29 JUNZOIB6 T/25Ut9 22 Beijing Municipal Audit Office of the People's Republic of China Audit Report tAk (2016) 3 -W BEIJING AUDIT REPORT (2016) NO.3 Proj ect Name: Beijing Rooftop Solar PV Scale-up(Sunshine Schools) Project Financed by the World Bank & #:8235-CN Loan No. : 8235-CN Project Entity: Beijing Yuanshen Energy-saving Technology Co.Ltd 4dt4 &: 2015 Accounting Year: 2015 目录 ContentS 一、审计师意见．．…，............．……，..............................................．……，．…，二，,1 1 .Auditor&5 Opinion…，二，．…，.....．……，,.，…，.....．……，................................．……3 二、财务报表及财务报表附注．...........................．……，．…，,,．…，,........．……，5 11 .Financial Statemeflts and Notes to the Financial Statemellts.........．……5 （一）资金平衡表，.．…，.，……，…，……，.....．·····，·，····，·······················‘···……5 i,Balance Sheet ...............................................．……，,.．…，二，．…，.．…，．…，…，5 （二）项目进度表．........．……，二，.,．…，．……，．·············，，·····，······，·，·····，·……7 11.Summary of Sources and Uses ofFunds by Project Component,.,.,7 （三）贷款协定执行情况表．…，，……，，…，.，二，二，…，．…，.．…，,．…，,.,.．…，．…，二9 111.Statement oflmplementation ofLoan Agreement..........．……，.,．…，二9 （四）专用账户报表二，,..．……，……，.............................................．……10 iv.Special Account statement ......．……，，二，．…，,,．…，,.........．……，.．…，.．…，.10 （五）财务报表附注二，,,.....．……，.．……，…，．…，...．……，...................．……12 v.Notes to the Flnancial Statements .............．……，二，．……，,,.．…，....．……12 三、审计发现的问题及建议，..．……，...........．……， ...．……，二，.．……，.......．……23 nl.Audit Findings and Recommendations ................．……，…，,,.．…，....．……23 一、审计师意见 审计师意见 北京源深节能技术有限责任公司： 我们审计了世界银行贷款北京市节能减排示范项目20巧年12月 31日的资金平衡表及截至该日同年度的项目进度表、贷款协定执行情 况表和专用账户报表等特定目的财务报表及财务报表附注（第5页至 第22页）。 （一）项目执行单位及北京市财政局对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表、贷款协定执行 情况表是你单位的责任，簖制专用账户报表是北京市财政局的责任， 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的重大错报。 （二）审计责任 我们的责任是在执行审计工作的基础上对财务报表发表审计意 见。我们按照中国国家审计准则和国际审计准则的规定执行了审计工 作，上述准则要求我们遵守审计职业要求，计划和执行审计工作以对 项目财务报表是否不存在重大错报获取合理保证。 为获取有关财务报表金额和披露信息的有关证据，我们实施了必 要的审计程序。我们运用职业判断选择审计程序，这些程序包括对由 于舞弊或错误导致的财务报表重大错报风险的评估。在进行风险评估 时，为了设计恰当的审计程序，我们考虑了与财务报表相关的内部控 制，但目的并非对内部控制的有效性发表意见。审计工作还包括评价 所选用会计政策的恰当性和作出会计估计的合理性，以及评价财务报 表的，慈体列报。 l 我们相信，我们获取的审计证据是适当的、充分的，为发表审计 意见提供了基础。 （三）审计意见 我们认为，第一段所列财务报表在所有重大方面按照中国的会计 准则、会计制度和本项目贷款协定的要求编制，公允反映了世界银行 贷款北京市节能减排示范项目2015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 我们还审查了本期内报送给世界银行的第08号至15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。 ，一＿＿、一’一彝属 中华月毅臀和一国二｛｛几京市声计局 髦叭六年六月扮淤日 飞·、 渭嘎一岁淤 地址：中国北京市丰台区菜户营甲2号 邮政簖码：100054 电话：86一010一63358371 传真：86一010一63358372 2 1. Auditor's Opinion Auditor's Opinion To Beijing Yuanshen Energy-saving Technology Co,Ltd We have audited the special purpose financial statements (from page 5 to page 22) of Beijing Rooftop Solar PV Scale-up(Sunshine Schools) Project Financed by the World Bank, which comprise the Balance Sheet as of December 31, 2015, 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 Beijing Municipal 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 entity, while the preparation of the Special Account Statement is the responsibility of Beijing Municipal Finance Department, which includes: i. Preparing and fair presenting the accompanying financial statements in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement; ii. Designing, implementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Government Auditing Standards of the People's Republic of China and Intemational Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers 3 internal control relevant to the entity's 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 Beijing Rooftop Solar PV Scale-up(Sunshine Schools) Project Financed by the World Bank as of December 31, 2015, 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(s) We also examined the withdrawal application No.08 to No.15 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. Beijing Municipal Audit Office of the People's Republic of China June 17th ,2016 Address: No.2A, Caihuying, Fengtai District, Beijing, China Postcode: 100054 Tel.: 86-010-63358371 Fax: 86-010-63358372 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 (-) 4'FMrt i. Balance Sheet BALANCE SHEET 2015 *- 12 ] 31 F] (As of December 31, 2015) Project Name: Beijing Rooftop Solar PV Scale-up(Sunshine Schools) Project Financed by the World Bank 9Th-4fA: d0fw-44 ~ Prepared by: Beijing Yuanshen Energy-saving Technology Co.Ltd Beijing Municia Finance Office Currency Unit: RMB Yuan M4t M51Zm LineI,* Line AM;V* Application of Fund LN Beginning Balance Ending Balance Sources of Fund Ne Beginning Balance Ending Balance Total Project Expenditures 1 108,306,493.50 187,944,707.38 Total Project 28 412,250,000.00 412,250,000.00 Appropriation Funds Fixed Assets Transferred 2 59,534,237.81 113,534,861.14 Project Capital and Capital 29 Surplus 2. 4#1 J$H3fi AFMPM Construction Expenditures 3 30 to be Disposed Including: Grants Investments Transferred-out Total Project Loan 31 28,231,137.23 77,131,344.96 4. fT N 1. 4M 134 Construction in Progress 5 48,772,255.69 74,409,846.24 Total Project 32 28,231,137.23 77,131,344.96 Investment Loan Investment Loan Receivable 6 Foreign Loan 33 28,231,137.23 77,131,344.96 Including: Account Receivable Including: IDA Appropriation of Investment 8 35 28,231,137.23 77,131,344.96 Loan IBRD Including :Appropriation of 9 Technical 36 - World Bank Investment Loan Cooperation M1 Et10 37 - Equipment Co- Financing MI :t~ 4tt44~9t(2) M krHkiM Including: Equipment Losses 11 Domestic Loan 38 - in Suspense Toa Cah ha Bank 12 348,589,235.37 322,017,743.37 2. Oe Lan 3- I. t1UPT;h R _& )1?1w. Cash in Bank 13 348,589,235.37 322,017,743.37 Appropriation of 40 - Investment Loan Including: Special Account 14 126,187.06 387,608.18 Including: World Bank 41 Loan 2, Rk 15 - 42 - - Cash on Hand Bond Fund M (To be continued) 5 Total Prepaid and Receivable 16 441,156.42 313,012.71 Construction Expenditures 43 to be Offset Including: World Bank Loan 17 44 21,825,489.57 32,535,974.54 Interest Receivable Total Payable Account Receivable 18 121,706.52 18,357.43 Including: World Bank 45 Loan Interest Payable Prepaynments 19 319,449.90 294,655.28 World Bank Loan 46 Commitment Fee Payable 4,W il&20 - A' Z0 f 47 Marketable Securities Other Payabes A, 21 0.00 0.00 48 Total Fixed Assets Appropriation of Fund RA2etained Earnings 49 -4,969,741.51 -11,641,856.04 Less: Accumulated 23 Depreciation IMM 1 &24 0.00 0.00- Fixed Assets, Net fM ? FMR 25- Fixed Assets Pending Disposal 4aLww,q-1 26 Fixed Assets Losses in Suspense . To tal A 01ito u 27 457,336,885.29 510,275,463.46 51 457,336,885.29 510,275,46346 Total Application of Fund Total Sources ofFund (I-) * ik ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I 4 E 2015 4 12 } 31 H (For the period ended December 31, 2015) Project Name: Beijing Rooftop Solar PV Scale-up(Sunshine Schools) Project Financed by the World Bank Prepared by: Beijing Yuanshen Energy-saving Technology Co.Ltd Currency Unit: RMB Yuan Beijing Municipal Finance Office Current Period Cumulative *Iwittm. *MUIXEt 1, ff)i ] .Current 3 H15it iRS Current Period Current Period Period % Life ofPAD Cumulative Cumulative % Budget Actual Completed Actual Completed Total S c of F s i185,878,000,00 48,900,207.73 26.31% 1,407,867,000.00 489,381,344.96 34.76% Total Sources of Funds 177,378,000.00 48,900,207.73 27.57% 754,800,000.00 77,131,344.96 10.22% Intemnational Financing M- I-, A177,378,000.00 48,900,207.73 27.57% 754,800,000.00 77,131,344.96 10.22% IBRD 2. CA4p-,1 Exchange Gain or Loss C Inc 8,500,000.00 0.00 0.00% 653,067,000.00 412,250,000.00 63.13% Counterpart Financing 8,500,000.00 0.00 0.00% 562,500,000.00 397,250,000.00 70.62% The Central supporting fund 90,567,000.00 15,000,000.00 16.56% Municipal funds Domestic borrowing 4.A4lt Other 5. r] ; Own resources 6.1Exft District funds Total Application of Funds (by 282,008,000.00 79,638,213.88 28.24% 1,407,867,000,00 187,944,707.38 13.35% Project Component) Dfrn R - (30,738,006.15) - 0.00 Difference 301,436,637.58 I. ri-IME& - Change in Receivables (128,143.71) 313,012.71 2. E-Y 41-tk Change in Payables (10,710,484.97) (32,535,974.54) 3. 45{ Change in Cash and Bank (26,571 492.00) 322,017,743.37 4. A'i Other 6,672,114.53 11,641,856.04 7 「「打 ！件 爾基 (IN) *)flJV1#* iv. Special Account Statement * M Jk P A A SPECIAL ACCOUNT STATEMENT *,AA-4E 2015 * 12 A 31 H (For the period ended December 31, 2015 Project Name: Beijing Rooftop Solar PV Depository Bank: BANK OF BEIJING CN Scale-up(Sunshine Schools) Project Xt- -: 01090520501420111000610 Financed by the World Bank Account No. : 0 10905205014201110006 10 *&-19- 8235-CN * FV # A': A 5C Loan No. 8235-CN Currency: USD Prepared by: Beijing Municipal Finance Office A U-3 . Part A-Account Activity for the Current Period Amount "I )u Itz 1 20688.01 Beginning Balance t N. 7,200,115.79 Add: 7,200,000.00 Total Amount Deposited this Period by World Bank 07A' M XP43 ) 115.79 Total Interest Earned this Period if Deposited in Spt cjal Account -* 191 T *0 5 LK!N 3r 10 91 - Total Amount Refunded this Period to Cover Ineligible Expenditures mf : 7,161 113.00 Deduct: * M 3 .1 7,161,113.00 Total Amount Withdrawn this Period * V1 * - ] IL & jV-4,f F)" a I h R -f 1w 5 r ffi - Total Service Charges this Period ifnot Included in Above Amount Witlid ;VJ*,t9 59,690.80 1 Ending Balance Ar 79.PTo be continued) I0 Bst: 1PA PiV 'a Part B-Account Reconciliation Amount 1.tiW R -A Amount Advanced by World Bank 11 ,500,000.00 Deduct: 2. ±R-Mf Total Amount Recovered by World Bank 3. TMMfl ffMW V*R Outstanding Amount Advanced to the Special Account at the End of this Period 11,500,000.00 Ending Balance of Special Account 59,690,80 Add: Amount Claimed but not yet Credited at the End of this Period 6,072999.06 Application No. Amount 6. E 5,367,491.77 Amount Withdrawn but not yet Claimed at the End of this Period 7. RN -WEitd-Uli (ft-;I $5 V 6t='r) 0.00- Cumulative Service Charges (If not Included in Item 5 or 6) Deduct: 8. tA&A (Aff MPER) 181.63 Interest Earned (If Included in Special Account) 9. VNIC4191 11,500,000.00 Total Advance to the Special Account Accounted for at the End of this Period 11 （五）财务报表附注 1．项目概况 世界银行贷款北京市节能减排示范项目，项目贷款号为8235一CN，本 项目作为北京市利用世界银行贷款的北京市节能减排示范项目，由北京市 发展改革委分两个项目核准，即：《关于2011年北京市阳光校园金太阳工 程项目核准的批复》京发改〔20川1269号，建设规模为5兆瓦；《关于北 京市阳光校园金太阳整体工程项目核准的批复》京发改〔2012担89号，建 设规模为95兆瓦。本项目拟在北京市大约1000所大、中、小学及相关教 育附属设施以合同能源管理模式完成100兆瓦屋顶太阳能光伏发电用户 侧并籑系统的建设任务。由源深公司（节能服务公司）与各实施学校签订 节能服务合同，源深公司负责项目建设、资金筹措、工程项目组织、运营 管理等全过程项目操作与管理，各实施学校提供光伏系统安装场地。合同 期内，各实施学校按照政府指定的第三方监测平台的发电数据及当期居民 单价，向源深公司结算光伏发电运营费用。 本项目年均发电量为looGWh，项目年CO：减排量为89590吨，减排 50：约770吨，减排NOx约400吨，在其寿命期25年内，减排CO：约224 万吨，减排50：约1.93万吨，减排NOx约I万吨，环境效益显著。通过 项目实施，帮助北京市幼大青少年了解太阳能的地位和作用，宣传太阳能 成果和发展方向，通过“小手拉大手”，唤起学生家庭及社会有关各界对 节能减排的重视。同时以项目实施为契机，推进与相关部门和企业关于实 施光伏发电并籑及计量的政策对话。 本项目分一期5兆瓦和二期95兆瓦两个项目实施。 一期5兆瓦工程已于2013年6月全部竣工，并经过北京鉴衡认证中 心的审核验收。本工程共在北京市10个区、61所学校建设了太阳能光伏 发电系统，装机容量5兆瓦，截至2015年底，涉及装机容量3 .42兆瓦， 43所学校完成了并籑接入流程，实现了自发自用，余电上网。其余学校 并籑接入工作按照供电公司规定的审批流程推进。 一期5兆瓦共分北京市海淀区八一中学试点学校及其它四个批次实 施完成，其中第一、二批合同包采用追溯报账的方式使用世行贷款。 二期95兆瓦第一批（7.5兆瓦5个合同包）招标采购以世行前审方式 12 进行，从2013年9月27日发布招标公告，到2014年1月9日发布最后 一批中标通知书，历时3个多月，合计3家总承包商中标4个合同包，中 标总装机容量6兆瓦，2014年1月完成总承包合同签订工作。 第二批（9兆瓦6个合同包）招标采购以世行后审方式进行，从2014年 3月7日发布招标公告，到2014年4月29日发布中标通知书，历时1个 多月，合计6家总扼包商（或联合体）中标6个合同包，中标总装机容量 9兆瓦， 2014年5月5家总扼包商完成总承包合同签订工作（合同签署涉 及装机容量7.5兆瓦），其中1家中标总承包商因拒绝签订合同，视为违 约，被取消中标资格。 第三批（12兆瓦3个合同包）招标采购以世行后审的方式进行，从 2014年10月8日发布招标公告，到2014年12月12日发布中标通知书， 历时2个多月，合计3家总扼包商（或联合体）中标3个合同包，中标总 装机容量12兆瓦，2014年12月底前完成总承包合同签订工作。 第四批（12兆瓦3个合同包）招标采购以世行后审的方式进行，从 2015年2月10日发布招标公告，到20巧年5月19日发部中标通知书， 历时3个多月，合计3家总扼包商（或联合体）中标3个合同包，中标总 装机容量12兆瓦，2015年5月完成总承包合同签署工作。 截至2015年底二期工程累计完成招标37.5兆瓦，建成1 8.35兆瓦， 175所学校，累计发电304万度。 项目贷款协定于2013年7月10日签订，2013年9月30日生效，关 账日期为2019年12月31日，贷款期限二十五年，其中宽限期五年，还 款期二十年，先征费和宽限期贷款利息本金化。项目计划总投资 l,407,867,000.00元，其中：世界银行贷款120,000,000.00美元（2011年 按照1粎元＝6.29人民币计算汇率，世行贷款共折合人民币754,800,000.00 元），国家财政部批复补贴资金人民币562,500,0 00.00元，企业自筹一市财 政补贴资金人民币90,567, 000.00元。 2．财务报表编制范围 本财务报表的簖制范围为1个国有有限责任公司（北京源深节能技术 有限责任公司）的财务报表及市财政局专用账户报表。 I3 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》 （财际字口000113号）和《世界银行贷款北京市节能减排示范项目财务管 理与会计核算管理办法》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。 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2015年12月31日汇率，即USD卜人民币 6 .4936元。 4．报表科目说明 4.1项目支出 2015年项目支出人民币79,638,2 13.88元，累计支出人民币 187,944,707.38元，占，%．投资计划的13.35％。 4.2货币资金 2015年12月31日货币资金余额为人民币322,017,743.37元，比上年 减少人民币26,571,492,oo元，其中专用账户存款折合人民币387,608.18 元。 4.3预付及应收款 2015年12月31日余额为人民币31 3,012.71元，主要是应收节能服 务费人民币18,357.43元，预付款人民币294,655.28元。 4.4项目拨款 2015年12月31日余额为人民币412,250,0 00.00元，是中央财政和市 财政到位的配套资金。其中：中央财政配套资金到位人民币397,250,000.00 元，市财政配套资金到位人民币巧，000,000.0。元。 l4 项目计划配套资金总额人民币653,067,000.00元，截至2015年12月 31日到位配套人民币412,250,000.00元，占计划的63.13%，其中：中央 财政计划配套资金总额人民币562,500,0 00.00元，累计到位人民币 397,250,000.00元，占计划的70.62%；企业自筹一市财政计划配套资金总 额人民币90,567,000.00元，累计到位人民币15,000,000.00元，占计划的 16.56％。 4.5项目借款 2015年12月31日余额为人民币77,131,344.96元，其中：国际复兴 开发银行贷款额11,878,056.08粎元，折合人民币77,131,344.96元。 截至20 15年12月31日，累计提取世界银行贷款资金11,878,056,05 粎元，占贷款总额的9.90％。其中：先征费累计提款300,0 00.00美元，占 该类计划的100%；货物和非咨询服务费类累计提款n,440,490.83美元， 占该类计划的10.38%；建设期利息类累计提款78,0 56.08美元，占该类计 戈习的0.83％。 4.6应付款 2015年12月31日余额为人民币32,535,9 74.54元，主要是应付工程 款人民币4,673,755.57元，应付服务费人民币30,000.00元，质量保证金 人民币5,530,602.01元，安全保证金人民币1,950,000.00元，履约保证金 人民币11,688,683.00元，专用账户存款利息人民币1,179.43元。 4.7留成收入 2015年12月31日余额为人民币一11,641,856.04元，其中累计利润总 额人民币10,256,828.34元和累计结转递延收益，g．额人民币21,598,684.35 元。 5．专用账户使用情况 本项目专用账户设在北京银行总行营业部，账号为 01090520501420111000610，币种为美元。2015年年初余额20,688.01美 元，本年度世行提款合计7,200,000.00美元，世行报账6,072,999.06美元， 15 利息收入115.79粎元，本年度支付7,161,113,00美元，年末余额59,690.80 粎元。 l6 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview Beijing Rooftop Solar PV Scale-up (Sunshine Schools) Project Financed by the World Bank (Loan No. 8235-CN), as a World Bank loaned demonstration project of energy saving and emission reduction of Beijing Municipality, was approved by Beijing Municipal Development and Reform Commission (BDRQ with the Approval of Beijing Sunshine School Golden Sun Program (BSSGSP) 2011 JING FA GAI [2011] No.1269 (involving a construction size of 5 MW) and the Approval of Beijing Sunshine School Golden Sun Overall Program JING FA GAI [2012] No.289 (involving a construction size of 95 MW). According to the project plan, 100 MW rooftop solar PV electricity grid-connection systems (RPV) will be built in about 1,000 educational facilities including universities and colleges, middle schools, primary schools as well as auxiliary institutions in Beijing under RESCO model. Beijing Yuanshen Energy-saving Technology Co., Ltd. (YS) will sign service contracts with all the facilities concerned. Under the contracts, YS will be responsible for the whole life cycle project management including project construction, fund raising, engineering organization and operation and management, while the schools concerned will provide sites for installation of PV systems. During the contract period, all the schools shall pay YS operational fees for PV power generation based on the data provided by a monitoring platform of a third-party designated by the governinent and the household electricity price of the same period. Annually, the project features 10OGWh of power generation capacity, 89,590 tons of CO, emission reduction, 770 tons of SO, emission reduction and 400 tons of NOx emission reduction. During its 25-year lifecycle, emission of about 2.24 million tons of C02, 19,300 tons of SO, and 10,000 tons of NOx will be reduced, bringing notable environmental benefits. The project helps the children and youngsters in Beijing learn about the role of solar energy, publicizes the benefits and development direction of the solar energy utilization, and arouses attention to energy conservation and emission reduction of the students' families and the whole society in a way of "the children's hands holding the adults' hands". Meanwhile, the project will 17 provide opportunities of advancing policy dialogues among relevant departments and enterprises on solar PV electricity grid-connection and metering. The project is implemented in two phases, Phase I planning a generation capacity of 5MW and Phase II 95 MW. Fully completed by June 2013, the Phase I 5MW project has been reviewed and accepted by China General Certification Center. Solar PV electricity systems were built in 61 schools scattered in 10 districts/counties of Beijing with a total installed capacity of 5MW. By the end of 2015, 3.42 million KWh installed capacity had been involved, and the grid-connection processes for 43 schools were completed, enabling the power generated to be utilized by the schools and surplus power transmitted to the grid. Grid connection processes for other schools are being advanced according to the approval rules as specified by the power supply company. Phase I was implemented in four batches as well as in the Beijing Bayi Middle School. In the first and second batches of contract packages, the World Bank loans were used under the retroactive financing mode. In Phase II 95MW, in the first batch (7.5 MW under 5 contract packages), the bidding was conducted under the World Bank prior review. The process lasted for more than three months, from the publishing of Invitation for Bids on September 27, 2013 to the release of the Contract Award Notice of the final batch on January 9, 2014. A total of three EPC contractors won four contract packages, involving 6 MW of total installed capacity. The signing of the contracts was completed in January 2014. The bidding for the second batch (9 MW under 6 contract packages) was conducted under the World Bank post review, lasting for more than one month, from the publishing of Invitation for Bids on March 7, 2014 to the release of the Contract Award Notice on April 29, 2014. A total of 6 EPC contractors (or joint-ventures) won 6 contract packages, involving 9 MW of total installed capacity. Five contractors signed the contracts by May 2014, involving capacity of 7.5 MW. One of the bid winners rejected to sign the contract and 18 it was disqualified as the rejection was regarded as breaching. The bidding for the third batch (12 MW under 3 contract packages) was conducted under the World Bank post review, lasting for over two months, from the publishing of Invitation for Bids on October 8, 2014 to the release of the Contract Award Notice on December 12, 2014. Three EPC contractors won the three contract packages, involving 12 MW of total installed capacity, and the contracts were signed by the end of 2014. The bidding for the fourth batch (12 MW under 3 contract packages) was conducted under the World Bank post review, lasting for over three months, from the publishing of Invitation for Bids on February 10, 2015 to the release of the Contract Award Notice on May 19, 2015. Three EPC contractors won the three contract packages, involving 12 MW of total installed capacity, and the contracts were signed by May 2015. By the end of 2015, the phase II in total completed bidding of 37.5MW, installation of 18.35 MW in 175 schools and power generation of 3.04 million KWh. The Loan Agreement of the project was signed on July 10, 2013 and came into effect on September 30, 2013, with the date of account closing as December 31, 2019. The loan period is 25 years, including a five-year grace period and a 20-year repayment period. The front-end fees and loan interests in the grace period are transferred into the principal. The project involves a planned total investment of RMB1,407,867,000.00 Yuan , including USD120,000,000.00 of World Bank loans (equivalent to RMB754,800,000.00 Yuan based on the exchange rate of US$1=RMB6.29 in 2011), RMB562,500,000.00 Yuan of subsidy funds approved by the Ministry of Finance and RMB90,567,000.00 Yuan raised by the enterprise and subsidized by the municipal government. 2. Scope of Financial Statements The scope of these financial statements cover the financial statements of one State-owned company limited (YS) and the statements of the special account set at the Beijing Municipal Finance Bureau (BFB). 19 3. Main Accounting Policies 3.1 As for the project accounting, the Accounting Methods for the World Bank Financed Project (Caitizi[2000]No. 13) and the Financial Management and Accounting Management Methods for World Bank Financed Beying Energy Efficiency & Emission Reduction Demonstration Program were followed. 3.2 The accounting year is based on the calendar year, i.e. from January 1 to December 31 every year. 3.3 The accrual-basis principle is followed in the project accounting, with the double entry bookkeeping adopted and RMB as the recording currency. 3.4 The exchange rate announced by the The People's Bank Of China on December 31, 2015 is adopted, i.e. US$1=RMB6.4936. 4. Notes to the Statement Items 4.1 Project Expenditure In 2015, the ending balance of project expenditure was RMB79,638,213.88 Yuan, and the accumulative expenditure was RMB187,944,707.38 Yuan, accounting for 13.35% for the planned total investment. 4.2 Cash and Bank On December 31, 2015, the ending balance was RMB322,017,743.37 Yuan with a decrease of RMB26,571,492.00 Yuan compared with that of the last year. 4.3 Prepaid and Receivables On December 31, 2015, the ending balance was RMB313,012.71 Yuan, including RMB18,357.43 Yuan of energy-saving service fees receivable, and RMB294,655.28 Yuan of prepaid accounts. 20 4.4 Project Appropriations On December 31, 2015, the ending balance of project appropriations is RMIB 412,250,000.00 Yuan, which are the fiscal funds from the central and municipal governments. Specifically, RMB397,250,000.00 Yuan is from the central government and RMB15,000,000.00 Yuan from the municipal government. As planned, the project involves RMB653,067,000.00 Yuan of counterpart funds. By December 31, 2015, RMB412,250,000.00 Yuan was put in place, accounting for 63.13% of the total. Specifically, the central government planned to appropriate RMB562,500,000.00 Yuan, and has put in place RMB 397,250,000.00 Yuan, which comprised 70.62% of the total amount. The planned funds to be raised by the enterprise and appropriated by the municipal government is RMB90,567,000.00 Yuan, and RMB15,000,000.00 Yuan has been put in place, which accounts for 16.56 % of the total. 4.5 Project Loans On December 31, 2015, the ending balance of project loans was RMB 77,131,344.96 Yuan. In particular, the World Bank loan stood at USD 11,878,056.08, which was equivalent to RMB77,131,344.96 Yuan. As of December 31, 2015, accumulative withdrawal of the World Bank loan is USD 11,878,056.08, accounting for 9.90% of the total amount, among which the accumulative withdrawal for the front-end fee is USD 300,000.00, 100% of the planned amount under its category; the accumulative withdrawal for goods and non-consulting services is USD 11,440,490.83, 10.38% of the planned amount under its category; and the accumulative withdrawal for Interest during Construction is USD 78,056.08, 0.83% of the planned amount under its category. 4.6 Payable On December 31, 2015, the balance of accounts payable was RMB 32,535,974.54 Yuan, including RMB4,673,755.57 Yuan of engineering fees payable, RMB30,000.00 Yuan of service fees payable, quality guarantee deposit RMB5,530,602.01 Yuan, safety guarantee deposit RMB1,950,000.00 Yuan, performance bond RMB11,688,683.00 Yuan and RMB1,179.43 Yuan of special account saving interest. 21 4.7 Retained Earnings On December 31, 2015, the ending balance of retained earnings is RMB -11,641,856.04 Yuan. Specifically, the accumulative total profit is RMB 10,256,828.34 Yuan and the accumulative carry-over deferred revenue is RMB21,898,684.38 Yuan. 5. Special Account Income and Expenditure The special account of the project was set up in the Business Department of the Headquarters of the Bank of Beijing, the bank account number as 01090520501420111000610 and the currency as USD. In 2015, the beginning balance was USD 20,688.01, the total withdrawal from the World Bank is USD 7,200,000.00, reimbursement by World Bank is USD 6,072,999.06, the interest income is USD 115.79, the payment of the year was USD 7,161,113.00 and the ending balance was USD 59,690.80. 22