28 JUN 2019 1J *Iäd4th c Audit Service Center of China National Audit Office for Foreign Loan and Assistance Proj ects Audit Report $4 :I (2019) 21 i AUDIT REPORT (2019) NO. 21 Project Name: GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project in China 0 4 5: TF0A3066 Grant No.: TFOA3066 Project Entity: International Environmental Cooperation Center Az+4- 2018 Accounting Year: 2018 目录 ContentS 一、审计师意见．..............................................................................．……，.,.1 1 .Auditor&5 OPinion.......................．……，...............................................．……3 二、财务报表及财务报表附注．，……，二，二，.，……。．,,．……，.,．……，．……，…，.．……5 工1 .Financial St就eme爪5 and Notes to the Financial Stateme爪5..．……，……5 （一）资金平衡表．,．…，.,.,.，…，.,...．……，，……，.,......．……，.，二，..............．……5 1 .Balance Sheet....................．……，...................................................．……5 （二）项目进度表．........................................．……，.......................．……，6 11.5咖rnary of Sources and Uses ofFunds by Project..................．……6 （三）赠款协定执行情况表．............................．……，..．……，.........．……8 i,Statement of ImPlementation of Grant Agreement……，…，,，…，,．……8 （四）专用账户收支表，.............................................．……，...........．……9 iv .Special Account Statement...................．……，...................．……，.．……9 （五）财务报表附注．.......................．……，…，.....．……，.,.．…，.,.,,．…，二，．…10 v.N以es to the Financial Statements...........................．……，,.．……，.．…，. 13 三、审计发现的问题及建议．...．……，...．……，..．……，．…，……，.,,.,.，…，....．……16 nl.Audit Findings叭d Reoommendations.,，二，二，,．……，.......................．……17 一、审计师意见 审计师意见 生态环境部对外合作与交流中心： 我们审计了全球环境基金赠款中国履行《关于汞的水误公约》能 力建设项目2018年12月31日的资金平衡表，以及截至该日同年度 的项目进度表、赠款协定执行情况明细表和专用账户收支表等特定目 的财务报表及财务报表附注（第5页至第巧页）。 （一）项目执行单位对财务报表的责任 簖制上述财务报表是你单位的责任，这种责任包括： 1．按照中国的会计准则、会计制度和本项目赠款协定的要求编 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，馨体列报。 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。 1 （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、会计制度和本项目赠款协定的要求编制，公允反映了全球环境 基金赠款中国履行《关于汞的水误公约》能力建设项目2018年12月 31日的财务状况，以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4、5、6、7号提款申 请书及所附资料。我们认为，这些资料均符合赠款协议的要求，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、审计发现的问题及建议。 。魄势户 审计籲国外贷鑫滨项目它卜日｛口冲必 201，熟多月＿州日厂 半’价 地址：中国北京市海淀区中关村南大街4号 邮政簖码：100086 电话：86一10一62 1 50750 2 L Auditor's Opinion Auditor's Opinion To International Environmental Cooperation Center We have audited the special purpose financial statements (from Page 5 to Page 15) of the GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project in China which comprise the Balance Sheet as of December 31, 2018, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Grant Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements, Project Entity's Responsibility for the Financial Statements The preparation of the financial statements mentioned above is the responsibility of your entity, 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 grant agreement; ii. Designing, implementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatement, whether due to ftaud 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 ftee 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 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 I 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 the GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project in China as of December 31, 2018, 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 grant agreement. Other Matter We also examined the withdrawal applications No. 4, 5, 6, 7 and the attached documents submitted to the World Bank during the period. In our opinion, those documents comply with the grant agreement and can serve as basis for grant 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 Recommendation Audit Service Center of Chin qion Audi ce for Foreign Loan and Assistance Projects June 28, 2019 Address: No. 4 Zhongguancun Soth Avenue aidian District, Beijing, P.R.China Postcode: 100086 Tel.: 86-10-62150750 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 (-) ikl -1-F7 * i. Balance Sheet BALANCE SHEET 2018 - 2 A 31 H (As of December 31, 2018) 354)F : 4 5 X + 4 I&t M (R 4T -R 1 -it)) *t A&I: TF0A3066 Name of the Project: GEF Capacity Strengthening for Implementation of Grant No.: TFOA3066 Minamata Convention on Mercury Project in China Entity Name: International Environmental Cooperation Center Currency Unit: RMB Yuan Application of Fund Beginning Ending Total Sources of Ending Ending Balance Balance Fund Balance Balance Total Project 1,057,350.81 4,186,545.67 . - 800,00000 Expenditures Co-fundmg Received Fixed Assets - Total Grant 5,793,489.69 7,780,399.21 Transferred 2.1f1I M HJR % Construction r. i^tt 288,142.82 8,272.14 Expenditures to be Total Payable Disposed Investments Other Payable Transferred-out 4.?± t @lH Construction in 1,057,350.81 4,186,545.67 Progress Other Fund -, I W1 A -- Equipment Retained Earnings Iclud ng:Equipment Losses in Suspense a C5,024,281.70 4,402,125.68 - Total Cash and Bank CashTiNk 5,024,281.70 4,402,125.68 - - Cash mn Bank A'A Includin 5,024,281.70 4,363,907.18 - - :Special Account 2. 3 Ar& Cash on Hand Total Prepaid and Receivable Total Fixed Assets Total Application of 6,081,632.51 8,588,671.35 Total Sources of 6,081,632.51 8,588,671.35 Fund Fund 5 C:z) * AA ii. Summary of Sources and Uses of Funds by Project * it& (-) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I SAM-E 2018 4 12 A 31 E] (For the Period Ended December 31,2018) H48: 4 3 AIi-Pt T(&f fGA A t AfJ P. A,T : TF0A3066 Name of the Project: GEF Capacity Strengthening for Implementation of Grant No.: TF0A3066 Minamata Convention on Mercury Project in China Entity Name: International Environmental Cooperation Center Currency Unit: RMB Yuan Current Period Cumulative Current Current Cumulative Cumulat Cret Cret period % Life of PAD Cuuaie ie% year Period Actual petd Actual cmete Budget completed complete - 2,786,909.52 - 105,440,000.00 8,580,399.21 8.14% Total Sources of Fund - 1,986,909.52 - 52,720,000.00 7,780,399.21 14.76% International Financing - 1,986,909.52 - 52,720,000.00 7,780,399.21 14.76% IBRD Rpat F- 800,000.00 - 52,720,000.00 800,000.00 1.52% -Counterpart Financing Toa iti o - 3,129,194.86 - 105,440,000.00 4,186,545.67 3.97% Tbal Application of Funds Development of National - 2,832,986.41 - 25,371,500.00 3,060,160.77 12.06% Strategy and Sectoral and Provincial Action Plans Capacity Strengthening for 72,000.00 - 77,103,000.00 885,819.95 1.15%- Mercury Management and Risk Assessment Project Managemen- 224,208.45 - 2,965,500,00 240,564.95 8.1 1%-oX Project Management 6' Difference - -342,285.34 - - 4,393,853.54 - Change in Receivables 279,870.68 - - -8,272.14 - Change in Payables 3.aAgMinCashandBnk- -622,156,02 - 4,402,125.68 - Change in Cash and Bank 4.4Atl Other I 6 1 1 1 1 � rд-� �.`�+ р � тч-l N ы �7 � � � © О � г� � '}� у у� д Q � � � � � � � I�i э`" t" � � � � � �--+ с ""'� • 'а � О � л и i i э i � F-г � U � � � 4�' � � �в+ � "п � {`� �%. � � �������.,.,.,,,,''' т� � � � и �н CF1 � U �� r.�+ С О Q+ � й3�(� � � �'' � ® � U sд � � � � � rn � � ® ,� й � � � Н� L со и и U � ц о эл о �д 4: � ь� А�- О � N � � ��q7 V `вв� . 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Special Account Statement * A k P #1 -t A SPECIAL ACCOUNT STATEMENT *ACK 2018 * 12 ] 31 E (For the period ended December 31, 2018) M)kff (- T - Project Name: GEF Capacity Strengthening for Implementation Depository Bank: China Minsheng Banking of Minamata Convention on Mercury Project in China Cooperation, Beijing Finance Street Branch. TFOA3066 AI-: 697933122 Grant No.. TFOA3 066 Account No: 697 93 3 122 94915,1! R`FP*11: A't Prepared by: International Environmental Coop on Center Currency unit: USD A H (item) :affi (Amount) A%ft: Part A-Account Activity for the period (2018/l/1) Beginning balance (Jan/l/2018) 768,920.71 add: I Y iR 0), Total amount depos ited by World B ank 246,999.16 *ARPMkAlo R 07, "WUnkpIfflft) 37152 Total interest earned this period if deposited in Special Account * M T, -ft 4 3 - Lh M H-1 10 V91 Total amount refunded to cover ineligible expenditures 9 > Deduct: Total amount withdrawn 380,448.92 *M -DM 3 LMffi Total interest transferred out of the Special Account - A 3J A , 9(2018/1213 1) Ending balance(Dec,3 1,2018) 635,841.47 B M,3 : zi A WP iM V Part B-Account Reconciliation 1. 9 Amount advanced by World Bank 800,000-00 MJ, Deduct: 2. AYTW4TE&.0,49 Total amount recovered by World Bank - 3. * M M * --J TO W P -9 & 4 AR ffix 800,000.00 Outstanding amount advanced to the Special Account at Dec/3 112018 (2018/12/31) End balance of Special Account at 635,841.47 Dec,31,2018 M bn add: 5. Amount claimed but not yet credited at Dec,31,2018, EPUAV 4 Application No-7-.i K, Amount 17,380.50 17,380.50 6. 147,358.03 Amount withdrawn but yet claimed 5 R 6 Accumulative service chaF es (if not included in item 5.or 6.) MJN deduct: 8. to A qk /1 ( r+ A 580.00 Interest earned (if included in Special Account) 9. 800,000.00 Total advance to SRecial Account accounted for at Dec,3 1,2018 9 （五）财务报表附注 财务报表附注 1．项目基本情况 项目全称为全球环境基金赠款中国履行《关于汞的水误公约》能 力建设项目。项目赠款协议于2016年11月14日由国际复兴开发银 行（简称世界银行）与中华人民共和国财政部（简称财政部）共同签 籲。根据财政部与原环境保护部签署的赠款执行协议，生态环境部对 外合作与交流中心负责赠款的佼用、管理和监督。该项目目标为：(1) 簖制中国履约国家战略及相关行动计划；(2）提高中国履行《水误公 约》的能力及试点省市实施履约战略的能力。项目主要活动包括：拟 通过开展相关调查、监测和战略制定等活动，制定分行业汞削减淘汰 战略和行动计划，汇总完成中国履约国家战略和行动计划的编制，并 在试点省市开展汞流向报告制度、含汞污染场地风险评估、含汞废物 回收处籮技术可行性研究、大气汞监测能力提高和成果宣传等试点活 动，以提高试点省份和国家的履约能力。项目计划资金总额1600万 粎元（折合人民币10544万元），其中赠款资金800万美元，承诺配 套资金800万粎元。项目关账日为2021年4月30日。 2．会计核算原则 2.1本项目财务报表按照财政部《全球环境基金赠款管理办法》 （财国合〔2017)33号）和《世界银行贷款项目会计核算办法》（财 际字〔200田13号）的要求编制。 2.2本项目确认收支的原则为以实际收到的赠款收入确认为项目 收入，以实际发生的赠款支出确认为项目支出。采用借贷记账法进行 核算。记账本位币为美元。 2.3会计年度采用公历年制，即从公历每年1月1日起至12月 31日止。本期报表会计期问为2018年I月1日至12月31日。 2.4本项目财务报表采用的汇率说明：项目进度表（一）中项目 总计划额折算汇率采用世行项目评估文件中选择的汇率1美元＝人民 l0 币6.59元；其余报表折算采用的年初汇率为2017年12月31日汇率， 即1粎元二人民币6.5342元，年末汇率为2018年12月28日汇率， 即1粎元＝人民币6.8632元。 3．报表编制范围 3.1本项目的专用账户报表由生态环境部对外合作与交流中心编 制。 3.2本期财务报表簖制范围包括：生态环境部对外合作与交流中 心的项目财务报表及专用账户报表。生态环境部对外合作与交流中心 对报表的真实性、完整性负责。 4．专用账户使用情况 本项目专用账户由生态环境部对外合作与交流中心管理，账户设 在民生银行北京金融街支行，账号697933 122，币种为美元。2017年 世界银行拨付首存款（即周转金额度）为800 000.00美元。专用账户 期初余额768 920.71粎元，本期世界银行回补总额246 999.16美元， 本期利息收入370.52粎元，本期支出3 80 448月2美元，本期利息支 出0.00粎元，期末余额635 841.47美元。 5．报表科目说明 5.1项目支出 截至2018年12月31日，本期项目支出合计人民币3 129 194,86 元，累计项目支出人民币4186545.67元。其中：编制国家战略及行 业和省市级履约实施计划本期支出人民币2832986.41元，累计支出 人民币3 060 160.77元；汞管理和风险评估能力建设本期支出人民币 72 000.00元，累计支出人民币885 819.95元；项目管理本期支出人 民币224 208.45元，累计支出人民币240 564,95元。 5.2货币资金 截至2018年12月31日，项目货币资金余额人民币4 402 125.68 元，其中：专用账户存款余额635 841.47美元，折合人民币4 363 907.18 元，生态环境部对外合作与交流中心配套资金银行存款余额人民币 38 218.50元。 ll 5.3拨入赠款 截至2018年12月31日，项目累计收到赠款1 1 33 640.17美元， 折合人民币7780399.21元。 5,4拨入配套资金 截至2018年12月31日，配套资金到位人民800 000.00。其中： 2017年配套资金到位人民币400 000.00元，2018年配套资金到位人 民币400 000.00元。 5.5应付款合计期末余额为人民币8 272.14元，包括生态环境部 对外合作与交流中心垫付未回补资金人民币 80658.00元，生态环境 部对外合作与交流中心本期回补收到的美元金额与人民币支出之间 的差异产生的汇兑收益人民币76 366.52元，专用账户产生的利息为 3 980.66元。 6．其他情况说明 6,1费用可追溯回补期为：2016年7月22日至赠款协议签署日。 6,2本报表配套资金仅反映现金配套部分。 12 v. Notes to the Financial Statements Notes to the Financial Statements 1. Introduction of the Project The project is GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project in China, The Grant Agreement (therefore abbr. GA) was signed by the International Bank for Reconstruction and Development (therefore abbr. VVB ) with the Ministry of Finance, People's Republic of China (therefore abbr. MOF) on November 14, 2016. An implementation agreement was signed between MOF and the former Ministry of Environmental Protection to cause International Environmental Cooperation Center (therefore abbr. IECO) to be responsible for the use, management and supervision of the grant, and handle the procedures related to the grant. The objectives of the project are to develop a national strategy on mercury and related action plans, and to improve China's mercury management capacity and readiness to implement this strategy in the project provinces/cities. The main activities of the project include: to enhance the Convention implementation capacity of pilot provinces and the whole country through investigation, monitoring and strategy development, including sector-specific strategies and action plans and the national strategy and action plan, and activities in the pilot provinces and cities, including implementation of mercury flow reporting system, risk assessment of mercury contaminated sites, feasibility study on management and recycling technologies for mercury-containing waste, atmospheric mercury monitoring capacity building, and result dissemination. The total cost of the project is USD16 000 000 (approximately RMB105 440 000.00 yuan) with USD8 000 000.00 grant from GEF and USD8 000 000.00 of co-financing. The closing date of the project is April 30, 2021. 2. Accounting Principle 2.1 The financial statements are prepared in accordance with the Accounting Principle of the Financial Management Guidelines of Projects Financed by GER (Caiguohe [2017]33) and Accounting Principle of the World Bank Loan Project (CaiJiZi [2000]13) from MOF 2.2 Bookkeeping of the project is in conformity with the principle that the grant in the financial report is the grant which has been received by IECO and the expenditure in the financial report is the expenditure which has been disbursed by IECO. The debit/credit double entry bookkeeping system is applied for bookkeeping purpose. Currency unit for accounting 13 is USD. 2.3 Accounting period is the Gregorian calendar, which is from January 1 to December 31. Financial Statement for the current accounting period is from January 1, 2018 to December 31, 2018. 2.4 The exchange rate defined in the Project Appraisal Document (PAD) (USD 1=FMB 6.59 yuan) is used as the reporting exchange rate in the Summary of Sources and Uses of Funds I when calculating the total project cost (life of PAD), the beginning exchange rate used is the exchange rate as of December 31, 2017 (USD 1=RMB 6.5342 yuan) and the ending exchange rate used is the exchange rate as of December 28, 2018 (USD l=RMB 6.8632 yuan) in other financial statements if mentioned. 3. Scope of the Consolidated Statements 3.1 The Special Account Statement was prepared by IECO. 3.2 Consolidation scope of the financial statement covers the financial statements of IECO and special account statements. IECO is responsible for preparing the financial statements and summarizing financial statements and special account statements. IECO has the responsibility for the authenticity and integrity of its financial statements. 4. Notes to the Statement of Special Account The Special Account of the project was managed by IECO and set up in China Minsheng Banking Corporation, Beijing Finance Street Branch on July 13, 2016. The account number is 697933122, currency unit is USD. The amount advanced (namely turn-over fund) was USD800 000.00. The opening balance was USD768 920.71. The amount deposited by the VB was USD246 999.16. Interest income for current period was USD370.52. Amount withdrawn from the Special Account was USD380 448.92. Interest expense was USDO.00 and the closing balance as of December 31, 2018 was USD635 841.47. S. Notes to the Financial Statement Accounts 5.1 Project Expenditure As of Dec 31, 2018, the current project expenditure is RMB3 129 194.86 yuan, and the accumulated project expenditure is RMB4 186 545.67 yuan. The details are as follows: the current payout for Development of National Strategy and Sectorial and Provincial Action Plans is RMB 2 832 986.41 yuan, and the accumulated payout is RMB3 060 160.77 yuan; the current payout for Capacity Strengthening for Mercury 14 Management and Risk Assessment is RMB72 000.00 yuan, and the accumulated payout is RMB885 819.95 yuan; the current payout for project management is RMB224 208.45yuan, and the accumulated payout is RMB240 564.95yuan. 5.2 Cash and Bank The balance of Cash and Bank account is RMB4 402 125.68 yuan as of December 31, 2018, which is the ending balance of Special Account is USD635 841.47, approximately RMB4 363 907.18 yuan, and balance of IECO's co-financing bank account is RMB38 218.50 yuan. 5.3 Grant As of December 31, 2018, the accumulated grant received is USD 1 133 640.17, approximately RMB7 780 399.21 yuan. 5.4 Co-financing fund The co-financing fund received is RMB800 000.00 yuan, as of December 31, 2018. The details are as follows: the co-financing find of 2017 is RMB400 000.00 yuan, and the co-financing fund of 2018 is RMB 400 000.00 yuan. 5.5 The ending balance of Payables is RMB8 272.14 yuan, which includes that the prepaid cost incurred by IECO is RMB80 658.00 yuan, the exchange rate gain is RMB76 366.52 yuan due to the difference amount between the project expenditure in RMB and the grant received from the WB in USD, and the interest income of Special Account which is RMB 3 980.66 yuan. 6. Other Explanation for the Financial Statements 6.1 Eligible Expenditures on or after July 22, 2016 and prior to the date of the GA (November 14, 2016) can be retrospectively recorded as grant expenditure according to the GA. 6.2 The co-financing fund in this financial statement reflects the cash co-financing fund only. 15