的问题及建议．...．……，..............................．……，..．……，二，，……，,，二12〔 111.Andit Findings and Reco~endations..........．····，····，····························……16 四、附件：本年度抽查项目县清单．....................．……，........................．……，二21 I二～X:LISt。fChecke。Targete。。ountie。。fZoZ。．...........................．……2，「 [ 〔 〔 〔 一、审计师意见 仁审计师意见 幼襼农业外资项目管理中心： 仁我有1审计了截至2020年12月3，日的2020年度世界银行结果导向型 贷款幼襼扶贫示范项目资金佼用情况表及报表附注（第6页至第11页）。 「（一，项目执行单位对报表的责任 簖制上述报表是你中心的责任，这种责任包括： 1．按照《幼襼壮族自治区财政厅广西壮族自治区扶贫开发办公室关 「于印发贫困县统筹整合涉农资金统计表格的通知》（桂财农（ 2018〕157 一号）和《世界银行结果导向型贷款幼西扶贫示范项目评估报告》的要求编 制报表，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报表是否不存在 重大错报获取合理保证。 「为获取有关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，我们考虑了与报表相关的内部控制，但目的并非对内部控制的有 厂效性发表意见。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 目估计的合理性，以及评价报表的总体列报。 毯 [ 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，第一段所列报表在所有重大方面按照《广西壮族自治区财「 政厅幼襼壮族自治区扶贫开发办公室关于印发贫困县统筹整合涉农资金曰 统计表格的通知》（桂财农〔2018〕巧7号）和《世界银行结果导向型贷 款幼襼扶贫示范项目评估报告》的要求编制，公允反映了截至2020年12 月31日的世界银行结果导向型贷款广西扶贫示范项目资金使用情况。「 我们提醒报表佼用者关注报表附注中关于编制基础的说明。广西农业U 外资项目管理中心簖制的世界银行结果导向型贷款广西扶贫示范项目资 金佼用情况表是为了遵循贷款协定等规定。因此，报表可能不适用于其他 用途。本段内容不影口向已发表的审计意见。〔 （四）其他事项 审计工作按照本项目的审计大纲进行，我们对报表中的资金进行了审「 计。匕 本审计师意见之后，共同构成审计报告的还有两项内容：报表及报表 附注、审计发现的问题及建议。彩痴添、〔 中华人民共瞿缈塑嘿哪计厅 2壕9臀目翼。 地址：中国幼襼南宁市民族大道98号丫岁L 邮政簖码：530022\～叫了 电话：86一771一5 800259 传真：86一77卜5566806〔 2[ 1. Auditor's Opinion Auditor's Opinion To Guangxi Administration Center of Foreign Funded Project for Agriculture We have audited the Guangxi Poverty Reduction Program for Results by the World Bank Funds Usage Summary for 2020 (from page 6 to page 11) as of December 31, 2020, and Notes to the Statement. The Responsibility of Project Entity for the Statement The preparation of Statement is the responsibility of your center, which includes: L Preparing and fair presenting the accompanying statement in accordance with the requirements of Circular of Department of Finance of Guangxi Zhuang Autonomous Region and Poverty Alleviation and Development Office of Guangxi Zhuang Autonomous Region on Printing and Issuing the Statistical Forms for the Consolidated Poverty Reduction Funds in Poor Counties (Guicainong [2018] No. 157) and The Evaluation Report on Guangxi Poverty Reduction Program for Results Financed by the World Bank; ii. Designing, implementing and maintaining necessary internal control to ensure that the statement is free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on this statement 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 statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of 3 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 F as evaluating the overall presentation of the statement. 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 statement identified in the first paragraph present fairly, in all material respects, funds usage of the Guangxi Poverty Reduction Program for Results Financed by the World Bank as of December 31, 2020, in accordance with Circular of Department of Finance of Guangxi Zhuang Autonomous Region and Poverty Alleviation and Development Office of Guangxi Zhuang Autonomous Region on Printing and Issuing the Statistical Forms for the Consolidated Poverty Reduction Funds in Poor Counties (Guicainong [2018] No.157) and The Evaluation Report on Guangxi Poverty Reduction Program for Results Financed by the World Bank. We remind users of the statement to pay attention to the Notes to the Statement on the preparation of the instructions. Guangxi Poverty Reduction Program for Results by the World Bank Funds Usage Summary prepared by Guangxi Administration Center of Foreign Funded Project for Agriculture is to comply with loan agreements and other provisions. Therefore, the Statement may not be suitable for other purposes. This paragraph does not affect the opinion above. Other Matter The audit is carried out in accordance with the Terms of Reference for Annual Program Statements Audit. We have audited the funds in the Statement. The audit report consists of the Auditor's Opinion and two more parts hereinafter: Statement and Notes to the Statement, Audit Findings and Recommendations. Audit Office of h nomous Region of the People's lic Chin September 24, 4 Address: No. 98, Minzu Avenue, Nanning, Guangxi, P.R. China Postcode: 530022 Tel.: 86-771-5800259 Fax: 86-771-5566806 The English translation is for the convenience of report users; 'pease take the Chinese audit report as the only official version. C5 г г Г Г С С С [ С L e Summary for2020 款幼襼扶贫示范项目资金使用情况表 5 by thew心rld Bank Funds Usa只e Summary for2020 020年12月31日 ied December 31,2020) 货币单位：人民币万元 井闻 6 ！一 二、报表及报表附注 ｝玲鸳黑糼糼撇湍蒸幼襼扶贫示范项目资摊用情况表 1.Guang对Pove州沙Redudion Program for Results勿the World Bank Funds Us· 「。uangxiPO渭然黯魏薰煞嘿 本期截三 于沉the period 项目名称：世界银行结果导向型贷款广西扶贫示范项目 厂州ectN~:Gu娜iPove巾Reduedon Prograln for Results Financed by the World Bank ＼卜 七 { { { i_ [ （二）报表附注 〔报表附注 1．项目概况 仁世界银行结果导向型贷款幼襼扶贫示范项目贷款号为8890一cN，旨在 通过产业扶贫模式在选定的项目县带动农户增收，助力广西实现到2020 年脱贫摘帽的总体目标。项目内容包括：推动贫困地区扶贫产业发展，改 善农村基础设施建设，改善农村教育扶贫以及项目能力建设、监测和评估 「等4个分项目。项目贷款协定、项目协议于2018年9月17日签订，2018 一年12月14日生效，预计于2021年12月31日关账，计划利用世界银行 贷款4亿美元。 厂2．报表编制范围 一本报表的簖制范围包括2020年度全区28个项目县统筹整合使用财政 涉农资金及世界银行贷款资金佼用情况表（扣除易地搬迁收支部分）。 「3．主要会计政策 ~3.1本项目报表按照《幼襼壮族自治区财政厅广西壮族自治区扶贫 开发办公室关于印发贫困县统筹整合涉农资金统计表格的通知》（桂财农 (2018〕157号）和《世界银行结果导向型贷款广西扶贫示范项目评估报 「告》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。 本报表是本项目第二次簖制，会计核算涵盖了2020年1月1日开始至2020 仁年’2月3，日所发生的支出。 3.3本项目会计核算以“收付实现制”作为记账原则，以人民币作为记 账本位币口 仁3，、、照中国人民银行202。、，2月。，。汇率，。。UsDI一人民币 匕 「 6.5249元。 4．贷款协定执行情况［ 截至2020年12月31日，项目累计提取世界银行贷款资金 294,88氏999.99粎元，占贷款总额的73.72％。其中：支付指标报账款累计 霸馨纂糼咒咒瑟鑫毓咒昆盆盘望1?00,000.00美元’「 5．项目资金计划及实际支出情况 ，。摆爵矍淤裂贵膏常镖2｛黑黑，叽瑟；糯冀〔 中：中央扶贫专项资金累计实际支出人民币518,737.49万元，支出进度 97.79%；省级扶贫专项资金累计实际支出人民币385,499,25万元，支出 进度98·270/0；市级扶贫专项资金累计实际支出人民币30,586.31万元，支f 出进度99.09%；县级扶贫专项资金累计实际支出人民币6,999.90万元，匕 支出进度99.41%；世行贷款累计实际支出人民币90,671.81万元，支出进 度66.86％。 6．其他需要说明的事项〔 根据幼襼壮族自治区财政厅统筹整合涉农资金的管理要求，上年度统 筹整合各级财政涉农资金结余由项目县继续使用，但不列入本年度报表。 〔 「 [ 8 「 I ii. Notes to the Statement r Notes to the Statement r 1. Project overview The loan number of Guangxi Poverty Reduction Program for Results Financed by the World Bank is 8890-CN. It aims to help Guangxi to achieve the overall goal of poverty eradication by 2021 through the industrial poverty reduction model to increase farmers' income in designated targeted counties. The contents of the program include 4 sub-programs, such as promoting the industrial development for poverty reduction in poor areas; improving rural infrastructure construction; improving rural education and training for poverty reduction; program capacity building, monitoring and evaluation. The Program Agreement was signed on September 17, 2018 and came into effect on December 14, 2018. The account of the program will be closed on December 31, 2021, the program plans to use the World Bank loan of USD400,000,000.00. 2. Consolidation Scope of the Statement Consolidation scope of the statement covers the funds usage summaries of consolidated poverty reduction funds from finance and the World Bank loan in 28 targeted counties for 2020 (deduction of the part of income and expenditure for relocation for poverty reduction). 3. Accounting Policies 3.1 The statement of the program was prepared according to the requirements of Circular of Department of Finance of Guangxi Zhuang Autonomous Region and Poverty Alleviation and Development Office of Guangxi Zhuang Autonomous Region on Printing and Issuing the Statistical Forms for the Consolidated Poverty Reduction Funds in Poor Counties (Guicainong [2018] No. 157) and The Evaluation Report on Guangxi Poverty Reduction Program for Results Financed by the World Bank. 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January I to December 3 1. The statement is the second preparation of this program. The accounting covers the expenditures incurred 9 from January 1, 2020 to December 31, 2020. 3.3 The accounting of the program follows the accounting principle of accounting on the cash basis. RMB is used as the recording currency of bookkeeping. 3.4 The exchange rate adopted in the statement was the exchange rate on December 31, 2020 of the People's Bank of China, which is USD= RMB6.5249 yuan. 4. Implementation of the Loan Agreement By the end of December 31, 2020, accumulated USD294,880,999.99 of the World Bank loan of the program had been withdrawn, accounting for 73.72% of the total, among which the the accumulative withdrawal for DLI was USD191,681,000.00, the accumulative withdrawal for DLI advance was USD100,000,000.00, the interest and commitment was USD2,199,999.99, and the front end fee was USD1,000,000.00. 5. Program Fund Plan and Actual Expenditures The program plans to consolidate RMB10,962,562,700.00 yuan in 2020, as of December 31, 2020, the accumulated actual expenditure was RMB10,324,947,600.00 yuan, the expenditure progress was 94.18% . For Central poverty reduction earmarked funds, the accumulated actual expenditure was RMB5,187,374,900.00 yuan, the expenditure progress was 97.79%; for provincial poverty reduction earmarked funds, the accumulated actual expenditure was RMB3,854,992,500.00 yuan, the expenditure progress was 98.27%; for poverty reduction earmarked funds at municipality level, the accumulated actual expenditure was RMB305,863,100.00 yuan, the expenditure progress was 99.09%; for poverty reduction earmarked funds at county level, the accumulated actual expenditure was RMB69,999,000.00 yuan, the expenditure progress was 99.41%; the accumulated actual expenditure of the World Bank loan of the program was RMB906,718,100.00 yuan, the expenditure progress was 66.86%. 6. Other Explanation for the Statement According to the management requirements of the Department of Finance of Guangxi Zhuang Autonomous Region for the consolidated poverty reduction funds, the remainning funds of consolidated poverty reduction funds at all 10 U fiscal levels in the previous year shall be used by targeted counties for continued use and shah not be included in the statement for this year. V II Li U U U U L 「 三、审计发现的问题及建议 审计发现的问题及建议［ 除对财务报表进行审计并发表审计意见外，审计中我们还关注了项目 执行过程中相关单位国家法规和项目贷款协定遵守情况、内部控制和项目「 管理情况及项目绩效及上年度审计发现问题整改落实情况。我们发现，相 关项目业主在财务核算、资金管理、采购管理等方面，相关管理制度健全 并能有效执行，但我们也发现存在如下问题： （一）内部控制方面存在的问题仁 1．部分实施项目企业资质不符合要求。 截至2021年7月，28个项目县共有116家企业参与了发展当地特色 优势扶贫产业子项目，其中仅有64家参与企业获得市级以上农业龙头企L 业认定或具备市级以上农业龙头企业的经营主体的要求。 上述做法，不符合《世界银行结果导向型贷款广西扶贫示范项目实施 操作手册》“6.1.2.1企业选择的主要条件（2）实施项目的龙头企业必须是＿ 已认定为市级以上农业龙头企业或具备市级以上农业龙头企业条件的经L 营主体。”的规定。建议你中心加强对转贷审批管理，督促各项目县严格 按照操作手册规定，科学合理选择贷款企业，同时对已参加但未符合条件 的企业加强指导，督促贷款相关企业规范企业管理，提高企业经营水平，_ 争取早日获得龙头企业认定。你中心已接受审计建议。L 2．部分项目参与企业未对世行贷款资金进行专张核算。 截至2021年7月，隆林各族自治县、忻城县有5家项目参与企业未 对世行贷款专项资金进行专账核算。f 上述做法，不符合《世界银行结果导向型贷款广西扶贫示范项目管理一 办法的通知》（桂农厅规（2019)4号）第十条“项目资金管理应当遵循 专款专用、公开公正、绩效管理的原则，实行专人管理、专户储存、专账 核算、专项佼用”的规定。建议你中心督促隆林各族自治县、忻城县项目t 办加强对贷款资金佼用的监督，规范贷款资金财务管理。你中心已接受审一 12 [ 〔 计建议。 仁（二）项目管理方面存在的问题 1．部分项目县未按要求制定本级项目管理办法。 。截至2021年7月，德保、凌云等11个项目县未制定本级项目管理办 l夕法。 上述做法，不符合《世界银行结果导向型贷款广西扶贫示范项目管理 办法的通知》（桂农厅规（2019〕4号）第三十五条“各级项目办根据本 。办法制定本级项目实施细则和办法”的规定。建议你中心督促相关项目县 L加快制定本级管理办法，完善项目管理。你中心已接受审计建议。 2．个别扶贫项目建设缓慢，未能按计划完成。 。忻城县2020年安排统筹整合财政资金人民币1 588万元，用于建设实 b施忻城县桑蚕产业脱贫第一期项目，计划于2020年年底前建成马泅乡联 团村、古蓬镇杼内村、红渡镇三合村等3个桑蚕基地，建筑面积共计6280m&, 由于项目业主忻城县农投发展集团有限公司工程进度管理不到位，项目推 。进簓慢，截至2021年7月，该项目尚未建成。上述做法，不符合自治区 L财政厅自治区扶贫开发办公室《关于印发广西财政专项扶贫资金管理细 则的通知》（桂财农（2018)192号）第十七条“县级项目主管部门是扶 贫项目及资金的日常监管主体，对加快项目实施，加快资金使用负有首要 。责任，要主动建立扶贫项目台账，定期检查项目实施进度．~.～一旦发现工 L期延误的情况，项目主管部门应立即深入分析原因，协调相关部门解决问 题，督促实施单位加快项目推进和资金执行进度”的规定。建议你中心督 促项目业主加快项目建设进度，争取项目早日建成发挥作用。你中心已接 仁受审计建议。 3．个别项目存在超付行为，涉及金额人民币256.09万元。 上林县振林农村投资发展有限公司在实施山水牛产业项目架子牛采 购中，由于结算时未能足额扣回定金，造成多付购牛款人民币256,09万 L元。上述做法，不符合《中华人民共和国民法典》第五百八十七条“债务 人履行债务的，定金应当抵作价款或者收回”的规定。建议你中心责成相 仁 「 关单位采取有力措施及时追回多付购牛款，避免资金损失风险。你中心已 接受宾兰愁漏效方面存在的问题「 1．部分项目县世行货款资金佼用绩效不佳，结余资金合计人民币 10嘿箕泵6月，、林、，平、、林、、峨等4个～局世行贷〔 款专户累计收到自治区财政厅拨付世行贷款资金人民币31,950.00万元， 各项目县实际支出人民币20,9 60.58万元，结余人民币10,9 89,42万元。造 成资金佼用簓慢的主要原因是企业转贷项目推进缓慢影响世行贷款资金「 拨付。七 建议你中心督促相关县项目办加快推进贷款相关项目建设进度，提高 贷款资金佼用效率。你中心已接受审计建议。 2．部分已建成产业扶贫项目闲里，涉及金领人民币2946.2，万元。［ (1）忻城县2020年安排统筹整合财政资金人民币4882.02万元用于 建设忻城县养牛专业合作社（就业扶贫车间）项目，2020年9月，项目 亡 髻凝髯乓藻瓢篡渭戮籍装豁’霎星鉴，〔 年7月，其中12个养殖小区，尚未投入使用，涉及金额人民币2497.10 万元。 万元篡鼎宾絮糼重蓄赞着重薰鼻暨髻拿鼻蠢异工黔擎〔 2020年12月底建成。经审计核查发现，由于配套设施不完备、未安排黄 牛采购资金，截至2021年7月，上述2个黄牛养殖产业园仍未投入使用。 贫资糼鳖豪霹狱露食豪鹜作鑫井犷籍‘攀裂竺贡馨瞥仁 要充分发挥自治区财政专项扶贫资金的引导作用，以脱贫成效为导向、以 脱贫攻坚规划为引领，加强脱贫攻坚规划与行业规划的衔接，统筹整合使 馨覆霜鬓篡瞥盘重重潺寡篡鬓瓢馨黯霸籍馨裘纂馨篓L 金，解决交通不便、饮水困难、施设不完备、养殖“空栏”等问题，确保 l4 毅 仁 相关项目及资金发挥效益。你中心已接受审计建议。 E（三）上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部分扶贫项目建设缓慢、世行 仁贷款资金佼用簓慢、部分已建成产业扶贫项目闲置等’个问题已整改完毕。 〔 七 「 「 仁 仁 仁 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 financial control and program management, program performance and the follow-up of previous recommendations during the program implementing process. We found that in compliance with aspects of internal control management including financial accounting, fund management, procurement management etc., the relevant control system is sound and have been effectively implementing, but issues are included as follows: Issues on internal control 1. Part of the implement entities did not meet the requirements. As of July 2021, a total of 116 enterprises in 28 project counties participated in the sub-project of developing poverty alleviation industries with local characteristics and advantages, of which only 64 participants were recognized as agricultural leading enterprises above the municipal level or met the requirements of being business entities of agricultural leading enterprises above the municipal level. The above practice did not conform to the Article 6.1.2.1 of Implementation and Operation Manual of Guangxi Poverty Reduction Program for Results Financed by the World Bank, which stipulates the main selected conditions for enterprises that ... (ii) The implement entities of the project must be identified as agricultural leading enterprises above the municipal level or have the conditions of becoming the leading agricultural enterprises above the municipal level. We suggested that your center improve the management of refinancing approval, supervise and urge all counties to scientifically and reasonably select loan enterprises in strict accordance with the operating guidelines, and strengthen the guidance of enterprises that participated in but not identified at the same timel supervise and urge related loan enterprises to standardize management, improve operational level, and strive for the recognition of leading enterprises early.Your office accepted the suggestion. 16 2. Part of the project enterprises did not conduct special accounting for the World Bank loan funds. As of July 2021, 5 project enterprises of Longlin Muntinational Autonomous County and Xincheng County did not conducted special accounting for the World Bank loan special funds. The above practice did not conform to Article 10 of Circular of Management Measures of Guangxi Poverty Reduction Program for Results Financed by the World Bank (Guinongtinggui [2019] No.4), which stipulates that project fund management shall follow the principles of special funds for special use, openness and fairness, performance management, and moreover, perform related regulations of special person management, special account storage, special accounting, and special use. We suggested that your center supervise and urge PMOs of Longlin Muntinational Autonomous County and Xincheng County to strengthen supervision on the usage of loan finds, and standardize the financial management of loan funds.Your office accepted the suggestion. Issues on project management 1. Part of PMOs at county level failed to formulate project management measures at county level as required. As of July 2021, 11 PMOs at county level including Debao and Lingyun did not formulate their own project management measures at county level. The above practice did not conform to Article 35 of Circular of Management Measures of Guangxi Poverty Reduction Program for Results Financed by the World Bank (Guinongtinggui [2019] No.4), which stipulates that Project Management Offices at all levels shall formulate and prepare their own implementation rules and methods in accordance with the Measures. We suggested your center supervise and urge PMOs of related counties to quicken the formulation of management measures at county level and improve project management.Your office accepted the suggestion. 2. The construction of individual poverty reduction program was slow and not completed as planned. In 2020, Xincheng County arranged consolidated financial funds of L 17 RMB15,880,000.00 yuan to carry out the phase one program for the construction and implementation of the Xincheng County Silkworm Industry Poverty Reduction Program, which planned to build 3 silkworm bases in Liantuan Village of Masi Township, Bannei Village of Gupeng Township, and Sanhe Village of Hongdu Town with a total construction area of 6,280 m2 by the end of 2020. Due to the inadequate project management of the project entity Agricultural Investment Development Group Co., Ltd. Of Xincheng County, the project made slow progress in project implementation. As of July 2021, the project was not completed. The above practice did not conform to Article 17 of Circular of Department of Finance of Guangxi Zhuang Autonomous Region and Poverty Alleviation and Development Office of Guangxi Zhuang Autonomous Region on Printing and Issuing Detailed Rules for the Management of Special Financial Poverty Alleviation Funds of Guangxi (Guicainong [2018] No.192), which stipulates that the county-level project authority is the main body of daily supervision of poverty alleviation projects and funds, and has the primary responsibility for quickening the implementation of the project and accelerating the use of funds. Project authority should take the initiative in establishing a poverty alleviation project ledger and regularly checking the progress of the project... once the construction delay appeared, the project authority should immediately analyze the reasons in depth, coordinate with relevant departments to solve the problem, and urge implementation entities to quicken the progress of the project and the implementation progress of funds. We suggested that your center supervise and urge relevant project entity to quicken the progress of program construction, and strive for the early completion of the project to perform effectively.Your office accepted the suggestion. 3. There was overpayment in individual project, involving an amount of RMB2,560,900.00 yuan. Zhenlin Rural Investment Development Co., Ltd. of Shanglin County failed to deduct the deposit fully at the time of settlement, which was during the store cattle procurement in the implementation of the Shanshui cattle industry project, resulting in an overpayment of RMB2,560,900.00 yuan. The above practice did not conform to Article 587 of Civil Code of the People's Republic of China, which stipulates that where the debtor performs its obligation, the deposit shall be set off against the price or refunded to the debtor. We suggested that your center instruct relevant unit to take effective measures to recover the overpayment of cattle procurement timely to avoid the risk of capital loss.Your office accepted the suggestion. Issue on project performance 1. The performance of the World Bank loan funds in some project counties was poor, with a total balance of RMB109,894,200.00 yuan. As of June 2021, the World Bank loan funds cumulatively received by the special accounts of the Finance Bureaus in 4 counties of Longlin, Guiping, Shanglin and Tian'e and appropriated by Department of Finance of Guangxi Zhuang Autonomous Region were RMB319,500,000.00 yuan, and the actual expenditures totaled RMB209,605,800.00 yuan. Thus, the ending balance of L7 the World Bank loan funds in targeted counties was RMB109,894,200.00 yuan in total. The main reason for the slow use of funds was that the slow progress of enterprise refinancing projects affected the disbursement of the World Bank loan funds. We suggested that your center supervise and urge PMOs of related counties to quicken the progress of program construction, and enhance the efficient usage of loan funds.Your office accepted the suggestion. 2. Some completed industrial poverty reduction programs were left idle, involving an amount of RMB29,462, 100.00 yuan. 1) In 2020, Xincheng County arranged consolidated financial funds of RMB48,820,200.00 yuan to carry out Cattle Raising Specialized Cooperative (Employment Poverty Reduction Workshop) project. In September 2020, all 27 breeding communities of the project have been completed. Through audit we found that, due to compensation disputes during land using process and unscientific site selection, inconvenient transportation, insufficient water supply in some breeding communities, as of July 2021, 12 of the breeding communities were not been put into use, involving an amount of 17 RMB24,971,000.00 yuan. 2)Longlin Multinational Autonomous County arranged consolidated financial funds of RMB4,491,100.00 yuan to carry out Longliang Cattle Breeding Industrial Park in Yacha Town, Dalan Cattle Breeding Industrial Park in Longhuo Town, and completed construction at the end of December 2020. Through audit we found that due to incomprehensive supporting facilities, insufficient funds for purchasing breeding cattle, 2 established cattle breeding 19 industrial parks mentioned above were not been put into use. The above practices did not conform to Article 14 of Circular of General Office of the People's Government of Guangxi Zhuang Autonomous Region on Printing and Issuing Regulations for Financial Special Poverty Alleviation Funds of Guangxi (Guizhengbanfa [2017] No.42), which stipulates that ... all counties should give full play to the guiding role of the autonomous region's financial special funds for poverty alleviation, with the effectiveness of poverty eradication as the guide, with poverty eradication planning as the leader, strengthen the engagement of poverty eradication planning and industry planning, integrate and use relevant financial funds related to agriculture, to improve the accuracy and effectiveness of the uses of funds. We suggested that your center supervise and urge relevant project entities to quicken the resolution of project land using disputes, actively arranged counterpart funds to solve the issues of inconvenient transportation, insufficient water supply, inadequate facilities, and "empty fences" for breeding, etc., to ensure the effectiveness of relevant projects and funds.Your office accepted the suggestion. The followed-up of previous recommendations Through audit we found 3 issues disclosed in the audit report of previous year were followed up, i.e., the constructions of some poverty reduction programs were slow, the World Bank loan funds were used slowly and some completed industrial poverty reduction programs were left idle. 20 IEV. Annex: List of Checked Targeted Counties of 2020 List of Checked Targeted Counties of 2020 Number Name of Targeted County Number Name of Targeted County 1 uj 7 H Mashan County Zhaoping County 2 ±#A8U Shanglin County Tian'e County 3 Longsheng Multinational 9 D Cut Autonomous County 4 410 Guiping County Xincheng County Debao County 6 Longlin Multinational Autonomous County H t R- 28 I; t#flfl *1 A -tA 35.7l%1 Note: There are 28 targeted counties in total, and the checked 11 targeted counties of 2020 account for 35.71% of the total. 21 г г г г С г � г С L