Anhui Provincial Audit Office of the People's Republic of China Ir %L Audit Report 6* H# C2018) 25 # ANHUI AUDIT REPORT [2018] NO.25 Project Name: Ma'anshan Cihu River Basin Improvement Project Financed by the World Bank 8251-CN Loan No.: 8251-CN Project Entity: Ma'anshan Municipal Cihu River Basin Improvement Project Management Office 2017 Accounting Year: 2017 目录 ColltelltS 一、审计师意见，…，,.,.．…，...........．……，............．……，.............................．……1 1 .Auditor&5 Opillion .．…，.............．……，..................................................．……3 二、财务报表及财务报表附注．……，........................................．……，.．……，5 11,F inancial Statements and Notes to the Financial Statenlents ........．……5 （一）资金平衡表．....................．……，......．……，......．……，二，.,..........．……5 1 .Balance Sheet.................................．……‘.....................................．……5 （二）项目进度表．.................................．……，..............................．……7 1 1.Summary ofsources and Uses ofFundsbyProjectComponent.．…7 （三）贷款协定执行情况表．......................................................．……9 111 .Statement of Impfementation ofLoanAgreeme爪……，．……，...．……9 （四）专用账户报表．..........................................．……，...............．……］0 iv.Special Account Statement......................................................．……10 （五）财务报表附注．．…，.．……，...............................．……，.．……，...．……12 v.Notes to the Financial StatelnentS ............................................．……15 三、审计发现的问题及建议．..............................．……，.....................．……19 HI.Audit FindingS alld Recommelldations ...........................．··．·····．...．……21 一、审计师意见 审计师意见 马鞍山币慈湖河利用世行贷款项目工作领导小组办公室： 我们审计了世界银行贷款马鞍山慈湖河流域水环境治理项目 2017年12月3！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18页）。 （一）项目执行单位及安徽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 情况表是你办的责任，簖制专用账户报表是安徽省财政厅的责任，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钓重大错报。 （二）审计责任 我们的责任是在执行审计工作的墓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。 1 我们相信，我们获取的审计证据是适当的、无分的，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针 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 贷款马鞍山慈湖河流域水环境治理项目2017年12月31日的财务状 况及截至该日同年度的财务收支、项目执行和专用账户收支情况。 （四）其他事项 我们审查了本期内报送给世界银行的提款申请书及所附资料。我 们认为，这些资料一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。 飞卫与 中华人芜典和国安娜省审计厅 20气8年6月28日 地址：中国安徽省合肥市屯溪路272号 邮政簖码：230001 电话：86一551一64678262 传真：86一551一64678265 1. Auditor's Opinion Auditor's Opinion To Ma'anshan Municipal C1hu River Basin Irriprovement Project Management Office We have audited the special purpose financial statements (from page 5 to page 18) of Ma'anshan Cihu River Basin Improvement Project financed by the World Bank, which comprise the Balance Sheet as of December 3 1, 2017, 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 Anhui Provincial Finance Department's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and I Jses of Funds by Project Component and the Statement of Implementation of Loan Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Anhui Provincial Finance Department, which includes: i. Preparing and fair presenting the accompanying financial statements in accordance with Chinese accouriting 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 perforrn 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 staternents, whether due to fraud or error. In niaking those risk assessments, the auditor considers 3 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 Ma'anshan Cihu River Basin 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 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 applications 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. Anhui Provincial Audit Office of the People's Republic of China June 28, 2018 Address: No. 272 Tunxi Road, HefeiCity, Anhui Province, P.R. China Postcode: 230001 Tel.: 86-551-4678262 Fax: 86-551-4678265 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 (-) *kf kl i. Balance Shcct BALANCESHEET 2017 - 12 AJ 31 5 (As of December 31, 2017) Project Name: Ma'anshan Cihu River Basin Improvement Project Financed by the World Bank Prepared by: Ma'anshan Municipal Cihu River Basin Improvement Project Management Office '91 4-å: A k ri Currenev Unit: RMB Yuan Line 111&JAi ' LinexM Application of Fund No. Beginning Balance Ending Balance SouTces of Fund N Beginning Balance Ending Balance IN Å tt 1 365,273,463.32 460,945,581.45 Total Project 28 275,381,166.17 293,619,690.43 Total Project Expenditures Appropiation Funds 1 IlfI iP 2 - Project Capital and Capital 29 Vixed Assets Transferred Surplus 2, feK å15 I 30 fi Construction Expenditures 3 Including Grant30 to be Disposed 3 *4 Hný 4 ..1lP-Pibit 31 270,181,410.40 329,460,687.98 Investments Transferred-out Total Project Loan 1. f J)MHl0l1 4 i brTgfe 5 365,273,463.32 460,945,581.45 Total Project 32 150,181,410.40 209,460,687.98 Construction in Progress Investment Loan f1. /W %Ql i Û 6 -133 150,181,410.40 209,460,687.98 Investment Loan Receivable Foreign Loan Including: World Bank 7 Including IDA Investmnent Loan Receivable Appropriation ofInvestment 8 - 35 150,181,410.40 209,460,687.98 Loan IBRD Including Appropriation of 9 - Technical 36 - World Bank Investnent Loan Cooperation 10 - - 37 Equipment Co- Financing Including Eqipment Losses il (2) XJfäk 38 120,000,000.00 120,000,000.00 in Suspense T- a Gat and Ban it12 135,042,652.83 123,127,754.90 Oh Loan39 T otal Cash and Bank Other Loan Cashin Hank 13 135,042,027 18 123,126,898.25 Appropriation of 40 Ciash in Bank Investment Loan -j P 1 ' MTKPMK14 51,580,769 13 18,623,646.91 Including: World Bank 41 Inciuding: Special Account Loan 2. JÅ t 15 625,65 856.65 11, JP M P . 42 Cash on Hand Bond Fund ) (To be continued) 5 I otal Pepa ld and R el e c Il6.6110.1 Co70,i ct e Ion Expenditures includ 'n World Bink Loan 7- 44 ,29,666 42 234 8 18 i d ter Ixil1 I e alota Paya ble I I fo il i e:ýs 'j __k W orld Banck LoanIdd 'S odRiS i Comitentic I ce l-oani intees Payable ih Woild Bank Loan Service- 19 - - World Bank Loan 46 Fec Reccivable Commitimnt Fee Pay able Tfîi~- 20 - - 47 Marketable Secunrties World Bank Loan Service Fee Pavible A, |ihi 5T it 21 - - ' z 1 ý7 Mt 48- Total Fixed Assets Other Payables FL22 - - 49 Fixed Assets. Cost Appropriation of Fund d IHfr| I ess: Accumulated 23 - - 50 39,983.34 58,451.49 Deprecialion Retined Eanings Fixed Asset, Net Fixed Assets Pendiin Disposal j StI T- R~ 5,26 Fixed Assets Losses in Suspense 27 552,532226.33 635.443,512.08 51 55232,226.33 635,443,512.08 Total Applicationi of Fund Total Sources of Fund 6 ( ii) f 9 åka ii. Summary of Sources and Uses of Funds by Project Component f( ) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I *«] 9 2017 4- 12 )A 31 B (For the period ended December 3 1, 2017) Project Name: Ma'anshan Cihu River Basin Improvement Project Financed by the World Bank Prepared by: Ma'anshan Municipal Cihu River Basin Improvement Project Management Office '51ýi4- 4: A Rif Currency Unit: RMB Yuan 44VI iit Current Period Cumulative Current Period Current Period Pend f ofiPAD Cumulative Cumulative % Budget Actual Period % Life ofPAD Aclual Completed Completed 370,857,640.23 77,517,801.84 20.90% 1,319,896,800,00 623,080,378.41 51.24% Total Sources of Funds 11 Al 180,342,115.98 59,279,277.58 32.87% 625,000,00000 209,460,687.98 33.51% International Financing NI 180,342115.98 59,279,277.58 32.87% 625,000,000,00 209,460,687.98 33.51% IBRD 190,515,524.25 18,238,524.26 9.57% 590,896,800.00 413,019,690.43 70.00% Counterpart Financing Mid] 1 *it (4ý fjd H i [A ) Total Applicalion of Funds (by 562,867,144.64 95,672,118.13 17.00% 1,215,896,800.00 460,945,581.45 37.91% Project Component) 1. U l 1:% components ICihu River 195,516,838.83 46,894,970.87 23 99% 578,208,372.87 132,046,066.57 22.84% Rehabilitation and Drainage Improvemient 2. l 2: ik jiîdájÓ-nýjj_ý comiponents2:Rehabilitation of 195,516,838.83 39,945,931,53 20.43% 593,764,508.03 309,675,524.98 52.15% Tributaries and Diainage Canals ,3-fäul 1 1vg. i0i components3:Environment 165,926,883 73 4,266,826.56 2.57% 9,370,000.00 5,286,066.72 56.41% Management and Monitoring 4. -JIll 4: V l 0i9fd)iht iW coinponents4 Capacity 3,661,111.11 823,914.48 22.500% 10,650,000.00 1,850,900.90 17.38% Building and Projeet Implenentation Support 5. A ItL,21ý 2,245,472 14 3,740,474.69 166.58% 23,903,919.10 12,087,022.28 50.57% others Expenses - -18,154,316.29 . 162,134,796.96 Difflerence i. - -845,934.45 51,370,175.73 Change in Receivables 2. F i- 4,1 t . -5,375,015.76 . -12,304,682.18 Change in Payables 3. 7'iT F2iiti lt - -11,914,897.93 - 123,127,754.90 Change in Cash and Bank 4. tI - -18,468.15 -58,451.49 - Other 7 「「［;―더，: х �_ о - - � гv о о � -т а v о � х � и �^. 1� �_ � � � � � � � -" � о � м �� гV м V цJ � � � г� .о м а � Z � , - v; с� � � м � N .О О [-а -� _а � д= а Z '� ° � ` ��''/ и МТ W -�\ � �х "`о � �I� � _� � W ;�- �+ Ш о �r - г� с� г� �; с. о с о W ���''Л, _ и .: , � � 4= х �а � � �_� ,� о -� �� , r-� � � °' " 3 � � � � �j� � '�- р с�б '�� О � _ о � � 'б �� �' � .'. г� V, - � оо о� � � � � � r L Cl-, � Г' 't7 � � � й О г`� � �j � � U� ш � r о � г_ 1� 'п'I � II ^� w � U 1�.' Q � � � � W г�1 ь�� � � > ''1I� � � о� С� -i� � � о � � г�� о � � П-, � � w -�+ °' � ��; � , С) �,� � � � � о о °о °о �-jI1� � С� О Н � е� ° о о ос � � �� а. 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Special Account Statement -4ý ffi Åk p ýR A SPECIAL ACCOUNT STATEMENT 2017 't- 12 1 3 1 H (Fot- tfic period ended December 3 1, 2017) VJ,: tl_ý -YMFý ýý 91ý1YÅ, 1`5 4ý u t Äý JFI ýÄL JA -y 4i di 1,1 ý1 ýk 1-ý iý, ýf, JA-" å- If __A L, Depository Batik-: Hefei Zhomylou brancli, Proýject Name: Ma'aiishin Cil~tu River Basin China Construction Batik Innprovertiont Projeet Financed by tlie World YK5r: 3401448020022100047502 Batik Account No. 3401448020022100047502 8251-CN rlj Loan No.:8251 -CN Curreney: USD Prepared by: The Finance Departmej it ofAnhui Province A 1ý 91 1ý ffik J ` qk 3ý194 16,L K9i Part A-Account Activitv for the CirrTent Period A11101111t ý)j ý11 l50 7,435,601,72 Beginning Balance Jr, 1 : - Add Å4JJIMTMAIÄIM114ý 10,40M25,87 Total Amount Deposited this Period by World Bank 31 qý A 14,ý,ýfl ( 1ýf A 2 511, 1 å` VI 5ý ) 3,226,69 Total Interest Eamed this Pei iod if`Deposited in Special Accouni 1ý WII ' -i i 4ý,ý jý H,ý 9 1 j1 9jý9 - -Total Arnount Refunded this Period to Cover Ineligible Expeirclitures 9ik j1 : Deduct, 10,404,101,47 Total Amount Witlidraivii this Period 4, Mj 1ý t1 4 ,, ri 3ý f1 'M, 1, M LU ýý ý,tf jý H" Total Senicc Charges this Period if not Inclucled in Above Amount Witlidraxkil kli * 1ý hp 7,441,407.81 Ending Biluncc (,r6 tý To be conti n ued 10 Part D-Account Rconciliation Amount i tIii 4 jý Ki10),000,000).00 Amount Advanced bx World Rank Deduct 2 iLý #%t4ilal Total Amount Recovered by World Bank 3 , IIUJP15 FH) 44i,)9k10,000,000.00 Outstanding Arnount Advanced to the Special Account at the End of this Period Ending Balance of Special Account JO1f: Add: Amount Claimed but not yet Credited at the End of this Period 6. Amnount Withdran abut not yet Claimed at the End of this Period 7. 1eM' ±i†i ( 'êNi- 5 TU 6 €‡) 135 Cunalative Service Charges (If not inciuded in Item 5 or 6) Deduct: 8. fif4 À (Tf/ÀA ii )N 99f I2 ) 9,080.47 Interest Earned (If lcluded in Special Account) 9. gMMn9OI' M i YMMOM 10,000,000.00 Total Advaice to the Special Account Accounted for at the End of this Period II1 （五）财务报表附注 财务报表附注 1．项目概况 马鞍山市世行贷款慈湖河流域水环境治理贷款号为8251一CN，本项 目借助于世界上成功的经验，在设计、排水工程、系统和环境监测等方面 带来创新，支持《国别合作战略》关键目标的实现，并通过复制试点方案 推动创新。 该项目还将支持和促进十二五规划里中国的可持续发展计划，重点是 恢复河流环境质量，扭转生态退化，加强环境管理的制度框架。项目初设 批复概算总投资 12.159亿元人民币。项目生效日期和截｛卜日期为2m3 年9月2舜日至2019年1月31日。贷款金额为1亿美元，折合人民币62,500 万元（汇率1:6.25)，扣除先征费156万元人民币，实际为62,344万元 人民币。贷款年利率约1-55%，还款期25年。 项目建设内容包括慈湖河主河道修复和排水系统改善（子项目l）、支 流水系和排水渠修复（子项目2）、环境管理和监测（子项目3）、能力建 设和项目机构加强（子项目4）。利用世行贷款采购共26个合同包。 2．财务报表编制范围 本财务报表的簖制范围包括马鞍山市慈湖河利用世行贷款项目工作 领导小组办公室、马鞍山市采石河慈湖河综合开发有限责任公司项目财务 报表及省财政厅专用账户报表。 3．主要会计政策 3.1本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〔200。〕13号）的要求编制。 3.2会计核算年度采用公历年制，即每年1月1日至12月31日。 3.3本会计核算以“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。 12 3.4按照中国人民银行2017年12月31日汇率，即USD卜人民币 6,5342元。 4．报表科目说明 4.1在建工程 至2m7年12月31日在建工程支出人民币460,945,581.45兀，累计 支出人民币460,945,581,45元，占总投资计划的37.91％。 井．2货币资金 至2沮7年12月31日货币资金余额为人民币123,127,754.90元，其 中专用账户存款折合人民币48,623,646.91元。 4.3应收款 2沮7年12月31日余额为人民币51,370,175.73元，其中：预付工 程款10,370,1 75.73元；预付慈湖高新区征迁事务管理局征迁款 26,50。，0叨元（主河道征迁）；预付花山区征迁拆迁拆违工作推进指挥部 11,500，。00元（主河道征迁）。 4.4项目拨款 至2017年12月31日余额为人民币413,619,690.43元，是到位的配 套资金，其中：市项目办10,958,110．时元；市采石河慈湖河综合开发有 限责任公司165,390,123.00元；慈湖高新区管委会及花山区 2 37,271,457.40元。 项目计划配套资金总额人民币590,8%,800元，截至2沮7年12月 31日到位配套资金人民币413,619,690.43元，占计划的70．叨％。 4.5项目借款 至2017年12月31日余额为人民币329,460,687.97元，其中：国际 复兴开发银行贷款额为32，肠6，肠7．仍美元（包含25。，叨0.00美元的先 征费），折合人民币209,460,687.98元；截至2017年12月31日，累计 已提取世界银行贷款32,056，。57.05美元，占贷款总额的32.06％。国内借 款1,200，。。。，0叨．叨元，为两河公司2016年2月在中国农业发展银行马 鞍山市分行营业部贷款（重点建设基金贷款，年利率1.2％贷款期为10年）o 13 4.6应付款 至2m7年12月31日余额为人民币12,304,682.18元，主要是应付 工程保留金为12,304,682.18元。 4.7留成收入 期末数89斗5.47粎元，按照决算汇率折合为人民币58,541.49元，是 2沮7年12月31日累计专用账户到期利之、9080.47美元与手续费135．叨 粎元的差额。 5．专用账户使用情况 本项目专用账户设在中国建设银行合肥钟楼支行，账号为 3401448020022100047502，币种为美元。专用账户首次存款 10,000,000.00粎元。2017年年初余额7,435,601.72美元，本年度回补 10,4肠，725.87粎元。本年未包括在支付额中的服务费支出45美元。至 2沮7年12月31日服务费累计支出135美元，已经在相应的会计科目中 做了汇总损益调整。本年利息收入总额3,226.69美元，本年度支付总额 10,404,lm.47粎元，截至本期期末己支付但尚未申请报账金额 2,567,537.66粎元，至2017年12月31日期末余额7,441,407.81美元。 6．其他支出 项目进度表的其他支出主要是先征费、项目前期工作经费、建设期利 息等，待项目完工时分摊到各子项目中。 7．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是由 于历年汇兑损益造成的。 1」 V. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The World Bank loan Ma'anshan Cihu River Basin Improvement project's loan number is No.8251-CN. The Project refers to successful experience around the world, brings new ideas in design drainage project, system and environment monitoring, supports to realize the key objective of "national cooperative strategy", and promotes innovation through copy pilot programme. The Project also support and promote the sustainable development plan in the Chinese Twelfth Five-year Plan, focuses on recover the fluvial-environment q uality, reverse ecological degradation, strengthen the institutional framework o f environment management. The approved budget of the project preliminary d esign was 1.2159 billion Chinese Yuan(RMB). The effective date of the projec t was Sep. 24th, 2013, and the Closing date of the project was Jan.3 Ith, 2019. The loan amount is I hundred million US dollar, equivalent to RMB 625 milli on Yuan, (exchange rate 1:6.25), take out the Front-end fee 1.56 million Yuan, actually was 623.44 million Yuan. The loan annual interest rate is about 1.55% the period of repayment is 25 years. The project comprises four components: (1) Cihu River Rehabilitation and Dr ainage Improvement. (2) Rehabilitation of Tributaries and Drainage Canals. (3) Environment Management and Monitoring. (4) Capacity Building and Project Implementation Support. Use the World Bank loan money to procurement 26 contract packages. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of Ma'anshan Municipal Clhu River Basin improvement Project Management Office(PMO), Ma'anshan Caishi River and Cihu River Comprehensive Development Co. Ltd(MCRD), The Municipal Environmental Protection 15 Bureau. Huashan Districts management institutions, Cihu Hi-Tech District management institutions and Yushan Districts management institutions. as well as the Special Account set in the Anhui Provincial Finance Department. There are no withdrawn in 3 new add project management institutions in current period. 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 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. 3.4 The exchange rate adopted in the financial statements was the exchange rate on Dec. 31, 2017 of the People's Bank of China, which is USD1= RMB6.5342yuan. 4. Explanation of Subjects 4.1 Total Project expenditures On Dec. 31, 2017 the project expenditure was RMB 460, 945,581.45 yuan, and the cumulative expenditures were RMB 460, 945,581.45 yuan, which accounted for 37.91% of the total investment plan. 4.2 Cash and Bank On Dec. 31, 2017 the balance was RMB 123, 127,754.90 yuan. And the funds in the Special Account were converted to RMB 48, 623,646.91 Yuan. 4.3 account receivable The balance on Dec. 31, 2017 was RMB51, 370,175.73 Yuan, the advance payment was RMB10, 370,175.73, advanced payment for the resettlement with amount of RMB 26,500,000 to the Cihu Hi-Tech District. (resettlement for main channel ) advanced payment for the resettlement with amount of RMB 11, 500,000 to the Huashan District. ( resettlement for main channel) 4.4 Prepaid and Receivable Its balance on Dec. 31, 2017 was RMB 413,619,690.43 Yuan, which was the counterpart funding. It does consist of RMB 10, 958,110.03 Yuan for PMO, 16 RMB 165,390,123.00 for MCRD and RMB237, 271,457.40 Yuan for Cihu High-tech Zone Management Committee and Huashan District. The total amount of the Project counterpart funding was RMB 590, 896,800 Yuan. By Dec. 31, 2017, the counterpart funding put in place was RMB 413, 619,690.43 Yuan, which accounted for 70.00% of the total investment plan. 4.5 Project Appropriation Funds The balance on Dec- 31,2017 was RMB 329,460,687.97 Yuan, the world bank loan amount was USD 32,056,057.05 (Including Front-end fee of USD250,000.00), converted to RMB 209,460,687.97 Yuan. By Dec. 31,2017,USD32,056,057.05was withdrawn from the World Bank loan funding , which accounted for 32.06% of the World Bank loan. Domestic Appropriation Funds was RMB 120,000,000, which was borrowed from the Sales Department of China Agricultural Development Bank Maanshan Branch for Ma'anshan Caishi River and Cihu River Comprehensive Development Co. Ltd(MCRD) in Feb.2016( key constuction fund loan, annual interest rate was 1.2%,loan term limit for 10 years). 4.6 Project Loan The balance on Dec. 31, 2017 was RMB 12, 304,682.18 Yuan, mainly for the engineering retention payable RMB 12,304,682.18 Yuan. 4.7 Retained Earnings The ending balance USD8945.47, Equivalent to RMB58,541.49 Yuan according to the exchange rate, which is the difference between the Cumulative Interest USD9080.47 earned by Special Account and USD135 service charge. 5. Special Account The Special Account of this project is set in Heifei Zhonglou Branch, China Construction Bank, with the account number of 3401448020022100047502, and USD as currency Unit. The first time Deposit in the Special Account is USDI,000,000.00. The balance in the early 2017 was USD 7,435,601.72. Total amount deposited by World Bank was USD10,406,725.87 in this year. Total service charges if not included in above amount withdrawn was USD45. By the end of Dec. 31, 2017, Cumulative service charges was USD135. Summary period adjustments have been made in the appropriate accounting subjects. In this year, the Interest earned was USD 3,226.69, and the total amount withdrawn was USD 10,404,101.47. The amount withdrawn but not 17 yet claimed was USD 2,567,537.66. The Ending balance by Dec.31. 2017 was USD7,441,407.81. 6. Other expenses Others expenses in the Project progress schedule mainly were Front-end fee, antecedent work expense, interest earned during construction, construction management fee and so on, they will be share to each of the sub-project after the completion of the Project. 7. Others In the Balance Sheet, the difference between Beginning Balance and Ending Balance was caused by exchange gains and losses over the years. 18