~t11~ .A.~ ~fU 00 P'1 ~Ee 1& rK 'ill H·ff Audit Office of Inner Mongolia Autonomous Region of the People's Republic of China it Audit Report rkJ'rf1 5ir* c2015J 005 % AUDIT REPORT ( 2015 ) No.005 Project Name: Bayannaoer Water Reclamation and Environment Protection Project Financed by the World Bank ~ ;¥x %: 8047-CN Loan No.: 8047- CN Jffi § t)Lfr ft1il. : E.ffii~~rfr)PJ*?t1}-~lffi1'f P[05J Project Entity: Hetao Water Affairs Group Co., Ltd. ofBayannaoer City %- it 1f. ft : 2014 Accounting Year: 2014 ~ Contents * $ it Yijl ~Ji!, . .. . . .. . . .. . . . .. . . .. . . .. . . .. . . .. . .. . . . .. . . . . . . . .. . .. . . .. . . .. . . .. . . I T .Auditor's Opinion ............................................................ 3 ::_ , M4J-l&;&:&.~:f ~ ** flft7i ...... .............. ........... ................. 5 Ir .Financial Statements and Notes to the Financial Statements ............ 5 ( -) ~~+~-*: ................ ............... ............................ .... 5 i.Balance Sheet ........................................ . .............. ............. 5 ( ::_) :0( § :Ittlt* ..................................................................7 ii.Summary of Sources and Uses of Funds by Project Component. ......... 7 c =- )~;fxt11-JttJLii·lt~*· ............................. ........ ............. 11 iii .Statement oflmplemcntation of Loan Agreement .......... .. . . ........ 11 c im ) ~ m9* ? tli* ............... ........... ........ .. ............... .. ....... 12 iv. Special Account Statement... .............................................................. 12 c E.) M1J-#i-*.~ft;i ......................... ................................... 13 v. Notes to the Financial Statements ......................................................... 16 =. , '$' it$::. ~ ~ IPJ ~ :&. JtiX. . ......................... ........................ I 9 Irl. Audit Findings and Recommendations ..... ... ........... ......... ........ 2 1 tltffi$itT~~~fi~~~g~~$~~~~~~~~§ 2014 if. 12 J] 31 EJ if-] *i:-+#ii*&~ ~ i~ EJ l6J J!!J fi;J] if-]~§ Jitlt*' ~-~Jtftfi~~**1~m~P**~~Jt§if-1~***»-M** *lllht ( ~ s -or~~ 1s L -or -~~~M***~if-1*-:t-+#ii* · ~§Jltlt*»-~~~Jtft fi~~*£~~if-1•*· ~~~m~P**£ ~ •*~~~ti~ff EtJ • 11, :lZ #-m-11~ t§ : i. w P.~ ~ oo if-1 % it :101u • %it li1JIt *1.:It iliB 1 ~1Jrffi- § ti*t&;f{, #1!~~~0-JtRBA.; 2. ~it-ftfi*1•¥~~E1Jf]-$~~. ~~~§M***~# ft~f##~~~~~~if-1·*~*· tltffittJ•~£~ftfi$itI~if-J£~~~M***£*$it$ ~- tltffi~~~OOOO*$it$~*100~$it$~~~JtftfiT$it I fj=:, J::i{ $ !JJfff >Jt tit ii'J Jl 9" $it .!!7Ut ~>It , it ~rj *1 tl!Ai '$'it I ff: ~~~WM***£~~#ft•*··~-~~~fil . * * 59 ~ • 11" ti* t&;f{ 1:-~ *11ll rt 1-t .~- if-] ;ff iiE ti ' tit 1r'J~ ~ 1 ~~~$'it~ff . tltffi~m~~~~~~·it~ff. :!Z~~ff~M ~~f##~~~~~ttJM***•*~·~~~W~. ~Jltfi~ ~W~~, 591~it~~if-1$it~ff, tlt ffi ~~T~M***~* ttJ f]-$~1\J1J. 1~ §EB#~~ :xt ~ -$~1iJrJ ttJ tJ°~'fi£-* $~. $it I it ~~MW~M~mf?tt~-if-J~~tt*1~ilif?it~itttJ~~tt. ~ J)_ W1fl' M *t& *ttJ ,~, 1*7Jt&. 1 ~m~~, ~m~•~•ttfil~~~~~. ~~~. ~k** it ;t- Ji!A~ 1# 1 £ tllL ~m~~. • - mm~M***ftm~•*~w~~cpoo~~ it$~. ~it~~~*~§~-~~~~#-~. ~ft&~I~~ ttHr~ #J:. Ei ff if~$ 7J<..tf;l.Jttf- ,g..)~ JIJ:ffe § 2014 if- 12 JJ 31 s ~ Jllt % ~* ~& tt i: 1Y< s IEfJ WJ rSJ 8"J !X!t 3Htx . r:ffl § :fUi to -t JfJ 9* P ~~ :t ·tt ~ 0 ~ffi$*I*M~~§~IKM~fim*~~tt~• 8 %i:. 9 %••~~~&mmt# . ~m~~. ~®f#~~*-~•~~~ ~#. PJ~),1t~ rfli~·-~ttdi . *•it~!~~~. #IEfJ~~$it*%~~~~r:ffl~~ : M% **&!Xlt***m~~$itk~~Fl•&~U . ±i!!J.tl:: cp 00 ~ ~-t § }~ IK uf-~l.H~rfi *'.!f: *fir 116 % di~ ifj:. :Vi!J : 01 0020 ~ii§- : 86-04 71-6634918 1~. : 86-04 71-663465] 2 I .Auditor's Opinion Auditor's Opinion To the Leading Group Office of World Bank Financed Bayannaoer Water Reclamation and Environment Protection Project We have audited the special purpose financial statements (from page 5 to page 18) of the World Bank Financed Inner Mongolia Bayannaoer Water Reclamation and Environment Protection Project, which comprise the Balance Sheet as of December 31, 2014, 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 period then ended, and Notes to the Financial Statements. Project Entity and the Finance Department of Inner Mongolia Autonomous Region's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and U ses of Funds by Project Component, 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 the Finance Department of Inner Mongolia Autonomous Region, 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 due to fraud or en-or. 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 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 due to fraud or error. In making those risk assessments, the auditor considers internal 3 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 identi tied in the first paragraph present fairly, in all material respects, the financial position of Bayannaoer Water Reclamation and Environment Protection Project financed by the World Bank as of December 31, 2014, its financial receipts and disbursements, the project implementation and the receipts and disbursements of special account for the period 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 from No.8 to No.9 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 anJ Notes to the Financial Statements, Audit Findings and Recommendations. Audit Office Of Inner Mongolia Auton0Jll-OUS Region, China f ~e24, 2015 '--..,, Address: No.116, East Ring of University Avenue Huhhot, Inner Mongolia, China Post Code: 0 I 0020 Telephone: 86- 04 71-6634918 Fax: 86-0471-6634651 The English translation is for the convenience of report users. Please take the Chinese audit report as the only official version. gij- ~il*lU!t ~t&* llfhi II. Financial Statements and Notes to the Financial Statements (-)~~1¥-~* i. Balance S heet BALANCE SllEET 20 14 4- 12 J J 3 1 f I (i\s of December 3 1. 20 14) ~. r; t .fl:: ft 11'1~ <· ·~ 'H'.." .~ ~: "' +: .J.JJI •J! ~ !.;J'J' ·li ~ Project 'lame: Ba)annaocr \\ ah:r Reclamation and Lm ironmt!nt Protcc.:1ion Project Hnanccd b) the World It.ml.. Pn.:parcd b): I ktao \\ atl.!r /\llbirs C1roup Co.. ! 1d.of Ba,annaocr Cit) Currcnc) l nit: RM B Yuan l mi.: Beginning lme llcg.i11mng, Aprh ca11on of I und ,,, Balance I ndmg IJalancc \m1rce:; of Fund Balance f ndmg Ralancc . ' ,~•I IOl;il 28 42,l~OJ~;\1t.po'led .11 267.291.71146 339.689.72.J 65 lrull'rl"l!o,;dlu.i ,.,11r1f" .124.j7 I.459 .J2 477.0%538.13 32 210.\07.83375 257.976.991 14 JJ 111.107.833 75 I <8.976.991 14 :t••' ~~It Including Wocld B:rnl.. 34 l !l\:]U\)11•!!1().\ ln\ e\1m ~n 1 I1},1111 Rt.:~1 \aNf' 35 111.107.8.1.175 l'••I \~~>uni lr.di...Ju~ \\rnlllfb'li.l.o;lJ'l ;, i:+IP,f..ft ' ""' ('"\.hvn l taltd 15 BonJ f und 42 .. .... Ra..:,.1bl\' ........ ;i;~~lltl: A~ 1t ..... 16 lX ..l.JJ3K8_9J JO.Ql)(t.:!1JJ Aa n~ 17 44 73,1 28.5760.l 9141 8.8-15 78 Toi.Ill l'~'ahl t loan l nlcr<">C Re1:C1\.tt:-l\° ~t:;'t:'j 2.:..•.·1 • ,- ~ 1 ·· ~1w- n 1-.:.:.. -"I-~ \\,»"Id ...... t.o.n 18 Including \\l)rldBlnl lwn ll'let"e<.1 45 O:'lml'lllmtnltftRfl.X"ablt Pn.ablc- l::flp:.'i';: tt t-,ill l{ f 'tt ~ ~ii.:lt' f \.\'1,.J..tl'l•nLl.,~·1'i~ 1 ct- 19 \\or~t R.u1l. I tlln('ommnmcnt f('(' 16 re\: Rl,~'' 'db ;,,. Pa\·Jl•k I" ;ll:~·? f!> J~' • fj f" 1lf. 20 \\'oc\Jf\.tri.l11M\~Ktl-~ 17 \larl.t1.1hlt"~c-:unl!C"\. l'aqhk · · ~~ 1 ,, '" J{ lcu/f 1\cd .\~u·t' 21 42.87:' 00 17 ..145 ()() A:~t:'I\-' Othtr Pa~.1hlo 48 l(i\_f,•ni. £t h\f'd \\~\.{('IM 22 50.\)()0 00 5(),fXlO IJ(J "~ "· ' \ J'l(lropn:i.11011 al hmJ 19 ... ti'< ; ' IK< . - ~ ~ }, 2J 7.125 00 12.M:'OO <:o .\(;~11mubtoi l')cp«t111tlft R(1a1ncd l ..untn;\ ftl~i... i • n 24 42.875 00 .17..145 ()() l-l\td 1\\«-t\..... tt 11:~\. ·~ .. t 1 ~l\l>d •\\"(1) l'cndtn)I; 25 '"""''Qt fll •Ur~~~ t", h\cd l°',_.-~ 26 :0.U"f)('ll\C' '"'" '" t.troil1 t •· ~ t "ll~l 27 .182570.642.49 539J)28.Q24.43 'I 382570.642.19 519.02X.924.43 T01.•l ·\ppltl,llt1"1ofF11nd Tol~ l \1iu1 ..:~ 11l~ u11d 6 ii. Summary of Sources and Uses of Funds by Project Component :r.m !§ :Tif ft *( - ) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I i\.M!I'~ '£ 20 14 ljc 12 fl 31 fl (For the period ended December 31, 20 14) 'if! l'l .t ~: it Wfil ii~tx E'. l~ iii' G •fl it.hH. <.'um:nt Period Current Cumulati\C tumulathc Period 0 o l.ife of PAD Budget P..:rio')I l I 29 86•. International Financing 1. •mr 11::1+ fl :!< iJUi 11.869. l 'ii J9 1 'i8.97fr"N1 1 ! 11 11{1) ~c t.->Jt t 88.298 S'i I 80 9:" 67°0 562.220.000 00 'ifl9~. Counterpart f'inam:ing I. "-~•kl't~l.'f Counterpart Financing from Localcm cmmcnt 2.l!J c1.!J;~ Financial Loan 99.000.000 00 9Q.0011 000 00 3. :: fl ti<. it Project n~-i:1.ooooo tiJ . .,.~0.000 00 Appropriation Founds 4.Ji': '--' !'.11; sdt:rniscd lilnd' 10000". 356.899.6-15 ()() 81.712.~.11 "I '!2 90'. i1- il-:£1f. ft-if ( J'il"t'J i!cY.) Iota! Application orFund-. (b't Proit:c1 Comoorn:nt) l.C l -Wll l',!iH~~lfm1cc1 Component ('urrcnt ;~ l'1 ~- it\:I •) !Curn:nt Period Curren! Cumulati\C Cumulau'e PcrioJ o 0 Li fr of PAD Rudgr:t Paiod Actual Actual 0 oComplctt:d Completed 6.C2-(i(.) 'j IHof: io r (ianqimaodu WastC\\ata * ?{''" 10.l-IR 'i40 'ii lf>. l 18516'il IOOOOoo 129.092.00() 00 9-l.168.97S f1\ 7'Yl)'i 0 o I rcutmcnt Plant 7C2-W(.) 'H,~H.~ 5tot: J'jl r \\ ulateqianqi 3::!.QQKXSO ~ l:?.qq8.R81l _;6 1001.0-. 140.80:'1.'\00 00 <)~)'>I . "'! I,,, 67 I l'o \\ a ...tc,. . atcr l'reatmcm Plant ~ - ('\.i\W l/,'f'H;A_ . ;'/I~. ili.JtzJti'l CJ-1\1' Ji;i;> 1.-ilt ti'. ;~ i'> 'fO!'; ~11 ,-, !li~.i »'. :~ Con-..1ruction of \nil'kial J?\J.'ilO.oouno noo 000'. \\ otland of Wuliangsu I akc Constniction of Dcmons1rn11on Station for\\ uliangsu La~c l'\on-ooinl Pollution Control 9. CJ-WI ~LU; ilt V ~ {~ 1'.' if1 )ii) :)';; ;)< 4)- ~ 0J lf [IR_ 0 ii) t'fifi'f'll : A~rfi;t Prepared by: Hetao Water Affairs Group Co.. 1.td. or Bayannaoer Cit} Currcnc2 l 'nit: Rf\lll Yuan ' )tr~ 1... tl~ Project bpcnditurc lqf'Jf){< ~;. htlli •",,.,_-_ft-fr 1\ssets T ransfr:rred li>Ui~ M'~ll]JC: fol x I ~~~"'b'f Project Componcm Cumulali\·c ,\mount 11 . , ~rr· .,. ,_, *"" Current I t ->!~ t~ '"' Intangible ·{ $~~t .~ Deterred \\ orl in Progr~'' ,t <-unsm1ction L'p.:nditure' lo ln,cstmt:nh T ransferred-oul ll\cd '\"Cl he Di,po'><:d \>set Asset AS,Cl I 1tin5 ~iliJµJ_/HK-'t !l ~ '.,'t ~IW Rcdaimc;'<.'!\ ;fU- ;t 4di: r I i:.ffh'if i~J~ wr- Work in 1 E"penditures to ln ... cstmcnb Amount Current lnlangibk Dc1crrcc1 Progress TrnnstCrrcd-out Fi\.ec.l As~~• h< Disposed Asset Asset Asset 5. "1ffrHfn @11J_1-foJ il '"'l'fol,li l i~f.dJ: J_'PJ_fj 62.424.294.. 81 62,-124,29-1,.X I \Vasl~w:uer l"reatrn enl J>rojecl in ehou4i Industrial /.one(l luhe ·1O\\ll) Wula1 6. -U-cit~tlf>Jr~J.J.l[{ ( ft~i.L{Ji l i".l;K#: lJI' & ~ lfl J_fi Wastewater Trcatmcnl and 103.645.964.73 103.6-15,964.73 Rescue Project in Ganqirnaodu lnd11strial Zone(Dclingshan Town) 7. ~H,i't'rt\tr.~Jr.u_if;JIK ( 7\';1$1!1. l 5".l~J.t I! & § ll': J_ i£ Wastewater Trealmenl 105,071.223.63 105,071.223.63 Project in Wulatcqianqi Industrial Zonc(Xianfcng Town) 8. <'.!; !!'.:t~i1¥iif [i Mft..r.< ll! J.fl Iyt ~ Grid Canals Project of Wuliangsu Lake 69.J 12.297. 73 69,3 12,297.73 ~~~J~1~~-*A iill ~ Ift* ll -"'1~lil;-liili'fi' i~~Jl'ij;j,J-;'U, jfi(-!jij§ Artificial Wetland Proj ect of Wuliangsu 9.884.930.36 9,88-1.930.36 Lake l'romotion of 'lo-point Pollution Control l'rnject of Wuliangsu Lake .f?ii- Total 477.096.538.13 477.096,538. 13 10 (~ ) ~:«.th- Jt ~fr ·tt {JL* iii. Statement of Implementation of Loan Agreement ~~th-Jt~ff'ti~* STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT * ,~hl. ?i 2014 {f- l ~ }] 3 I 0 (For the period ended December 3 L 2014 ) ;:: ~~ /.-; 11- "t IJi! .cu '-~ 1.1<_ -5h tr.1 y.. \/; ;,-. -.:l-· ,i.,. l r t~- ~·~- ,4.-~L, JHI J:x: r-1 1-:J, 1 1.:1 -'(1 •'f!J< \!'. JI~ t:)X 1 J .JJl ;M_ w ['? l-1- 1. ' ijJ l,J\...vJ'})(, ··lJ' i-:I It.I 3' ~( i:;J Project Name: Bayannaoer Water Reclamation and Environment Protection Project Financed by the World Bank ~ tit-'*- ~iL : E. il ;~ ;:-:_ Ip ;51 ~ 7_/( -11- ~ 1: F~ It~ J] it: ~ rr 1f1- i!l:: A ~ rtJ ;I, Prenared bv: Hetao Water Affairs Groun Co., Ltd. Bavannaoer C' - or ~~ ;'t;. 1;!- +!.: {t ~/~ *-·~ JltUx~ Wdt .fe '1t t7. ~ ~1] l.oan Amount Current-period \\'ilhdr! l t:-..\ 1;-u~tJ &rn) 7,755.146.29 2.09 1.31 Total Interest Earned this Period if Deposited in Special Account .-JJ. $- .,.... ~ )Fj ' ·nr ~ -~~ rv .:i:.... ~ ·;:;r ..J., k!: A :rr ~ t2S. If'µ .JJ=i. J0J /J\. ..::::.. ,~... _..,,,, 3 JPJ '-r.; J'.fi 0 El 11-l- Jill i::i IPJ ~J y, t::r ~a~~E#~~~~~·~*ffft~~I . %~*£~±JJ\W ~ . *A~li*~~i•-tOO~~,·$~~W~ . ~*~~IR­ g*%~ . ~~g*£~~If~ffitf'~£El~orffl El ~a#~f 2011 if 7 A 29 El ~iT. 201I if 10 fl 27 81.~:k. . tffiit 201 7 if 12 fl * 31 s ~ 1tJ Jffl Er it ~1Le, t:9:: :'.rff 1.094,000,000.00 Jt , A ? t 1 0 Jm tlt 11 ~ a 80,000,000.00 ~ it , :JJT% A~ rr s32,ooo,ooo.oo it ctJi:Jffl EJ :'.rff-t- $ i~ :j'[l % trt ~ :/[ $ I :6.6541 ) , 00 * fl ifilG ~ -i- 562,000,000.00 it o 2. ~ %-- :JfL~:tffii 1l>utit ~ *-M***~-~~;~gE#~~~~*~* ·ffi ~~0~ ~~%-~*&§~IRM~rr~m~?~*o 3. i.~%1tif~* 3.1 *-~El ~t ~:JR *:t~ ?.~ Mifk .g~ «tit JR-* fT)} ~ ;gy El %it~ j1: 1J, *)) O!t ~,f; '.f'. c 2000 ) I 3 % ) ~ ~ ~-jUAiiJ1!iU o 3.2 %1t~ ~ .1f&-*m0JJJ.1f-1M , ~P0J7J~ .1f 1 fl l El ~ 1 2 fl 3 1 El 0 3 .3 *JW %H ~ J¥: t;J, "ifX.11" £ 1- ~1J,, fpJJ 1r. ft1K ~ Yl J, EJ 1 *m1t)} ~ J:t.1c~* g ic!* . t;z A~ rr JJ icffeK:*- 1ft. rr o 13 rp 6.119 :it 0 4. :JIL~: #El ik SA 4.1 ~ § .:t tb 20 l 4 5¥- !ff! § .:t tr; A ~ rf5 152,525,078.81 JG , lit .:t lli A~ rf5 477,096,538.13 :it ' 6,~-~1tf--it~1J ¥1 43.59%0 4.2 ~rjJ ~:t 2014 if- 12 fl 31 B ~-rp ~:t~.tfli:n A~ rfJ 30,898,776.56 :it , bt m n: !tllw~ 7Jp A~ 15 11 ,285,857.32 7t , Jt 9=1-t 9*? ~*-"iY! A~ r=p n 23,566,388.32 :it 0 4.3 fm 1t RB Y~~ 2014 5f. 12 fl 31 Bffft1tRSY1z;fx*-"~nA~IP 30,996,264.74 7t , ±~~~tt#~~~*R~i*~~T~I~ , ~tt#~- - ~tt# ~-~i*I~.~~*~~~*~I~R~-%~1.~li~*AI 5~ ti!!. I~ fjfi 1t I ff_ ;f}:. o 4.4 ~ § tt~l. n 2014 if. 12 fl 31 8 ~ § ~ #,t %W9f A~ rf5 105,920,355.00 it , ;J.t t!=19=1*& §yf'i'iz:§1J1ft¥Jl'Bc~~:t 88,600,000.00 it , wJM"lfzPJc**-t 5,970,ooo.oo :it , E. iffe ~~"$'*fr %J 6,480,000.00 :it , 15 •JM" iF.k. %J 4,870,355.00 :it 0 2014 5f.:r§i:EJit~1Jf;iC.1}~:t,~•.t~A~TIS 92,298,854.80 .it , iu1ft WC. *~:t A~ rfJ 88,298,854.80 it , 6 ,~-if ~1J tfJ 95.67%, Jt 9=1 2014 if.Lt 9=1Aif1%'lI5PJ~~s1.~lf~1~Hf'lJi EJ ~~ 25,300,000.00 Jt . w. tt:tu 1ftA~rfJ 23,300,000.00 j[; , 15--H~1JE8 92.09%: 2014 if.c:f A£;tt9:1* 5~~1B'~!I.f.¥.tt1t 42,000,000.00 j[ , l itf%1A~ IP 40,000,000 j(;, 6it~1JEfJ 95.24%: "$'0JIF!zt~1t.JJYEJ'f~f 470,000.00 ;?t , e,±f§rfV 4.5 10: § 1~~ 2014 Jf 12 JJ 3 1 BJ0:§11-tf;fl.*-"tYinA~rf5 339,689,723.65it , ,It n t:f 00~11'j{_~:7f£:*1T )t ;f,k Wflr A Ri rfJ 158,976,991.14 it ; 00 i7g 1~ ;f,t 14 99,000,000.00 j(; 0 ~ .tl:Ju 20 14 .ff. 12 f1 3 t El , ~ it t;l JR it!: W. llUt ~ #J:. 'df -t- A ~ fJ5 158,976,991.14 ~ . dJ:tLfJ:,~,~ff!~ 29.86%, ;ltc:f : t;llfX.It¥.~'tf-t- 132,566,360.67 j(; , c5~~1t~rj~ 39.75%, ~l[X_;g_ -i,iijf 2,844,242. 15 x, r5~~1t;;1t1Jif-J 24.46%; ~1tOOf11%;f,)zA~rr 99,ooo,ooo.oo x. dJ I~' 1,f;;1t1J ~ 100.00%0 4.6 EL ~t #J:. 2014 .ff. 12 JJ 31 aB:1t.fxfe-tfftnA~rr 93,418,845.78 :it . i.~ ~~±~•&~+~~~~r,~+~~~r&~~-~~~~-~ rn !9t1*-t-~7ro 5. -t m,mte? ~ m·tw jfl ;;f\. JJ:! El 1i" JfJ li!K? -& {£ -Yf:_, fc lfl. ft, WK:% 7J 50121488000000949, $ {if Jg~ j(; 0 1j- F.J ,mtC p 1t )j: 1f #J:. 5,000,000.00 ~ j[ 2014 .ff. 1¥-:fJJ fe-i.fff 0 2,11 o,831.14 ~x, ,i\. .1f- Jt ~~ ~ f ~ 1B 30.00 ~:it , .f1L~, Y5cA 2,091.31 ~j(; ' ~;f,)z 7,755,146.29 ~:7[, ' ~ 1t 6,616,692.39 ~ j(; ' if-*fe-iYf 3,851, 346.35 ~j(;o 15 v. Notes to the Financial Statements Notes to the Financial Statements 1.Project Overview Bayannaoer Water Reclamation and Environment Protection Project (Ln.8047-CN) is aimed to the treatment of the water pollution in drains of Inner Mongolia Hetao Irrigation Area as well as that in Wuliangsu Lake, and prevents the water ecological environment of Yellow River from pollution. The project also aimed to establish a complete early warning system of water quality to protect the water ecological environment of Wulangsu Lake, Inner Mongolia Hetao Irrigation Area and Yellow River effectively. Besides, the implementation of this project could also optimize the water resources and exploit the reclaimed wate r resources of Bayannaoer rationally, as well as promote international and regional economic cooperation through the deep processing of the mineral resources (such as coal and copper) of Mongolia, to achieve the goal of win-win situation such as economic development and environmental protection. The Project Agreement was signed on July 29, 201 I, came into force on October 27, 201 1, and it will be completed on December 31, 2017. The total investment of the proj ect is RMBl.094 billion yuan, of which USD80 million is World Bank Loan, which is equal to R MB532 mi llion yuan according to the exchange rate of the Fund Application Report ( 1:6.654 1), and the other RMB562 million yuan is domestic counterpart funds. 2.Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements prepared by the project office of Hctao Water Affairs Group Co., Ltd. of Bayannaoer City, and the Special Account Statement prepared by Inner Mongolia Finance Depa1tment. 3.Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for World Bank F inanced Project (Caijizi[2000] No.13 ). 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January l to December 3 l. 3.3 The accrual basis and the debit/credit double entry bookkeeping method are adopted. RMB is used as the recording currency of 16 bookkeeping. 3 .4 The exchange rate adopted in the financial statements was the exchange rate on December 3 I, 2014 of the People's Bank of China, which is USDl = RMB6. l 19 yuan. 4.lllustration of Statement Ite ms 4.1 Project Expenditure The project expenditure on year 20 14 was RMB 152,525,078.81 yuan, accumulated outlay of RMB477,096,538.13 yuan, which was 43.59% of the total investment. 4.2 Monetary Capital The balance of monetary capital was RMB30,898,776.56 yuan until December 31, 2014, RMBll ,285,857.32 yuan less than last year, of which the outstanding of deposits of the Specified Account was RMB23,566,388,32 yuan. 4.3 Advance Payment and Receivables Until December 31, 20 14, the balance was RMB30,996,264. 74 yuan, mainly prepaid project payment, consists of main work of the Wulateqianqi Wastewater Treatment P lant, Wulatehouqi Wastewater Treatment Plant, Distribution Networks for Wulateqianqi and Wulatehouqi, Wulateqianqi reclaimed water project, Wulatehouqi reclaimed water project, and the Grid Channel Project of Wuliangsu lake. 4.4 Project Appropriation Founds Un ti 1 December 31, 20 14, the balance of Project Appropriation Funds was RMB 105,920,355.00 yuan, of which the counterpart fund from national government and the Inner Mongolia Autonomous Region was RMB88,600,000.00 yuan, the counterpait fund from the Municipal Government was RMH5,970,000.00 yuan, the counterpart fund from the Municipal Water Affairs Bureau was RMB6,480,000.00 yuan, the counterpart fund from the Finance Bureau of Wulatehouqi was RMB 4,870,355.00 yuan. The anticipated total counterpart funds were RMB92,298,854.80 yuan. Among which there is RMB88,298,854.80 yuan was up and running, equal to 95.67% of the total counterpart funds, Of which including the central environmental protection funds RMB25,300,000.00 yuan for the national Rivers and lakes ecological environment protection project on 2014, among which there is RMB23,300,000.00 yuan was up and running, equal to 92.09% of the plan; RMB42,000,000.00 yuan Special funds for the central Infrastructure investment in pollution control engineering on 17 2014 (accumulated Appropriation Funds RMB40,000,000.00 yuan, equal to 95.24% of the plan), RMB470,000.00 yuan project management fees from the municipal financial department. 4.5 Project Loan Until December 31, 2014, the balance was RMB339,689,723.65 yuan, that consists of RMB158,976,991.14 yuan of IBRD Loan and RMB99,000,000.00 yuan of Domestic Loan. Until December 31, 2014, accumulated withdraw funds from World Bank Loan was RMB 158,976,991.14 yuan equal to 29.86% of the total loan amount. Among which there was RMB 132,566,360.67 yuan used for engineering, equal to 39.75% of plan of such type, and RMB2,844,242.15 yuan for consulting service, equal to 24.46% of plan of such type, Accumulated domestic loan is RMB99,000,000.00 yuan, it was 100.00% of the general plan. 4.6 Account Payable Until December 31, 2014, the balance is RMB93,418,845.78 yuan, is mainly consists of self-raised funds and the retained quality assurance fund of the three wastewater treatment plants, the two reclaimed plants and the Canalization of Wuliangsu Lake. 5. Service Conditions of the Specified Account The special account of the project is located in the China Everbright Bank, with account number of 50121488000000949, cmTency is USO. The first deposit of the Special Account was USD5,000,000.00. At the beginning of year 2014, the balance was USD2,710,831.14, the withdraw funds was USD7,755,146.29, the payment was USD6,616,692.39. Among which there were USD30.00 service fee and USD2,091.31 interest. Until December 31, 2014, the balance was USD3,85 l, 346.35. 18