Sichuan Provincial Audit Office of the People's Republic of China Audit Report 11 [2021) 15 -9 SICHUAN AUDIT REPORT C 2021 ] NO.15 Project Name: Lushan Earthquake Reconstruction and Risk Reduction Project-Road Subproject A ~ : 8647-CN Loan No. : 8647-CN Project Entity: Sichuan Provincial Transportation Department Highway Bureau 2020 Accounting Year: 2020 目录 ColltelltS 一、审计师意见．......．……，........................................................................．……，二1 1 .Auditor&5 OPinion...．……，…，,.....．……，.............．……，……，............................．……3 二、财务报表及财务报表附注．,........．……，,...............................................．……6 11 .Financial Statements and Notes to the Financial Statements．……，…，.．……，二6 （一）资金平衡表．.........................................．……，.......................．……，.....．……6 1 .Balance Sheet.......．……，.....................................．……，…，.,，……，..........．……，．……6 （二）项目进度表．.................．……，........................．……，...................．……，……10 11,Surnlnary of Sources and Uses ofFunds by Project Component.．…，....．……10 （三）贷款协定执行情况表．.............．……，..............................................．……13 111.Statement oflmplementation ofLoanAgreement,..............................．……13 （四）指定账户报表．…，........................................．……，...........................．……14 iv .Designated Account Statelnent..．……，...................................................．……14 （五）财务报表附注．........................................．……，...............．……，........．……16 v.Notes to the Financial Statements....．……，...............．……，.......................．……19 三、审计发现的问题及建议．.......．……，....................................................．……23 Hl.Audit Findings and Recommendations..................．……，……，....．……，...．……30 一、审计师意见 审计师意见 四夕｝｝省交通运输厅公路局： 我们审计了世界银行贷款芦山地震灾后恢复重建项目一交通子项目 2020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22页）o （一）项目执行单位及四川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 况表是四川省交通运输厅公路局（以下简称：省公路局）的责任，编制 指定账户报表是四川省财政厅的责任，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 l 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。 （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 芦山地震灾后恢复重建项目一交通子项目2020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．们审查了本期内由四川省财政厅报送给世界银行的 SCLS一GL一。2、scLs一GL一。3号提款申请书及所附资料。我们认为，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。 中了跳人民共相国四川含审计厅 川，1年一多月灸5日 地址：中国四川省成都市永兴巷巧号 邮政簖码：610012 电话：86一028一86522202 传真：86一028一86522013 2 I. Auditor's Opinion Auditor's Opinion To Sichuan Provincial Transportation Department Highway Bureau We have audited the special purpose financial statements (from page 3 to page 22) of Lushan Earthquake Reconstruction and Risk Reduction Project-Road Subproject financed by the World Bank, which comprise the Balance Sheet as of December 31, 2020, 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. Project Entity and Sichuan 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 office, while the preparation of the Designated Account Statement is the responsibility of Sichuan Provincial Finance Department, which includes: i. Preparing and fairly 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 perfon-ning procedures to obtain audit evidence about the 3 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 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, the financial position of the Lushan Earthquake Recovery and Reconstruction Project Financed by the World Bank-Road Subproject as of December 31, 2019, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the designated 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 application NO.SCLS-GL-02 to NO.SCLS-GL-03 and the attached documents submitted by Sichuan Provincial Department of Finance to the World Bank during the period. In our opinion, those documents comply with the project loan agreement and can serve as the 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, and Audit Findings and Recommendations. Sichuan Provincial Audit Office of the People's Republic of China May 25, 2021 4 Address: No. 15, Yong Xing Alley, Chengdu City, Sichuan Province, P.R. China Postcode: 610012 Tel.: 86-028-86522202 Fax: 86-028-86522013 The English translation is for the convenience of report users; please take the Chinese audit report as the only official version. 5 II. Financial Statements and Notes to the Financial Statements (-) *--* i. Balance Sheet BALANCE SHEET & A & 2020 * 12 J 31 El (For the period ended December 31, 2020) ProjectName: Lushan Earthquake Recovery and Reconstruction Project Financed by World Bank - Road Subproject Prepared by: Sichuan Provincial Transportation Department Highway Bureau Currency Unit: RMB Yuan W r1 2019 Mt 2020w Application of Fund Line No. Begnung Balance Ending Balance 1 41,168,898,58 88,325,430 23 Total Project Expenditures 2 Fixed Assets Transferred 3 Construction Expenditures to be Disposed Investments Transferred-out 4 4.ARIV 5 41,168,898.58 88,325,430.23 Construction in Progress 6 Investment Loan Receivable 7 Including: World Bank Investment Loan Receivable 8 Appropriation of Investment Loan 9 Including Appropriation of World Bank Investment Loan 10 Equipment AIP: Including: Equipment Losses in Suspense 6 ota Cas ank 12 9,232,528.87 8,080,912.04 Cash in Bank 13 9,232,528.87 8,080,912.04 14 6,600,273.72 5,439,164 60 Including: Special Account 15 Cash on Hand AN, Total Prepaid and Receivable 16 88,190,830.25 93,422,633,97 17 Including: World Bank Loan Interest Receivable 18 World Bank Loan Commitment Fee Receivable 19 World Bank Loan Service- Fee Receivable 20 Marketable Securities 21 Total Fixed Assets 22 Fixed Assets, Cost 23 Less: Accumulated Depreciation 24 Fixed Assets, Net 25 Fixed Assets Pending Disposal 26 Fixed Assets Losses in Suspense Total Application of Fund 27 138,592,257.70 189,828,976.24 (EMl) ('o be continued) 7 A ff MV& 2019 tF MZ 2020 4- Sources of Fund Line No. Beginning Balance Ending Balance -, R I- Total Project Appropriation Funds 28 116,034,231.37 120,875,275.97 29 - Project Capital and Capital Surplus A;r 4' ! 9. 30 Including: Grants Total Project Loan 31 21,451,815.00 50,152,825.76 32 21,451,815.00 50,152,825.76 Total Project Investment Loan (1)MPH%M Foreign Loa 33 21,451,815.00 50,152,825.76 34 Including. IDA I BRD 35 21,451,815,00 50,152,825.76 36 Technical Cooperation 37 Co- Financing (2)[A Ft f 38 Domestic Loan 2.4 @ 39 Other Loan 40 Appropriation of Investment Loan 41 Including: World Bank Loan 42 Bond Fund 43 Construction Expenditures to be Offset Total Payables 44 1,069,087,70 18,751,195.08 45 Including World Bank Loan Interest Payables 46 World Bank Loan Commitment Fcc Payables 8 갹 9 ( - ) ] , 0 it A A ii. Summary of Sources and Uses of Funds by Project Component * q A & A ( - ) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I 2020 * 12 A 31 H (For the period ended December 31, 2020 t *,t: fy -W- ig fi 9 A;0"- Lb ItA "krFt X I A J)F J - z A -,f * f J Project Name: Lushan Earthquake Recovery and Reconstruction Project Financed by World Bank - Road Subproject -%4W L V9)IItx7` A i -- 4 k FT 4 / .9 Prepared by: Sichuan Provincial Transportation DepaFtIllent Highway Bureau k if * t: )\ K i Currenc Unit: RMB Yuan *M V i+ Current Period Cumulative 49 U- ZR91 4 M K tf: K A E 4 H A", i+ V A V ij- 5t hi VI T it Current Period Current Period Current Period Life of PAD Cumulative Cumulative % Budget Actual %Completed Actual Completed Total Sources of Funds 96,610,634.00 33,542,055 36 34.72% 309,505,000.00 171,028,101.73 55 26% International Financing 86,500,000.00 28,70 1, D 10 76 33.18% 195,000,000.00 50,152,825.76 25.72% 195,000,000,00 50,152,825.76 It IBRD 86,500,000.00 28,701,010.76 33.18% 25.72% 92VWgCounterpart Financing 10,1 IC,634.00 4,841,044,60 47.88% 114,505,000,00 120,875,275.97 105.56% 1,41M9 Domestic loan 2, 5EftfEg Appropriation Funds 10,110,634.00 4,841,044.6D 47.88% 114,505,000.00 120,875,275.97 105.56% 3, Project Capital 7w L it -(Ii 'IN H N -- - Total Application of Funds (by Project Component) 96,610,634M 47,156,531,65 48,81% 309,505,000.00 88,325,430.23 28 54% Upgrading and Risk Reduction of Rural Roads 96,610,634.00 47,156,531,65 48 81% 309,5C5,000.00 88,325,430.23 28.54% 2, PE ft JA iAJ 5Jl i bt f Q r 14 dt * ht t Upgrading of Priority Urban Infrastructure and strengthening Emergency Preparedness 10 Current Period Cumulative 21 it t rl I: :LVF5 14 R V, rYfihl E Current Penod Current Period Current Period Cumulative Cumulative % Budget Actual % Completed Life of PAD Actual Completed TA for Strengthening of Disaster Management and Preparedness in Shimian County 4., Project Management and Capacity Building V Difference -13,614,476.29 82,702,671.50 Change in Receivables 5,231,803.72 93,422,633.97 2 V44ktIt Change in Payables -17,682,107.38 -18,751,195 08 3 ffTi W 2t Change in Cash and Bank -1,151,616.83 8,080,912.04 4. $' Other -12,555.80 -49,679.43 11 ！婦口 � г`оу � � °и � °о n '� оо г� r о и �ч � г� м г�i ° о�о� � ��' � оо о� и er' г� � о v � й .и- а Са � ® � � � м о� о � ° �_ `� � °'� 3 � � °р � °о � °о й Э > � h.+ '�'Fi т мг�}, о о о м "у-'�, � - и и о �о � г� г� о оо � ��п' О `г? о ш CJ � J � м [� �� U � �Г � � � � , , , , � � гv W �, V N � ьс � � '� и � � г� � и W � аЭ о 00 � о � о w -и д� м � ^/ `е �ь ^ 3 � Г ,М � v V � �Е s � ° ��м , , , , , , � � � � � � � о v д: � � � � � Q' v' .�. а � � � �. о � U �К д � .� � � � � �" � j О � %� Г�, N � � ® п м -� ~J М �, � г-� w®-� Г� � ® � g о ' о ' ' � с�С � �� ~ N N J, -с о о о °о � r1 U � �лЧ+ С и и и о" .uL' � „� �1 О rn � r о N ���'®1 � V ЭS�'�г� 4 1,� -Пи о' р И � � О � соб � У� _ � � � � b О � j'цi1 � N � � � � ..� '� � �1�-( �.т.� � о � � � � � w � � ® 3 „ д � °" ,� � � ��а w�,�� х � � � � w � � � �I � н о � � ~ 1't�- � � L iвд. � � Я � � '�'� о � ] у ` сд � ® II � � � � � а � д г � = w - ® � �-{ b о �'' „_" �' `° д о V ai �i �, мс � � �iF? о д�1 0. х � +, � �L' � � � � � s о � ос Z °ь+ W �® о � r� 3�с о � а ti `-' � С О ы уΡt�'',/а � п v и о ��v � 3 о, � ° �� ' 7\ � � � 11(¢ � т � м �+t� � о F о � ;"� Q� W 'IY у�л Н cj с с�о U а °' I�. � � Г' � � � � �, ,� � ;� � � � � � ro � � ы -< � � � �� U И а� � � К � {� '� _ �i а� °�I � � ` а � t� � � .� Н .` � � � �� н г� g�V 1i5 � � Z v � � " Q " "`` М�1 i�iF � � � � � � й '� j�, � � � �? � � Х�'' сд � rZ- � :� й '4.� � � � � � [ � � � � д � � ��� V �� с�� � � v �i � д и �� � � ai =� и � � � � � .� � � й � "i'� б2 � с�б ® � � 3 � 3 ,.F'-� �К ;;;� � F '� �+-а .�[ Z �о � � � r� �; и /°"� � ц� v-1%i CI ор t�i о ri v и � . � �. � I � � '�Р • � �}" `�ц, v � =1i .}}.{ Q О г�ц а� иr : м �1 � � .� � （四）指定账户报表 iv.Designated Account Statement 指定账户报表 DESIGNATED ACCOUNT STATEMENT 本期截至202。年12月31日 (For the period ended December 31,2020) 项目名称：世界银行贷款芦山地震灾后恢复重建项卧交通子项目 Project Name;Lushan Earthquake Recovery and Reconstruction Project Financed by World Bank一Road Subproject 开户银行名称：中国农业银行股份有限公司四川省分行 Depository Ballk:Sichuan Provincial Branch,A『icultural Bank ofChina 贷款号：8647一CN账号：229201 14040000925 Loan No.:8647一CN AccountNo.:22920114040000925 簖报单位：四川省财政厅货币种类：美元 三 （后续）(To be continued) 14 B * MPAIF7 k S)T] Part B-AccOUM Reconciliation Amount Amount Advanced by World Bank 3, 000,000M Deduct: 2. ,M Total Amount Recovered by World Bank 3. 3, 000,000.00 Outstanding Amount Advanced to the Designated Account at the End ofthis Period 4. 833,601.22 Ending Balance of Designated Account 2,168,704.37 Add- 5. Amount Claimed but not yet Credited at the End of this Period Fp MA 1 5 - Application No, 6, 2,168,7C4.37 Amount Withdrawn but not yet Claimed at the End of this Period 5 fQ f="P) 30.00 Cumulative Service Charges (If not Included in Item S or 6) W": 2,335.59 Deduct: 8 41'e, lf A ( VY A 41. 5 W p M 2,335.S9 Interest Earned (If Included in Designated Account) 9 3,000,000.00 Total Advance to the Designated Account Accounted for at the End ofthis Period 15 （五）财务报表附注 财务报表附注 L项目概况 世行贷款芦山地震灾后恢复重建项目一交通子项目贷款号为 8647一cN，估算总投资人民币30,950.50万元，其中利用世行贷款资金 3,000万粎元（用于工程直接费和先征费），项目内容包括成都市邓味市， 雅安市天全县、荣经县等3个县（市）共计3条约36公里农村公路灾 后恢复重建，以进一步提升公路应急抢险保通能力及服务水平。该项目 《贷款协议》《项目协议》于2016年H月23日正式签署，2017年3 月23日正式生效，关账日为2022年6月30日。 2．财务报表编制范围 本财务报表的簖制范围包括邓妹市、天全县、荣经县等3个县（市） 项目办的财务报表及四川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（200创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。本财务报表会计核算涵盖了2020年1月1日至2020年12月31日 所发生的费用。 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2020年12月31日美元兑换人民币的中间价作 为本次报表的计算汇率，即1美元＝人民币6.5249元。 4．报表科目说明 16 4.1项目支出 本期项目支出人民币42,918,050.11元，累计项目支出人民币 58,325,430.23元，占总投资计划人民币309,505,000.00元的28.540,0。 4.2货币资金 2020年12月31日货币资金余额为人民币8,08氏91 2.04元，其中指定账 户存款折合人民币5,423,925.11元，指定账户存款利息折合人民币 巧，239.49元；邓峡市子项目银行专户余额人民币2,641,747.44元。 4.3预付及应收款 2020年12月31日余额为人民币93,422,633.97元，具体为：工俘妹市子项 目预付工程款人民币4,225,526.80元、应收邓味市国土资源局项目征地拆 迁资金人民币48,063,652.00元、应收邓峡市财政局民工保证金人民币 398,629.22元和暂收第五期工程计量款人民币9,058,704,40元；天全县子项 目预付征地拆迁费一社保资金人民币25,840,728.56元、预付工程款人民币 5,835,392.99元。 4.4项目拨款 2020年12月31日余额为人民币1 20,875,275.97元，是各子项目县（市） 财政及项目业主单位到位的无偼配套资金及前期费用开支，占总投资计 划中应到位配套资金人民币114,505,000.00元的105.56％。 4.5项目借款 2020年12月31日项目借款余额为7,686,374.62美元，按汇率 IUSD=6.5249元人民币，折合成人民币5。，152,825.76元，具体为：国际复 兴开发银行贷款生效时扣簴的先征费75,000.00美元，占该类计划的 100.00%；农村公路工程提款4,611,374.62美元，占该类计划的15.41%; 项目指定账户周转金3,000,000.00美元。 4.6应付款 2020年12月31日余额为人民币18,751,195.08元，具体为：邓蛛市子项 l7 目应付第5期计量款人民币9,058,7 04.40元、应付保留金人民币 3,986,292.22元、应付民工工资保证金人民币398,629.22元、已收到财政拨 款尚未回补的工程计量款人民币14,115,152,33元；天全县子项目应付的图 审费人民币18,000.00元、复垦簖制费人民币34,720.00元、管线改拆评审 费人民币1,600.00元、征地拆迁费人民币1,014,6!2.70元、已提交工程计量 应付工程款人民币4,238,481.54元；荣经县子项目应付手续费人民币 155.00元。 4.7未交款 2020年12月31日余额为人民币34,635.69元，为邓蛛市子项目的市级 财政配套资金账户产生利息收入，该款项待项目结束销户后归还市财政。 4.8留成收入 2020年12月31日项目留成收入为人民币15,043,74元，为世行贷款项 目指定账户产生的存款利息。 5．指定账户使用情况 本项目指定账户设在中国农业银行股份有限公司四川省分行，账号 为22920114040000925，币种为美元。 6．其他需要说明的事项 截至2020年12月31日，邓妹市道火路项目，天全县始新路项目正常 开展。荣经县子项目中约3公里的道路和后段关联项目在《大熊猫国家公 园总体规划（征求意见稿）))(2019年10月）的一般控制区内，世行专家 根据世行安全保障政策的相关规定，评估认为荣经县农村公路项目及后 段关联项目的实施将对大熊猫国家公园生态环境带来重大影响，因此建 议取消该项目，并将贷款额度一并纳入城建子项目中期调整统筹使用。 目前，正在履行相关审批手续。荣经县子项目暂未提款，各项支出由地 方配套资金支付。 18 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview The Lushan Earthquake Reconstruction and Risk Reduction Project - Road Subproject financed by the World Bank, with loan No. of 8647-CN, has an estimated total investment of RM13309,505,000 yuan, including USD30 million from the World Bank (used as direct costs of the Project and front-end fees). The Project covers the post-earthquake reconstruction and risk reduction of 3 rural highways approximating 36kni in Qionglai City of Chengdu, Tianquan County and Yingjing County of Ya'an City, aiming at further improving the highway accessibility for emergency rescue and the service level. The Loan Agreement and Project Agreement were duly signed on November 23, 2016 and came into force on March 23, 2017. The closing date is June 30, 2022. 2. Consolidation Scope of the Financial Statements The consolidation scope of the financial statements covers the financial statements of the project offices of 3 counties (cities), i.e. Qionglai City, Tianquan County, and Yingjing County, as well as the designated account statement set in the Sichuan Provincial Finance Department. 3. Accounting Policies 3.1 The financial statements of the project were prepared in accordance with the requirements of the Accounting Methods for the World Bank Financed Project (CJZ [2000] No. 13) issued by the Ministry of Finance of the PRC. 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January 1 to December 3 1. The accounting for the financial statements covers the expenses incurred from January 1, 2020 to December 31,2020. 3.3 In this accounting practice, the "accrual basis" and the debit/credit double-entry bookkeeping method are adopted, and RNIB is used as the recording currency of bookkeeping. 3.4 The exchange rate of USD to RMB on December 31, 2020 of the People's 19 Bank of China is taken as the exchange rate for the financial statements, that is USD 1 = RMB 6.5249 yuan. 4. Explanation of Subjects 4.1 Total Project expenditures Total Project expenditures during the period was RMB42,918,050.11 yuan, and the cumulative project expenditures were RMB88,325,430.23 yuan, which accounted for 28.54% of the total investment planned to be RMB309,505,000.00 yuan. 4.2 Cash and Bank The balance on December 31, 2020 was RMB8,080,912.04 yuan, of which the deposits in the designated account were equivalent to RMB5,423,925.11 yuan and the interests on deposits in the designated account were equivalent to RMB15,239.49 yuan; the balance in the special bank account for Qionglai City subproject was RMVB 2,641,747.44 yuan. 4.3 Prepaid and Receivable The balance on December 31, 2020 was RMB93,422,633.97 yuan, of which the advance payment for Qionglai City subproject was RMB4,225,526.80 yuan, the land acquisition and demolition receivables from Qionglai Municipal Bureau of State Land and Resources were RMB48,063,652.00 yuan, the deposits for migrant workers receivable from the Financial Bureau of Qionglai City were RMB398,629.22 yuan, and the temporarily received funds for the fifth-phase engineering measurement were RM9,058,704.40 yuan; the prepayment for the land acquisition and demolition for Tianquan County subproject was RMB25,840,728.56 yuan, and the project advance payment was RMB5,835,392.99 yuan. 4.4 Project Appropriation Funds The balance on December 31, 2020 was RMB120,875,275.97 yuan, which was the available appropriation funds and upfront expenses from the county (municipal) department for each subproject and the project Owner, accounting for 105.56% of the available appropriation funds of RMB114,505,000.00 yuan in the total planned investment. 4.5 Project Loan The balance of the project loan on December 31, 2020 was USD7,686,374.62, equivalent to RMB50,152,825.76 yuan at the exchange rate of USD1 = RMB 20 6.5249 yuan, including the front-end fee of USD75,000.00 withheld when the loan from the International Bank for Reconstruction and Development took effect, which accounted for 100.00% of total planned fees of this kind; disbursement for rural highways of USD4,611,374.62, accounting for 15.41% of the total planned fees of this kind; and the revolving funds in the designated account of the project of USD3,000,000.00. 4.6 Payables The balance on December 31, 2020 was RMB18,751,195.08 yuan, including the payables of RM/B9,058,704.40 yuan for the fifth-phase measurement, the payable retention of RMB3,986,292.22 yuan, the deposits of RMB398,629.22 yuan payable for migrant workers' wages and the fiscal appropriation of RMB14,115,152.33 yuan received but not yet deposited for engineering measurement in Qionglai City subproject; and the payables of RMB 18,000.00 yuan for plan approval, RM/IB34,720.00 yuan for reclamation plan, RMB 1,600.00 yuan for review of reconstructing and dismantling pipelines, RMBI,014,612.70 yuan for land acquisition and demolition, and RMB4,238,481.54 yuan for project quantities submitted in Tianquan County subproject; as well as the payable of RMB 155.00 yuan for service charges in Yingjing County subproject. 4.7 Other Payables The balance on December 31, 2020 was RMB34,635.69 yuan, which was the interest income of the counterpart financing account from the municipal department of finance for Qionglai City subproject and would be returned to the municipal department of finance after the account is canceled at the end of the project. 4.8 Retained Earnings The retained earnings of the project on December 31, 2020 were RMB 15,043.74 yuan, which were interests on deposits incurred in the designated account for the project financed by the World Bank. 5. Designated Account The Designated account of the project is opened in US dollar currency at the Agricultural Bank of China Limited Sichuan Branch, with an account number of 22920114040000925. 6. Other Explanation for the Financial Statements 21 As of December 31, 2020, the Daozuo-Huojing Road Project in Qionglai City, and the Shiyang-Xinhua Road Project in Tianquan County were carried out normally. Highways approximating 3km in Yingjing County subproject and related projects at later phase are in the general control area under the Master Plan for Giant Panda National Park (Exposure Draft) (October 2019). Experts of the World Bank evaluated the projects in accordance with the World Bank's security policies and believed that the implementation of the rural highway project and related projects in later phase in Yingjing County would have a significant impact on the Giant Panda National Park's ecological environment, and thus advised canceling the project, and incorporated the loan limit to urban construction subproject's mid-term adjustment for overall use. The permitting procedures are now ongoing. No withdrawals have been applied for Yingjing County subproject, and the expenditures were covered by the local counterpart financing. 22 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对国家法规和项目贷款协定的遵守情况、内部控 制和项目管理情况、项目绩效及上年度审计建议整改落实情况。我们发 现存在如下问题： （一）违反国家法规或贷款协定的问题 未按进度申请财政配套资金，个别子项目账户资金余额人民币 2,607,1 1 1 .75元。 2018年，邓味市公路养护段按财政评审价申请并收到财政配套资 金一杆管线迁改资金人民币8,093,140.00元。截至2020年12月31日， 实际佼用杆管线迁改资金人民币5,486,028.25元，账户资金余额人民币 2,641,747.44元，其中管线迁改资金余额2,607,1 11 .75元，利息收入 34,63 5 .69元。 以上行为不符合《中华人民共和国预算法实施条例》（1995年国务 院第186号令）第三十八条“各级政府、各部门、各单位应当加强对预 算支出的管理，严格执行预算和财政制度……”和《财政部关于收回财政 存量资金预算会计处理有关问题的通知》（财预〔20 15〕81号）第四条 “除……外国政府和国际金融组织贷款赠款、代管资金以及其他经财政 部认定的财政专户资金外，其余财政专户资金中的存量资金应按照财政 存量资金进行统计和清理。其中：……其余财政支出专户资金应全部调 入国库……”的规定。 建议你局督促邓味市公路养护段整改，对匕述账户资金余额进行清 理上交财政，今后应按照项目进度申请财政配套资金，严格执行国库集 中支付制度。你局已接受审计建议。 （二）项目管理方面存在的问题 23 1．部分子项目会计核算不规范，涉及金额人民币18,50熟76&54元。 (1）天全县子项目少计建筑安装工程投资人民币4,355,189.40元。 2020年，天全县公路养护段未对已完成．工程计量并提交提款报账申 请的工程完成值按会计制度要求进行核算，少计建筑安装工程投资人民 币4,355,189.40元。 (2）邓蛛市子项目多计国外借款人民币14,150,579.14元。 2020年，邓蛛市公路养护段在未收到债务通知单情况下，对国外借 款进行会计核算，多计国外借款人民币14,150,579.14元。 以上行为不符合《世界银行贷款芦山地震灾后重建与减灾项目（农 村公路）财务管理手册》第一章第六条“项目会计核算任务各级项目 办负责真实、准确、及时、完整的对项目资金运行活动进行核算、反应、 管理和监督……”和《世界银行贷款项目会计核算办法》中“第304号 科目国外借款核算项目单位实际佼用和收到的国际金融组织资金。收 到国际金融组织付款通知单时，借记‘器材采购’‘银行存款’‘其他应 付款，等科目，贷记本科目”的规定。 建议你局认真履行财务管理职责，严格按照相关规定对县（市）项 目办会计核算进行指导，并督促天全县公路养护段、邓蛛市公路养护段 切实加强项目财务管理，按照相关规定调整会计账目和财务报表。你局 已接受审计建议。 2．个别子项目未及时清理往来款项，涉及金额人民币1,331.49万元。 20 18年5月和2019年H月，天全县公路养护段分别预缴天全县始 阳至新华农村公路工程项目被征地农民社保资金人民币1,331 .49万元和 人民币2,083.70万元。根据天全县自然资源和规划局和天全县社会保险 事务中心测算结果，该项目应预缴征地拆迁农民社保资金人民币 2,0 83.70万元，多预簴人民币1,331.49万元。截至2021年3月10日， 天全县公路局养护段未向县财政局申请办理清退多预缴的征地农民社 保资金人民币1,331.49万元，长期挂往来科目核算。 以上行为不符合《世界银行贷款芦山地震灾后重建与减灾项目（农 村公路）财务管理手册》第四章第二十三条“会计核算要求7，根据有关 规定，对固定资产、材料物资、往来款项等进行明细核算，定期清理往 来……”的规定。 建议你局督促天全县公路养护段整改，及时清理往来款项，尽快申 请办理退回多预簴的被征地农民社保资金归还县财政。你局已接受审计 建议。 3．个别子项目多支付保险费用人民币116,707.86元。 2020年12月，天全县公路养护段违反合同约定，列支不应单独支 付的建工意外险、附加意外伤害医疗保险费用人民币116,707.86元，上 述费用已摊入各相关工程子目单价和费率中并支付，多支付保险费用人 民币1 16,707.86元。 以上行为不符合《天全县始新路土建工程施工合同》中“第九部分 四．其他说明……扼包人应簴纳的所有税金和工伤事故险的保险费、人身 意外伤害保险费以及施工设备险保险费，由承包人摊入吝相关工程子目 的单价和费率中，不再单独计量’，的规定。 建议你局督促天全县公路养护段整改，追回多支付的费用，加强合同 管理，杜绝此类情况再次发生。你局已接受审计建议。 4．业主单位监管不严，项目管理人员变更不规范。 (l）天全县公路养护段同意施工单位更换不符合资质要求的安全 环保人员。 2020年12月，在施工单位抚州市恒通路桥工程有限公司提交人员 变更资料不齐全的情况下，天全县公路养护段同意施工单位更换项目安 全环保人员，更换后的安全环保人员罗某不具备合同约定的公路工程相 关专业工程师资质。 以上行为不符合《天全县始新路土建工程招标文件》中“2.5人员 安全工程师应具有公路工程相关专业工程师，安全生产考核合格证”, 《天全县始新路土建工程施工合同》中“第五部分特殊合同条款第5.1 款项目经理及其他组成人员更换需经业主同意并在相关部门备案…，二 第六部分一般合同条款9.1．…，．关键人员和设备的替换只有在其资历 和性能方面优于原投标文件中所提议的关键人员和设备时，并经项目监 25 理批准方可进行”的规定。 建议你局督促天全县公路养护段整改，加强对施工单位相关人员资 质的审核，要求施工单位严格按合同约定派驻技术负责人，杜绝此类问 题再次发生。你局已接受审计建议。 (2）工口妹市公路养护段未发现项目管理单位擅自更换项目管理人 员。 邓蛛市公路养护段未对项目管理单位成都市众信建设管理咨询有 限责任公司委派人员履职情况进行检查，未发现项目管理单位擅自将管 理人员张某更换为赵某的情况。 以上行为不符合双方签订的《工程项目管理服务合同》中“第四 条甲方的权利与责任……甲方对乙方人员实行不定期检查……第五 条乙方的权利与责任，．…，在合同期间乙方应保证人员的稳定，如变更 人员须征的甲方书面同意，否则按5000元／人进行处罚……”的规定。 建议你局督促邓蛛市公路养护段整改，加强对项目管理单位工作的 检查，要求项目管理单位严格按照合同约定执行，杜绝此类问题再次发 生。你局已接受审计建议。 5．个别子项目业主单位、监理单位监管不力，未督促落实水土保持 和安全防护措施。 天全县公路养护段未按照天全县水利局于2020年7月下发的《限 期整改通知书》的要求督促施工单位整改。抽查发现，截至2021年3 月，天全县始新路项目3＃弃渣场，仍未修建挡土墙及截排水沟、临时堆 土区未佼用土袋挡护、土方裸露，未使用密目网遮盖。监理单位吉林省 林泽公路工程监理咨询有限公司也未督促施工单位整改，环境保护和水 土保持检查、现场管理工作流于形式。 以上行为不符合《中华人民共和国水土保持法》第三十八条：“…… 对废弃的砂、石、土、歼石、尾矿、废渣等存放地，应当采取拦档、坡 面防护、防洪排导等措施……”、《四川省水利厅关于天全县始新路灾后 重建工程水土保持方案的批复》（)}｝水函〔2016〕238号）第十一条“建 设单位在工程建设中要重点做好以下工作：（二）严格按方案要求落实 水土保持各项措施…。二”和《天全县始新路项目施工监理合同》中“二、 26 乙方职责：3．现场设籮的环境保护和水土保持机构，应配备专职环保监 督员，专职负责本合同工程环境保护和水土保持的宣传、检查工作”的 规定。 建议你局督促天全县公路养护段整改，督促监理单位认真履职、施 工单位严格按照相关规定落实安全防护措施，加强施工现场安全文明施 工管理，杜绝此类问题再次发生。你局已接受审计建议。 6．项目管理不规范，部分子项目未按规定履行相关程序。 (1）邓妹市子项目未按规定履行项目建设用地报批程序。邓蛛市 道火路项目2016年12月取得原国土资源厅用地预审，并于2019年5 月正式开工建设。截至2021年3月，该项目尚未办理建设用地报批手 续。 以上行为违反了《中华人民共和国土地管理法》第五十三条“经批 准的建设项目需要佼用国有建设用地的，建设单位应当持法律、行政法 规规定的有关文件，向有批准权的县级以上人民政府自然资源主管部门 提出建设用地申请，经自然资源主管部门审查，报本级人民政府批准” 和原国土资源厅《关于世界银行贷款芦山地震灾后恢复重建邓妹市道佐 至火井农村公路项目用地预审的函》（)!｝国土资函〔2016〕743号）第六 条：“要按照土地管理法律法规和有关规定，依法办理建设用地报批手 续。未办理建设用地报批手续的不得开工建设”的规定。 建议你局督促邓妹市公路养护段整改，严格执行建设用地报批程 序，尽快按规定完善相关手续。你局已接受审计建议。 (2）邓峡市子项目弃渣场变更未履行临时用地及水土保持审批程 序。2020年3月，经业主单位邓妹市公路养护段、项目管理单位成都市 众信建设管理咨询有限责任公司、监理单位成都久久工程项目管理有限 公司、设计单位成都市交通规划勘察设计研究院同意，邓妹市子项目取 消原计划2处弃渣场，新建3处弃渣场，新增临时用地30.22亩。截至 2021年3月10日，新建弃渣场已使用，邓妹市公路养护段未办理新增 临时用地报批手续、新增弃渣场水土保持方案未报邓妹市水务局审批。 以上行为违反了《中华人民共和国土地管理法》第五十七条“建 设项目施工和地质勘查需要临时佼用国有土地或者农民集体所有的土 地的，由县级以上人民政府自然资源主管部门批准……”和《中华人民 共和国水土保持法》第二十五条“水土保持方案经批准后，生产建设项 目的地点、规模发生重大变化的，应当补充或者修改水土保持方案并报 原审批机关批准。”的规定。 建议你局督促邓睐市公路养护段整改，及时完善临时用地及水土保 持方案变更的报批手续，确保项目用地及环水保措施得到有效落实。你 局已接受审计建议。 （三）绩效管理方面问题 1．未严格按规定开展绩效评价工作。 邓味市、天全县子项目2020年未制定项目绩效目标，未按规定对 项目绩效情况进行监控和年终自评。 以上行为不符合邓蛛市财政局《邓峡币财政预算绩效管理办法》（邓 财发〔2018〕91号）中“第五条绩效目标编制（一）编制范围。 年初簖制预算时，除列入项目支出的人员性支出和津补贴外，其余的项 目均应簖报绩效目标……（二）簖制内容二，…第九条预算单位自行监 控。预算单位应按要求开展预算绩效运行跟踪监控二，…”、天全县财政 局《关于召开2020年部门预算簖制工作会议的通知》（天财发〔2019〕 302号）附件2《天全县财政局关于开展2020年部门预算绩效目标管理 工作的通知》中“第一条全面开展绩效目标管理……绩效目标的编制、 审核、批复与预算簖制同步进行……”、《关于切实做好县本级2020年 预算绩效管理有关工作的通知》（天财发〔2020〕116号）中“（三）事 中绩效监控，.．…1．单位自行监控。各预算单位对照本单位2020年部门预 算批复的项目绩效目标组织开展事中绩效运行监控……（四）事后绩效 评价1．预算部门自行评价各预算单位按照……组织开展部门预算支 出绩效评价”的规定。 建议你局督促邓味市、天全县公路养护段整改，今后严格按要求开 展绩效评价工作，杜绝类似情况再次发生。你局已接受审计建议。 2．项目进度滞后。 28 本项目2020年计划完成投资额％,610,634.00元，实际完成投资额 47,156,531.65元，占计划完成额的48.81％。截至2020年12月31日， 累计完成投资额88,325,430.23元，占应完成投资额137,779,532.58元的 64.11％。项目进度滞后原因： (l）项目前期组织筹备工作推进滞后。一是项目前期筹备工作时 间较镼。从2015年初项目启动至2019年施工招标工作基本完成，时间 跨度镼达5年。邓妹市子项目2019年5月正式开工，天全县子项目2019 年11月正式开工。二是招投标完成工作滞后。天全县2018年10月完 成土建招标文件簖制，2019年5月开标，经过两次质疑处理，2019年8 月完成招标工作。三是项目管理人员缺乏经验，对世行贷款项目工作不 够熟悉，影响项目推进。 (2)2020年项目推进滞后。一是天全县子项目施工单位履约不力。 施工方派驻现场管理人员能力不足，管理不到位，现场管理混乱。如： 2020年6月以来先后4次更换施工队伍，影响工程推进速度；施工质量 标准不高，未按照技术标准施工，现场监理开具监理工程师通知30余 份，要求工程整改等，特别是2020年7月1日监理出具工程暂时停工 令，截至2021年3月8日部分问题还未整改完成，严重影响施工进度。 二是新冠疫情和特大暴雨影响。邓味市、天全县子项目为落实疫情防控 管制措施，项目推迟复工，施工工期均推迟3个月左右；受“8.H&&8.18& 等特大暴雨影响，项目沿线多处边坡出现滑坡，且多处滑坡段坡顶出现 开裂，部分结构物受损等险情，导致施工工期均延迟2个月左右。 建议你局督促邓妹市、天全县公路养护段采取有效措施，积极推进 项目实施，提高资金佼用绩效。你局已接受审计建议。 （四）上一年度审计发现问题未整改情况 上一年度审计报告中披露的7个问题中6个问题已整改，“项目进 展簓慢”问题未整改。 29 111. Audit Findings and Recommendations Audit Findings and Recommendations Tn addition to perfort-ning the audit and expressing an opinion on the financial statements, we also made observations with respect to compliance with applicable state laws and regulations and the loan agreement of the relevant entities, internal control and project management, project perfon-nance and the rectification as recommended by the auditors in the previous year during the project implementation. We found the following problems: Non-compliance with state laws and regulations or the applicable provisions of the loan agreement The financial counterpart funds were not applied as scheduled, and there was a balance of RMB 2,607,111.75 Yuan in the individual subproject's account. In 2018, Qionglai City highway Maintenance Division applied and received a counterpart fund of RMB8,093,140.00 yuan for demolishing and reconstructing poles and pipelines at prices evaluated by the department of finance. As of December 31, 2020, the funds actually used for demolishing and reconstructing poles and pipelines were RMB5,486,028.25 yuan, and the balance in the account was RMFB2,641,747.44 yuan, including the funds of RM132,607,111.75 yuan for demolishing and reconstructing poles and pipelines and the interest incomes of RMB34,635.69 yuan. This practice did not comply with Article 38 of Regulation for the Implementation of the Budget Law of the People's Republic of China (No. 186 Order promulgated by the State Council in 1995), which stipulates that, the governments, departments, and units at all levels shall reinforce the management over budget expenditures, and strictly execute the budget and financial system and Article 4 of the Notice on Issues Concerning the Accounting Treatment of Recovering Financial Stock Funds Budget of the Ministry of Finance (CY [2015] Alo. 81), which stipulates that,except for loans, grants and escrow funds from foreign governinents and international financial organizations, and funds in special fiscal accounts that are recognized by the Ministry of Finance, the stock funds of the other funds in special fiscal accounts shall be counted and cleared up as fiscal stock funds, 30 and among them: ...The other funds in special fiscal accounts for fiscal expenditures shall all be transferred to the national treasury. We suggested your bureau urge Qionglai City Highway Maintenance Division to rectify, clear up the fund balance in the above-mentioned account, and handover it to Finance Bureau of Qionglai City. In the days to come, your bureau shall apply for counterpart financial funds as scheduled, and strictly implement the centralized treasury payment system. Your bureau accepted the suggestion. Issues on Project Management 1. There was non-standard accounting for individual subprojects, involving RM/1B 18,505,768.54 yuan. (1) There was RMB4,355,189.40 yuan that was understated for the investment in construction and installation works of Tianquan County subproject. In 2020, Tianquan County Highway Maintenance Division failed to measure the work amount completed, but submitted the withdrawal and reimbursement application with a work amount value and accounted as per the accounting system requirements, as a result of which, an investment of RMB 4,355,189.40 yuan in construction and installation works was understated. (2) There was RMB14,150,579.14 yuan of Foreign Loan overstated for Qionglai City subproject. In 2020, Qionglai City Highway Maintenance Division received no debt notice but conducted accounting on the Foreign Loan, and Foreign Loan of RMB 14,150,579.14 yuan was overstated. The above practice did not conform to Article 6 "Project Accounting Tasks Project offices at all levels shall be responsible for truly, accurately, timely, and completely accounting, responding to, managing and supervising the project funds operation activities..." of Chapter I of the Financial Management Manual for Lushan Earthquake Reconstruction and Risk Reduction Project (Rural Highways) Financed by the World Bank and "Item 31 304 Foreign Borrowings The funds actually used and received by the accounting unit from international financial organizations. When receiving the payment notice of the international financial organization, a debit shall be recorded to the items of 'Equipment Procurement', 'Cash in Bank', and 'Other Payables' and a credit shall be recorded to the item of 'Foreign Loan' in the Accounting Methods for the World Bank Financed Project. We suggested that your bureau earnestly perform the financial management responsibilities, guide the financial accounting of project offices of counties (cities) in strict accordance with relevant requirements, supervise and urge Tianquan County Highway Maintenance Division and Qionglai City Highway Maintenance Division to rectify, effectively improve the project financial management, and adjust accounting and financial statements in accordance with relevant provisions. Your bureau accepted the suggestion. 2. There were receivables and payables that were not timely cleared in an individual subproject, involving RMB 13,314,900 yuan. In May 2018 and November 2019, Tianquan County Highway Maintenance Division prepaid two social security funds for land-expropriated farmers, which were RMB 13,314,900 Yuan and RMB 20,837,000 Yuan respectively, for the Shiyang-Xinhua Rural Road Project. Based on the result calculated by Tianquan County Natural Resources and Planning Bureau and Tianquan County Social Insurance Affairs Center, the social security funds for land-expropriated farmers that should be prepaid for this project was RMB 20,837,000 yuan. Then, apparently, RMB13,314,900 yuan was over prepaid. As of March 10, 2021, Tianquan County Highway Bureau Maintenance Division had not yet applied to the bureau of finance of the county for checking and returning the over prepaid social security funds of RMB 13,314,900 yuan, and has long term accounted it by crediting it to the item of "Receivables and Payables". The above practice did not conform to Article 23 "Accounting Requirements 7. In accordance with relevant regulations, conduct detailed accounting of fixed assets, materials, receivables and payables, etc., and regularly clear up receivable and payables..." of Chapter IV of the Financial Management Manual for Lushan Earthquake Reconstruction and Risk Reduction Project (Rural Highways) Financed by the World Bank. We suggested that your bureau urge Tianquan County Highway 32 Maintenance Division to rectify, promptly clear up the receivables and payables, and apply for returning the over prepaid social security funds for land-expropriated farmers and hand them over to the bureau of finance of the county as soon as possible. Your bureau accepted the suggestion. 3. There were overpaid insurance fees in an individual subproject, involving RMB 116,707.86 yuan. In December 2020, Tianquan County Highway Maintenance Division violated the contract by disbursing the construction accident insurance and additional accidental injury medical insurance expenses that should not be separately paid at RMB 16,707.86 yuan. The above expenses were allocated to the unit prices and expenses of the relevant sub-items and paid. The over-paid insurance expenses were RMB 116,707.86 yuan. The above practice did not conform to the provisions of "Part IX - IV. Other Description... All taxes and work-related accident insurance premiums, personal accident injury insurance premiums, and construction equipment insurance premiums that should be paid by the contractor, shall be allocated by the Contractor to the unit prices and rates of relevant sub-items and shall not be separately measured" in the Construction Contract for Civil Engineering of Shiyang-Xinhua Road in Tianquan County. We suggested that your bureau urge Tianquan County Highway Maintenance Division to rectify, take the overpaid expenses back, improve the contract management, and prevent similar circumstances from happening again. Your bureau accepted the suggestion. 4. Poor supervision was given by the Owner and the change of project management personnel was not standardized. (1) Tianquan County Highway Maintenance Division agreed with the Contractor to replace a safety & environmental worker with the one who was not qualified. In December 2020, Tianquan County Highway Maintenance Division agreed with the Contractor Fuzhou Hengtong Road and Bridge Engineering Co., Ltd. to change a safety & environmental worker even though the personnel change-related materials submitted by the Contractor were not 33 incomplete, and Luo, the newly changed safety & environmental worker, does not have any highway engineering related professional engineer qualifications as agreed in the contract. The above practice did not conform to the provisions of "2.5 Personnel - The safety engineer shall have highway engineering related professional engineer qualifications and safety production assessment certificates" in the Bidding Document for Civil Engineering of Shiyang-Xinhua Road in Tianquan County, and "Party V Special Contract Terms Article 5.1 The change of project manager and other personnel shall be approved by the Owner and recorded by the relevant department... Part VI General Contract Terms 9.1 Key personnel and equipment can be only replaced with ones better, in both qualification and performance, than those proposed in the original bidding document after the project Supervisor agrees to replace" in the Construction Contract for Civil Engineering of Shiyang-Xinhua Road in Tianquan County. We suggested that your bureau urge Tianquan County Highway Maintenance Division to rectify and improve the review on qualifications of relevant personnel, require the Contractor to assign the technical director in strict accordance with the contract, and prevent similar problems from happening again. Your bureau accepted the suggestion. (2) Qionglai City Highway Maintenance Division failed to find that the project management unit changed the project manager without its permission. Qionglai City Highway Maintenance Division did not inspect the performance of duties of the person assigned by the project management unit Chengdu Zhongxin Construction Management Consulting Co., Ltd., and failed to find that the manager Zhang was changed to Zhao by the unit management unit without its permission. The above practice did not conform to the provisions of "Article IV Party A's Rights and Responsibilities...Party A shall conduct irregular inspection on Party B's personnel ...Article V Party B's Rights and Responsibilities.. .Party B shall ensure the stability of personnel during the Contract, and any personnel change shall be approved by Party A in writing. Otherwise, a penalty of RMB 5,000 Yuan/person shall be made..." in the 34 Project Management Service Contract signed between and by the Parties. We suggested that your bureau urge Qionglai City Highway Maintenance Division to rectify and improve the inspection on the project management unit, require the project management unit to perform its work in strict accordance with the contract, and prevent similar problems from happening again. Your bureau accepted the suggestion. 5. Individual subproject's Owner and Supervisor were lax in supervision and failed to urge the implementation of water& land conservation and safety protection measures. Tianquan County Highway Maintenance Division did not urge the Contractor to rectify in accordance with the requirements of the Notice of Rectification by Deadline issued by Tianquan County Water Resources Bureau in July 2020. By random inspection, we found that as of March 2021, the No. 3 spoil yard of Shiyang-Xinhua Road Project in Tianquan County had not been built with retaining walls and intercepting drains, and had not used soil bags for retaining, and had not used the dense screen to cover the earth exposed in the temporary mound area. The Supervisor Jilin Linze Highway Engineering Supervision Consulting Co., Ltd. also failed to urge the Contractor to rectify. The environmental protection, water & land conservation inspections, and on-site management were merely formalistic. The above practice did not conform to the provisions of Article 38 "...Measures such as retaining, slope protection, flood prevention and drainage shall be adopted for the storage places of abandoned sand, stone, soil, gangue, tailings, waste residue, etc..." in the Water and Soil Conservation Law of the People's Republic of China, Article XI "The Contractor shall focus on the following tasks in project construction: (2) Implement various water and soil conservation measures in strict accordance with the requirements of the plan..." in the Reply of Sichuan Provincial Water Resources Department on the Water and Soil Conservation Plan for the Earthquake Reconstruction and Risk Reduction Project of Shiyang-Xinhua Road in Tianquan County (CSH [2016] No. 238), and "II. Party B's responsibilities: 3. The environmental protection and water and soil conservation institutions set up on the site shall be equipped with full-time environmental protection Supervisors who are responsible for the publicity and inspection of the environmental protection and water & soil 35 conservation of this contract project" in the Construction Supervision Contract for Shiyang-Xinhua Road Project in Tianquan County. We suggested that your bureau urge Tianquan County Highway Maintenance Division to rectify, the Supervisor to perform duties earnestly and the Constructor to implement relevant safety protection measures in accordance with relevant provisions, strengthen the management of safe and civilized construction on the site, and prevent similar problems from happening again. Your bureau accepted the suggestion. 6. The project management was not standardized, and some subprojects did not perform relevant procedures according to relevant procedures. (1) Qionglai City subproject failed perform the procedures for approval of project construction land as per the regulations. The Daozuo-Huojing Road Project in Qionglai City was pre-approved by the former Department of Land and Resources in December 2016 and started in May 2019. As of March 2021, the procedures for approval of project construction land had not yet been gone through. The above practice violated Article 53 "Where an approved construction project requires the use of state-owned construction land, the constructor shall, with relevant documents stipulated by laws and administrative regulations, submit an application for construction land to the department of natural resources of the people's government at or above the county level with the authority to approve, and the department of natural resources shall review it and report to the people's government at the same level for approval" in the Land Administration Law of the People's Republic of China and Article 6 "The procedures for approval of construction land shall be handled in accordance with the land administration laws and regulations and relevant provisions. Those for which the approval procedures have not been gone through shall not be started" in the Letter on Pre-review of the Land for Lushan Earthquake Reconstruction and Risk Reduction Project - Daozuo-Huofing Road Project in Qionglai City - Financed by the World Bank (CGTZH [2016] No. 743) issued by the Former Department of Land and Resources. We suggested that your bureau urge Qionglai City Highway Maintenance Division to rectify, strictly follow the procedures for approval of 36 construction land, and go through all relevant formalities as per provisions. Your bureau accepted the suggestion. (2) Procedures for temporary land use and soil and water conservation were not gone through when changing the spoil yard of Qionglai City subproject. In March 2020, by the consent of the Owner Qionglai City Highway Maintenance Division, the project management unit Chengdu Zhongxin Construction Management Consulting Co., Ltd., the Supervisor Chengdu Jiujiu Engineering Project Management Co., Ltd., and the designer Chengdu Transportation Planning Survey Design and Research Institute, Qionglai City subproject cancelled the 2 spoil yards originally planned for Qionglai City subproject, construct another 3 new spoil yards, increase a temporary land area of 30.22 mu. As of March 10, 2021, the new spoil yards have been put into use, but Qionglai City Highway Maintenance Division still has not gone through the procedures for approval of new temporary land, and the water and soil conservation plan for the new spoil yards has not been submitted to Qionglai Municipal Water Affairs Bureau for approval. The above practice violated Article 57 "Where construction projects and geological surveys require the temporary use of state-owned land or land collectively owned by farmers, it shall be approved by the department of natural resources of the people's government at or above the county level..." in the Land Administration Law of the People's Republic of China and Article 25 "Where there are major changes in the location and scale of the production and construction project after the water and soil conservation plan is approved, the water and soil conservation plan shall be supplemented or modified and submitted to the original approving authority for approval" in the Water and Soil Conservation Law of the People's Republic of China. We suggested that your bureau urge Qionglai City Highway Maintenance Division to rectify, go through all relevant procedures for approving the change of the temporary land use and water and soil conservation plan as soon as possible, and ensure that the project land use, environmental protection and soil & water conservation measures can be effectively implemented. Your bureau accepted the suggestion. Issues on project performance 37 1. Performance evaluation was not carried out in strict accordance with the provisions. There were no project performance objectives set for Qionglai City subproject and Tianquan County subproject in 2020, and they failed to monitor and annually self-evaluate the project performance as per the provisions. The above practice did not conform to the provisions of "Article 5 Performance Objective Preparation (1) Preparation scope... When preparing the budget at the beginning of the year, except for the personnel expenditures and subsidies included in the project expenditures, the performance objectives for the rest items shall be prepared... (2) Contents of preparation... Article 9 The budget unit shall monitor itself. The budget unit shall carry out tracking and monitoring of budget performance operation as required..." in the Measures for Financial Budget Performance Management of Qionglai City (QCF [2018] No. 91) issued by the Financial Bureau of Qionglai City, "Article 1 Performance objective management in an all-round way...The preparation, review and approval of performance objectives shall be carried out simultaneously with budget preparation..." in Appendix 2 Notice of the Financial Bureau of Tianquan County on Carrying out the 2020 Departmental Budget Performance Objective Management of the Notice on Convening the Working Conference on 2020 Departmental Budget Preparation (TCF [2019] No. 302) issued by the Financial Bureau of Tianquan County, and "(3) In-process performance monitoring... 1. The unit monitors itself. Each budget unit shall organize and monitor the in-process performance in accordance with the project performance objectives approved in comparison with the 2020 departmental budgets of the unit... (4) Post-performance evaluation 1. The budget department evaluates itself. Each budget unit shall organize and conduct departmental budget expenditure performance evaluation in accordance with..." in the Notice on Carrying Out the 2020 Budget Performance Management at the County Level (TCF [2020] No. 116). We suggested that your bureau urge Qionglai City & Tianquan County Highway Maintenance Divisions to rectify, and carry out performance evaluation in strict accordance with the requirements in the future, and prevent similar circumstances from happening again. Your bureau accepted the suggestion. 38 2. The project progress lagged. The investment planned to be completed for this project in 2020 was RMB 96,610,634.00 yuan, and the actually completed investment was RMB 47,156,531.65 yuan, accounting for 48.81% of the total planned. As of December 31, 2020, the investment that had been cumulatively completed was RMB 88,325,430.23 yuan, accounting for 64.11% of the investment of RMB 137,779,532.58 yuan that should be completed. Reasons why the project progress lagged: (1) The progress of pre-organization and preparatory work for this project lagged. First of all, the time used for preliminary preparation was too long. From the start of the project in early 2015 to the basic completion of construction bidding in 2019, it took as long as 5 years. Qionglai City subproject was officially started in May 2019, and Tianquan County subproject was officially started in November 2019. Secondly, the completion of bidding lagged. Tianquan County completed the preparation of civil construction bidding documents in October 2018, opened the bid in May 2019, and completed the bidding in August 2019 after being questioned twice. Thirdly, the project management personnel lacked experience and were not familiar with the work of the World Bank-financed project, and thus lagged the project progress. (2) The progress of the project lagged in 2020. Firstly, the Contractor for Tianquan County subproject performed the contract poorly. The management personnel sent by the Constructor to the site were inadequate in capability. The management was not proper and sufficient, and the on-site management was chaotic. For example, since June 2020, the construction team had been changed 4 times, which slowed down the project progress speed; the quality standards for construction were not high, and they failed to construct in accordance with the technical standards. The on-site Supervisor issued more than 30 supervision engineer notices requesting project rectification, etc., and especially, a temporary cease work order on July 1, 2020. But as of March 8, 2021, some issues have not yet been rectified, which has seriously lagged the construction progress. Secondly, the COVID-19 outbreak and exceptional rainstorms brought great impacts. To implement the measures for epidemic prevention and control, Qionglai City and Tianquan County subprojects postponed work resumption, and the 39 construction duration was postponed by about 3 months; as consequences of "8.11" and "8.18" exceptional rainstorms, landslides occurred in many side slopes along with the project, the tops of slopes in many landslide sections were cracked, and some of the structures were damaged, which postponed the construction duration by about 2 months. We suggested that your bureau urge Qionglai City and Tianquan County Highway Maintenance Divisions to take effective measures, promote the project implementation actively, and improve the funds use performance. Your bureau accepted the suggestion. The Followed-up of Previous Recommendations Six of the seven issues disclosed in the audit report of the previous year have been rectified. The issue of "the project progress was slow" has not been rectified. 40