80593 1 5 JUL 2013 tf ~A~#:- ;fp @J -i:;: rtJ -iJ~ Wit JT Yunnan Provincial Audit Office of the People 's Republic of China $' it * % Audit Report -z;:-"' 7~ ~ ( 2013 J 59 % YUNNAN AUDIT REPORT [2013) N0.59 ~§~# : ~fi~~~~~~~~~~~§ Project Name: Kunming Urban Rail Project Financed by the World Bank 8037-CHA Loan No.: 8037-CHA Project Entity: Kunming Rail Transit Co.,Ltd ~it1t-~ : 2012 • Accounting Year: 2012 § ~ Contents '$ it ~iP ~ .9J.. ........................................................................................ I I. Auditor 's Opinion ........................................ ..... ....................................... 3 _::., ~1J- tlt*&~~t&*:!Sft'li ................................................................ 6 IT. Financial Statements and Notes to the Financial Statements ............... 6 (-) i1.f~-f-~.:& ........................................................................... 6 i. Balance Sheet ......... .... .. ....................................... ....... .................... 6 ( .::_ ) :rJli: § ...8 *-.lJt * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . .. ii. Summary of Sources and Uses of Funds by Project Component. 8 < .=. ) ~ ~ tJJ- Jt tJL 1-r ·tw{)L *. . . . . . ..... . . . . . . . . . . . . . . . . . . . o 1 iii. Statement of Implementation of Loan Agreement.. .......... ... ...... 10 ( 12!1 ) 1t ffl ~ ? :f~* . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . ... 11 iv. Special Account Statement .. ......... .............................................. 11 ( 1i ) .\ilr ~:f~*:~t1i ..................................................................... 13 v. Notes to the Financial Statements...... .. ....... ..... .. ... ....................... 15 =- , wit £~£f-J 1PJ i@&Jtix .................................................................. 11 III. Audit Findings and Recommendations ......... .. ........ .... ............ .. .. ........ 18 ~ 1fJ $it J t1t !f.lR q-r~ ;¥~ ~ aA rfH~ "$ *)L:i!~ii ~ § 2012 1f:- 12 JJ 3 1 8~·~~·*&~~~8~~~~~§*~*·~-~~~fi~~*~ ~)f)!*? ** ~ ~ ~ § ~ !M ~ ~*& !M fr ~*13ft :ii ( ~ 6 Yf ~ ~ 12 Yf). C- )~~~ff$Q&~~~M~ ff~M**~~ -~ ~~~~~***~~-~~·* · ~§~~*&~-~~~fi~~ *~~*~~•«·•~•m*~**~~~~~*fi~•~·~#•~ g~f5 : 1. ~ !ffi cp 00 ~ 1? it >i Y!~ • ~it ~J ~ ~ ,2f.cr~ § ~ ;¥x tdJ- Jt ~ :t ;Jnt 18 Ft't-RecE'!VablP t.ylj~ Ul hYf.;J; ri ffl W "o1·l d Bank Loan Ser\'1 ce 19 Ft>f' Rec·PivabiE' {., 11 ffriJ~.fr~larketable Securities 20 /\. ltiliE~f"{:-itTotal Fixed Assets 21 lnliEI?if"J!l".iil'FixE'cl Assets . Cost 22 i!i&i.: lf:ii tiTII ILess:Accumulated DepreciaL ion 23 li'if~t'!f"I¥00:Ftxcd Assets • t-iet 24 l?i:~Emf"7l'l.llliFixed Assets PPncling Disposal 25 f~~Jlltlr'il~~rz:m~Fixed Assets Losses 1n Suspense 26 ~ ~'::r.i ffl ~itTota I Appl1cat1on of Funds 27 3, 109.547, 768 91 4, 123, 369, 338 b( 1tf ~lf- {;tr BALANCE SHEET II *(.: . ) 20 1 2~- 1 2R31 !:l(as of 1213 1 '20 12 ) ,~, r ; ft: t!t n 1#- ~k If. nJJ Jt rtJ 4J-..~( xll!l Jll EJ ProJeCt Name:Kunming l rban Rail Project Financed b~ the World Ban!,. iffp"" f.i: rE. B}J*It.::( r if 'F f1 'l.' ~; Prepared bv: Kunmmg Rail Transit Co.,Ltd . Unn:RMB Yuan Currenc\ - 'ti 1:- ~ ~Vff. iT()~ J!/lfJJ Ul JJJ i-:AA ~OUI'C~S or Funds Ll 111' No. lll:'ginning Bal11urt Enrl wg Bal i10t'f' ' •ro U JJ.Li)(frit1otnl l'rojecl I 0.00 0 Oll App1 OJH at ion Fundss - · J~! t:J ~4- 1 ;J!!i 11~4·~~~-f\Project 2 172.21 I. ():!0. 91 I 71, ·125. ~%. H9 c•. pltal and Capital Surplus J~rp; fi1~ Jr. Inc I ud Lng: Gnm t s 3 .=., J~ tJ fl{ .11; t;·itT o ud Project 4 2,419.525,675 00 3,390,082,125.00 Investments Loa11 I. Jijj t:f1Q'e'if.!L}j;Total Pro,1ect 5 2,004.725, 675 00 J.390,082. 1~5 . 00 Investments Loan < I ) ILl :$-HI-\ ,ij; Foreign Loan 6 4, 725,675.00 I 05. 282. l 25. 00 Jtrr: ff111J·ff~ t-JJ-~ lncludwg:llli\ 7 !IIJl.J. ~V'~ff:£1t\ fiT BRU 8 4, 725.675.00 105,282. 125.00 tk:*D{'f{jjt):Tcchn 1 co I 9 Cooperation "*'frA!I!~Co-Fl nanc ing 10 (2) lil~f'd~Domestic Loan 11 2,000,000. 000.00 3.2R4,800,000.00 2. ltit!!fl-\fi,XOther Loan 12 414 , 800, 000 00 0. 00 114. I:~-/P.Ai5tVi f1L;;1:;Appropt ia lt on of 13 Investment Loan Jtcp: fk AWJfm',11;Inc I udtng: W or I d 14 Bank Loan ]i. ~~f9ifi:~~Bond Funds 15 _,_ /'. {~i"l'Jiill:d xii:Constucuon 16 Ewend1tures to be Offset -t. l•'•f-t.:AfrrrTotal Pavable 17 517.810,473.00 558.861.917.77 Jkcp: 1•.; f:j lli h11t :iJ\ :.ftJ.~.I nc lud i ng: 18 llorlcl Bank Loan Interf'st Pavahlt> l•id:jillh!ft,i;)\Jt~i.tt'l World Bank 19 Loan ( omm i Lment Fer P;wabl e J•it.{:j ill1i 9\' ,;);: rl'i rt1 ~~ W or I d Bank 20 Lmm Servtce-Fee Pavahlf' Jl.., ,J.~.;;XfritOther Pavahlc· 21 )L, I mnlA~~"Appropriation of 22 Funds I , M!&t&ARetained Earning 23 Vi~~ .il~~ {:- itTotal Sources of Funds 24 3. 109,547,768 (j) "· 123. 369,338 66 < ::::. ) ~ 13 :!& JJU~: ii. Summary of Sources and Uses of Funds by Project Component Jji 13lttlt* ( - ) (SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I ) ~W!i\~20121f.l2J] 318 !For t he Period Ended 12/31/2012) ·~~~:~ft·~~~~$·-~~~§ ProJeCt Name.Kunmmg Urban Rail ProJeCt Financed b) the World Bank fit!l-"f1.1!1: It a)J tlt.l@ ~iifn'!P~ 0 iiJ r'f- iir : A !t rJi :it Prepared b) Kunming - Rail I ransit Co .. Ltd Currenc\ Unit:Rl\18 Yuan 41:W!Cu t t·en l Period ~ i I Cumula I i \'I" ¥1f iH.•Jt w .f. Jlll Jl tt Wi 4>- llll :,;,; nli.l:t 10\ II.~. ~H•J tW ~ii ·'J(; h.l(,g, ~il ;,i;t< Cun ent Penod Ct11rent Pet iod \ Cun ent Year Budg!'t Life of Pad Cumulative ActuAl (umulati\·e \ r ompll'tl'rl Ac t ual tompleted ~i ~lf,;}l;;i{l- il To t al Sources of Fundss 1. 752, 165,300. 00 972, 770, 121 98 20 17\ 13.057,233. 300.00 3. 561,507, 120. 89 2i. :10" lflj:'< ~l!!tffi ~H'tJ:X In t Pmlll iona 1 677,211,300.00 100,556.150 00 H.l:lo'·• 2,019,000.000.00 105.2~2.125. 00 5. II F111811Cll1" I IBRD 577,2 11,300.00 100,556, 150.00 H . 85~ 2,019,000,000.00 105,282,125.00 l. 81\ 2 IDA · • if~ff~~rountctpilrt Financing I.Oi5,25 l,OOO.OO 872,213, 67 1. 98 2J.iJO\ 11,008,233,300.00 3, •159, 225, 295. 89 31. 1 2~ 1. !l!l)J il{lf.Jf£:il:counterp;nt fund hom local government 1.018,812.800.00 2. 213, 67·1 98 0.22\ 2, 752.058,325.00 171. ·125. 295. 89 fi . 31 2. ~+. t:lfnselr-tundcd 3, 056, ·138, 200. 00 870,000,000.00 28. 16~ 8. 256, 17-1. 975 00 )00 00 3, 2RI. 800. • 39 74 ~i~@l l -fr il · Tota l Aooli cation of Fundss 1, 752,165,300. 00 I, 857, 966, 073. 91 39.09\ 13,057,233,300.00 3, Ui7, 272. 350. 0·1 21 ts•. '{: tf -885.195,9 18 96 107' .235, 010. !l5 llt ffen'nce ~ ~~ ~ I. At&J})..-(tfl:. Chnng in Rt>cP.ivables 453, 151, 858 25 819,085,621 25 2. Rf·llA;t:ft Chang in Paynl: le 11,051, 1-H 17 558, 861,91" ii .l. L~lfj ~i -:i:: :~ it Chang in Cnsh and Bnnk - 1.297,296,362. II IIi. 0 II . 361 37 I ltf~OthCI ' ·- 8 - 1!ff §l :!if If-* ( ::- ) (SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT ll) \ :$El t ft: W fi I,H,t It e}jJHi. rjr til.>£~ 1ffi. ~ El PRO.IFCT NAME Kunmmg Urban Raal ProJeCt Financed b} the World Bank ~ 4fi!HI.. JJ.tiL-:t ~ 1~ 'M m 1t. a 0 6J $.11 : ~~ R. iii 7t Prepared b) Kunmmg Raal rransat Co .Ltd Current \ Umt RMB Yuan Jiji II .\til\ Project Expendi turPs Iil!IIJ~fi: ~il .x:1 : ~f.l !*.Ill 'tU'~Fi x ed Assets Tr ansferred rr:~ nt 1H~t~Jili f f ~II H:IINiti yf,{~~,"" :£1~~1" i.i'l~~i"" C'onSIUCII011 [ili]~~d'' F ixed lntangahle Projf'CI Cumula t ive Component A1110unt Current Inves tmen t s Defened Work in Progress F ~pcndnures L o be Asset Transferred-nut Asset Asset Asset D1sposted h!.tYl ~lt.ll! ~ill! :Pj !"\ r r,• lht.o Ot llw l'ni iL·cl Ku nmi n~: llail ll ;ll1~1l Lane :l, I :)7, :172, :lSO. 01 - - - - :1, l!i7, :!72, :1.;(1, 0 I :I • if·£,: I f'r¥1fi l,:'iOti, !lR:!,67:17Ji I, 30(1, !18:.?. 67:1. 75 -· lHfH~'t:i I. ti:'ltl, ~!19, t\76. :!9 1,65U,289,676. 29 I - y - ( .=_ ) ~ ~ t9J. it t)tA-T ·tt 1t~ iii. Statement of Implementation of Loan Agreement ~ ~tit ;t t)Lff ~tt ~* STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT ;.t..Mti,~2012~12f] 31 El (For the Period Ended 12/31/2012) ~§ .i; ft: ~n''f:} ~ fb II})~$ tlt.it~:iffl~ 13 PROJECT NAME:Kunming Urban Rail Project Financed by the World Bank !JiJ :t!H2 fft_: rl D}) *A.it~ :iiHHR -0- ~ if. i!i. : A !Vfi :7t Prepared by: Kunming Rail Transit Co .. Ltd Currenc) Unit:RMB Yuan ~Ji!1HiJtft®i *WHJU~.Mt ~{11 · t'ti}~~ ~Jl!J Loan /\mount CultenL-period W1thdrawls Cumulative Wi t hdrawls Category N.Jl; • ~)!,; llf~ AR: f1i J~~ -tfi ft A R: f!i USD USD RMB USD R\1B I • . rJ!Ci vi I W o1·ks 209,359,900.00 5,355,043.56 33.64.7,576. 30 5. 355. 0-13. 56 :n. lin. 5i6. :~o 2. .8t'ltJGood$ 86.890.100.00 :l. ~~ifiHlll*.fll JiliJIJConsult ing 3,000, 000.00 '-il'l vice &Training I. 1Htt\!IW~tl!nallocated - fi. 1.tffl1Jf(;f'SpE'l:ai I Account. - !i. )\JiEtHront-end Fee 750,000.00 750,000.00 -1,725.675. ()() ~ il·lo1 Rl 300,000,000.00 5.355,013. 56 33. 617. 576. !I) 6, 105, 0-U. -, JR. :17:3. 25 1. 30 ~ 10 - ( rzg ) ~ }fj ,91~ /' lli* iv. Special Account Statement {-m~?~x* SPECIAL ACCOUNT STATEMENT ~0$#:~ft~~~~~*a•~•~§ l'ro,ect Name: Kunm111g Urban Rail Prqject Financed b} ff r> ft : * .P tt 1rHi :E. ~~ Pt ft. r~ t .fr Oeposrwry Bank:CHINA ClfiC BANK KUNMINCi the World Bani.. BRANCH DONG FENG DON(, IWAI> l:lRANCH 7t.#7.%: 1 8037-CHA wt; 1J: 7302114H3200000283 World Bank Loan No.8037-CHA Account No:73021 14 83200000283 ~ ~~ Jllii: z- i'VH.l .!iliiE~JT ~ifi.:tf!F~it11.ll.: ~ft. Prepared by. Yunnan Provincial F111ance Department Currenc): USD Part a Activity for the Period JYlld Item Amount Beginning Balance 1Jil Add t. ttl: 1H1H r :fl· ft 16.000.000.00 Total amoum deposited b) World Bank (l ) l:~ Civil work 0.00 (2) i5i Rft Equipment 0.00 <3> ltfifil.&t# VII 0.00 <5 > ~- J+J ~IU~' 16.000.000.00 2. *'J.Q.~~A 8.110.60 Total interest earned this period iii£ Deduct: 5.355.043.56 Total amount withdrawn ( 1) U£ C1v il work 5.355,0·13 .56 ( 2) i9: {\1- Equipment 0.00 <3 > ~if!J.&±# VII 0.00 Consultants' services and Tratning 2. ;fiJ.G!.t&A!f/( H1 Interest Earnings transfers out 3. ttt-11-tlHrfi:il•l~ Total amount recovered by World Bank 4. 'f-!!l:t./i ~ ti:IOther Banking Charges 0.00 -tf.:;j(~~!ii Ending balance I 0.653.067.04 ~HS·11~-Ci;:i){.B)Jji!;-*:&fl'~tllmt~5t tillrt6*1fli~1U'-~ii~ 0.00 Amount withdrawn but not yet claimed 0.00 Cumulative service charges( if not included in item 5 or 6) ~YDeduct 8.110.60 Interest earned (1f mcluded in Spec1al Account ) 16,000,000.00 Total advanced to Special Account accounted for at 06/30/20 II ~l-f9Hh!.;£1JlHJJJL;;Ji:::& n~fn/iX $:$t ( The notes is an integral part ofthe financial statements) 1• Jffi ) • ~=~ !ili1 ;o 1""1 '1~-t :/Lo ~fi~~~~~~w~~~~~§(~l~~~3%~~~,~~% :k 8037-CHA , ~i .lfi.±* 19.54km, :k ~ U}) i.:T,t ~-* W~riD if-)~:~ tJL 1t T !3t, ~ § .~.t3(1f 131 1GiG, tlfiit 2015 .1f.~.I., Ji~i!t.fiiflf.f~i'~*7PJM, :*. w~~,~~~~.*~#~.~~#~.~~*~a~&~~~**~- 2. !M ~-- fiLi~: ~ #iu ~ lE *N~tlX*~-~~00~~-t!tfi~-l~$~$~~~~~§~~ ~--fiX* & ~· !M j£,5( )f -t )fJ Y*? tR* . 3. i. -~-~it~~ * 3. 1 :rJt § !M .fr t& ( M~~T-* C2000J 13%) *m !M~ «*!f-4R q-r jf5z $ f19J;.-*•*IJ. ~ *~ r~ § f?- it t~J??: ro- 5:t » 3. 3 *-~§%it-t~ K ~ "{x l £1. *U"1t Jb iEJ~Jffi Y!U, ~-~~J*, ~A~~:k~-*~~. * !fl11t~ ~ ;.t 3. 4 # P.R t:p 00 A ~ W. ·ff 2012 .1f- 1 2 JJ 31 E1 y[ *- , ~p US D1=)\. R-, rp 6. 2855 ]G. 4. :ta *A4- f3 ;,;t aJJ 4.1 ~§:ttl} 2o12 1f. 12 fJ 31 E1 ~ ~ :k A R-. fP 31. 57 1G ]G , i. ~~ tt ;t ~.I. ~1 t~ ·!* )\. ~ ~ 15 . o7 1G ]G , 1# Mt ~*'A ~ rr 16. 50 1G iG. 4 . 2~rp*~ 2012 .1f- 12 JJ 31 E1 ~ ~ }a A ~ ffJ 1. 1 7 1G it , ~ tt 00 7f .fi 91K ? ;}t WI J ~ rr 4s51. 3 li 5t , 7t ;k iR q-r Y*? ~ iY1 A ~ ~ 453. 85 li iG, -t ffl ~~? ~ ®!. )\. ~ rp 6695 . 99 li:Jt. - I3 • 4. 3 1fff 1-r :&Hi t&.#x 2 012 ~ 12 fJ 31 B ~ ~ 7J )\. ~ rp 8. 49 1L 7c , -§ tiS- jyf 1t I {!LiX )~ ~ ifi 1. 35 1L 7t 7J 5G , !t-11E ~ Y~ #X A ~ FP 7. 14 1L 7c. 4. 4 Jgi § 2o 12 .1f- 12 ** ** Jb fJ .!§ Jgi § 1,\~ 31 E1 ~ ~ A ~ ijj 1. 74 1L 5t • 4. 5 ;_m § 1~#x 2 0 12 ~ 12 fJ 31 B ~ ~ )tl A ~ rfi 33. 9 0 1Z. :7G , ~ cp : 00 ?I- 1~ ffiX ( t!t 1-r ~ #x > ;\. ~ FP 1. o .*x 5 1L 7c . oo ~ 1~ A ~ FP 32. 85 1z. Jt. 4. 6 s 1t#j: 2 012 ~ 12 }J 31 B ~ ~ JJ A ~ FP 5. 59 1L :7G. Jt, cp Hi 1t I ~1 #k 5. 5 3 1L 7c; 1t 11E & 1t #k 6o 9. 32 7i it , -§ t! 1-\: =W {JtA~ 1 o8. 72 7J it , Kt !~ 1* i.if. ~ :n 28. 9 o 7J :7G , Hi 1t1V .~- 461. 2 2 7c , ;¥t 11E 1 o . 49 7J 5G • 5. -v m 1.tm ~? ·tt~ *~§-tffJ~?~~r:p~•ft~~*m*•~ft, •%~ 730211483200000283, f!S#JJ~:lG. "Vlfl!*.P111k1f#k 1600 li~Jt, 2012 rr !if-1f- -tJJ ~ iY! o ~ it , 1f--* ;t iPi JJ 1o65. 3 7J ~ 7c , ~Jf-@- A ~ 66 95. 99 7i it. ;ft t:f, 2012 ~.X {t~ #X~ §1 Ef-J ±~tJi3:5J- Il¥.jk 5 35. 5 li 1cit, ~fr-@­ A~ fiJ 3365. 91 liit. 1V.~-t&J\. 8110.6 ~iG. - 14- v. Notes to the Financial Statements Notes to the Financial Statements I. Project overview The Loan No. of Kunming Urban Rail Project fmanced by the World Bank is 8037-CHA. The Proj ect consists of the construction of the 19.54 kilometers long Kunming metro Line 3. The total project cost will be RMB 13. 1 billion yuan, which is expected to be completed in 201 5. The World Bank Sections include Liangjiahe Station, Dashuying Station, Jinmasi Station, Taipingcun Station, Hongqiaocun Station, Shizui Depot and Fangmaqiao Depot. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers th e financial statements of the Kunming Urban Rail Project financed by the World B ank, as well as the Special Account set in the Provincial Finance Department. 3. Accounting Policies 3. 1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for the World Bank F inanced Project. 3.2 In accounting practice, the Gregorian calendar year is adopted as lhe fiscal year from January 1 to December 31. 3.3 The accrual basis and the debit/credit double entry bookkeeping method arc adopted. RMB is used as the recording currency of bookkeeping. 3.4 The exchange rate adopted in the financial statements was th e exchange rate on December 31,2012 of the People's Bank of China, which is USDI= RMB6.2855 yuan . .t. Explanation of Subjects 4.1 Total Project expenditures By the end of December 31, 2012, the project expenditure of Construction in progress was RMB3.157 billion yuan, which includes Construction Engineering Investment of RMB1.507 billion yuan, and Deferred Investment of RMB 1.65 billion yuan. - 15- 4.2 Cash and Bank By the end of December 31, 2012, the monetary fund balance was RMB 1. I 7 billion yuan, including China Development Bank Account funds o; RMB45.513 million yuan, China Everbright Bank account funds of RMB4.5385 million yuan, and Special Account to the project funds of RMB66.9599 million yuan. 4.3 Prepaid and Receivable The balance of prepayments and receivables balance on December 3 1, 2012 was RMB849 million yuan. 4.4 Project Capital By the end of December 31,2012, the capital funds of the project were RMB 174 million yuan. 4.5 Project Loan The balance on December 31, 2012 was RMB3.39 billion yuan, including World Bank loans ofRMB105 million yuan, the domestic loans ofRMB3.285 billion yuan. 4.6 Payable By the end of December 31, 2012, ending balance of Accounts Payable was R.MB559 million yuan, including payables to contractors of RMB553 miJlion yuan, other payables ending balance ofRMB6.0932million yuan. 5. S pecial Account The Special Account of this project is set in Kunming Dongfeng East road Branch, CJTJC Bank, with the account number of 730211483200000283, and USD as currency Unit. The first deposit funds was USD 16 million, the beginning balance of 2012 was 0 and ending balance was USD 10.653 mill ion which is equivalent to R.MB66.9599 million yuan. In 2012, civil v. ork cost USD 5.355 million which is equivalent to RMB33.6591 million yuan. Interest gain was USD8ll 0.6 - 16 -