Audit Service Center of China National Audit Office for Foreign Loan and Assistance Projects Audit Report WTh+4K (2019) 22 r AUDIT REPORT (2019) NO. 22 Project Name: Reduction And Phase-out of PFOS in Priority Sectors Project Granted by GEF -V7 : TFA4337 Grant No.: TFA4337 Project Entity: International Environmental Cooperation Center #k itA A : 2017 * 6 9 6 H 12018 4 12 A 31 H Accounting Period: June 6, 2017 - December 31, 2018 目录 ContentS 一、审计师意见二，........................................................．……，................．……l 1 .Auditor&sOPinion.．……，．……，...........................................................．……3 二、财务报表及财务报表附注．.........................................................．……5 11,Financial Statemeflts and Notes to the Financial Statemellts.，二，.,..．……5 （一）资金平衡表．...........．……，,..................................．……，．…r....．……5 1 .Balance Sheet......．……，二，.......．……，．……，．…，.,.........．……，...............．……5 （二）项目进度表…，．……，…，,.,,，…，.．…，.,．…，,.,,,,，二，…，,,．…，,.,，二，二，..．……，.6 11.Summary of Sources and Uses ofFunds by Project Component.．…6 （三）赠款协定执行情况表．．…，二，.,．…，,.．……，,.,.，……，，…，…，二，二，．……，二8 111.Statement oflmplementation ofGrantAgreement...................．……8 （四）专用账户收支表．...........................．……，.,.，二，.，二，.,．…，…，.,,..．……，9 i从Special Accoullt Statement…，,，…，．……，,,,,.,，二，.,.,,.,.,.,,.,，二，.,........．……9 （五）财务报表附注．.................................................．……，，二，二，……，,.10 v.NOteS to the Financial Statement......．……，...........．……r……，二，，二，,,．…13 三、审计发现的问题及建议．....................................................．……，．…，.16 nl.Audit Findings and Recommendations.,,，二，……，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全氟辛基磺酸及其全氟辛基磺酞氟 优先行业削减与淘汰项目2018年12月31日的资金平衡表，以及截至该日 同期间的项目进度表、赠款协定执行情况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15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 1 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簖制，公允反映了全球环境基金赠款中 国全氟辛基磺酸及其全氟辛基磺酞氟优先行业削减与淘汰项目2018年12 月31日的财务状况，以及截至该日同期间的财务收支、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1至4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。 ’计二外·抓扮 20’夕锣么“日沙 簇 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：86一10一62150750 2 I. Auditor's Opinion Auditor's Opinion To International Environmental Cooperation Center We have audited the special purpose financial statements (from Page 5 to Page15) of Reduction And Phase-out of PFOS in Priority Sectors Project Granted by GEF, 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 period 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 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 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 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 3 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 Reduction And Phase-out of PFOS in Priority Sectors Project Granted by GEF as of December 31, 2018, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the special account for the period 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 application No.1 to No.4 and the attached documents submitted to the World Bank during the period. In our opinion, those documents comply with the project 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 Recommendations. Audit Service Center of China Natiod4i difO c fiio oeign Loan and Assistance Projects June 28, 2019 Address: No. 4 Zhongguancun South Aven a, 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 i. Balance Sheet BALANCE SHEET 2018 4- 12 A 31 8 (As of December 31, 2018) IWtV: 44At I , A1 t AA A & P' * k MAk : TFA4337 Name of the Project: Reduction And Phase-out of PFOS in Priority Sectors Grant No.: TFA4337 Project Granted by GEF 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 - 3,407,588.14 Expenditures Co-funding Received 1.24 itRIM:A iAiitit Fixed Assets - - Total Grant - 20,225,690.28 Transferred Construction- -318,134.51 Expenditures to be Total Payable Disposed Investments - - Other - - Transferred-out Payable 4.&#IgMtRI Construction in - 3,407,588.14 O- - ProgressOther Fund Progress =1 04r )N Equipment Retained Earnings Including:Equipment Losses in Suspense f Mt- 16,499,967.63 - - - Total Cash and Bank Cashin Bank 16,499,967.63 - - Including: Special - 12,567,346.63 - - Account 2. Cash an Hand - - Total Prepaid and Receivable 3L I IN Att Total Fixed Assets Total Application of - 19,907,555.77 Total Sources of - 19,907,555.77 Fund Fund 5 (2::) * H -&l ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I *MAY I 2018 4 12 A 31 E (For the Period Ended December 31,2018) :14 MRT: TFA4337 Name of the Project: Reduction And Phase-out of PFOS in Priority Grant No.: TFA4337 Sectors Project Granted by GEF Entity Name: International Environmental Cooperation Center Currency Unit: RMB Yuan Current Period Cumulative Current , 19 Cumulat Current Current peo ifeofPAD Cumulative Cumulat year Period Actual period / Life of PAD Actual ive % Budget complete complete d d Tl! E3KN*t S e F- 20,225,690.28 - 1,107,812,500.00 20,225,690.28 1.83% Total Sources of Fund 41U - 20,225,690.28 - 151,562,500.00 20,225,690.28 13.34% International Financing I,U-5MIt- 20,225,690.28 - 151,562,500.00 20,225,690.28 13,34% IBRD I Con r F cin - - - 956,250,000.00 -- Counter-part Financmng - 3,407,588.14 - 1,107,812,500.00 3,407,588.14 0.31% Toal Application of Funds LPFOS t?lz iIJM- - - 300,625,000.00 - PFOS Production Reduction 2.PFOS ANM] ijg- - - 514,437,500.00 - Reduction of PFOS Use Policy and Technical - 2,782,843.70 - 242,437,500.00 2,782,843.70 1.15% Assistance " Projec Manag- 624,744.44 - 50,312,500.00 624,744.44 1.24% Project Management PE Difference - 16,818,102.14 - - 16,818,102.14 - Change in Receivables 2.Cange iPaE - 318,134.51 - - 318,134.51 Change in Payables 3Caein ash B - 16,499,967.63 - - 16,499,967.63 - Change in Cash and Bank 4.4- Other 6 � и о � �� � 1 П� � "� � � 67 L I� � � � L 1 1 1 1 1 м м �F.' р7 'Э� у w: � �'r� � � � � {� Са 1]1.�' � Е' � F-� Е-� -� � Н � � , z �. л р и й С� � С х. � I" ., �- р �д � р '� г 1 � срС �� � ц��дц-в` � � � � й Э 1+�1 �К V'�'1 � "2�"' �.1.Li �ч О G Э 1 Э Э � С � �-+ _и ® `� U г� � � � а � � М 'С}' � � �}' �} DO ® tЭ�r .= и . �у ,Н�] L ь��д Э Э о�о� � с Г 1 {:k3( р о l� �G '� v✓ �l � 3: cJ м � � � ® �' � �= "� ы 1 1 1 Е 1 � r. � 6�д � д й W � N �W �дд � п г" � � � � _ м , йА � � ��? ++ � м � � � � ц� � � � р" �а �'i 'bл � � 1 1 Э 1 I \J у л у � С ¢ " 1 � �г� � д � � �ц� � � � 'ц., ) М� СО � -� � Ац-� � M1 "4R1➢C -С ;дг�' � Сб о ° `� 'Г �'' '� cv �"" � � � � � � ц,.+ �� � v „и' А� L й � р � ги � Э i Э г г �� � � �� ta`� ¢ �U¢ � l/�_ д) Ч }� .✓ � о � о � � � � ..�i � и � й � �� �¢ Э 1 Э 1 Э � � ' р � � W '� °" � � � L� � '� � � и � � � � р о д- er F�+ � � о � � •--� у,,, �' м v об ® � Q у �+-� Г. 00 Е� И = � � � о-� о р о � Э N �r t� � � � � U .`;� � � � й � и р @ cv м � �.�;k� � �U � � ¢ � � � о � '�-- о � • � n� � � � а � � �II р -�. и� �, � � с-�с � � сб � � � � q� �� д�}�, � � � �° р � ,LS � � �i�. й � � � � �Ф � -р � � }� ¢ � � � � � $ о �� �и '�' � � г� �'о �`с? н �V :� о .��w �s5 � �а�^°' � � � � � n � � � � ,� Е� �` � � о � Z '' и ° � р � � �� � �' у� а �� ��о � л � � гш � � �' а р � .� � .� �дд .°?, о �-,� z� W "r д., � г.р�' "� ао., `r С; 》：·―나· (Vq) *)MPkt* iv. Special Account Statement * ) Pk P # 'k A SPECIAL ACCOUNT STATEMENT 03t 2018 - - 12 )q 31 Ell (For the period ended December 3 1, 2018 Project Name: Reduction And Phase-out of PFOS in Priority Depository Bank: China Minsheng Banking Sectors Project Granted by GEF Cooperation, Beijing Finance Street Branch. TFA4337 01-: 697933122 Grant No.: TFA4337 Account No: 69793 3122 %A417; YT *11: A'FF Prepared by: International Environmental Cooperation Center Currency unit: USD A H (item) 1 *-9 (Amount) Part A-Account Activity for the period (2017/616) Beginning balance (Jun/6/2017) Wrl add: Total amount deposited by World Bank 2,946,976.67 (4A_VfflqKP1r1 ) 911.95 Total interest earned this period if deposited in Special Account 4 3 ffl V9 LT ' _' Vi - Total amount refunded to cover ineligible expenditures A > Deduct: 5U4A.Vi Total amount withdrawn 1,116,768.06 LE.tffi Total interest transferred out of the Special Account M r,+ffi(2018/12/3 1) Ending balance(Dec,31,201 8) 1,931,120.56 B %3 : Part B-Account Reconciliation 1. JJA R T- Z&4 eA, _ )q Amount advanced by World Bank 2,500,000.00 9 > Deduct: 2. VY VJTHqkA J Total amount recovered by World Bank 2,500,000.00 Outstanding amount advanced to the Special Account at Dec/31/2018 (2018/12/31) End balance of Special Account at 1,831,120.56 Dec,31,2018 Wn add: 5. 3VY*MMI E $ BAWIRPER A z Amount claimed but not yet credited at Dec,31,201 8, FHi pV 4j Application No -.10l - Amount 6. 669,791.39 Amount withdrawn but yet claimed 7. N*! Z,43 ffi (PQ2 ,*r± 5 H 6 Accumulative service charges (if not included in item 5.or 6.) A b deduct: 8. 911.95 Interest earned (if included in Special Account) 9. 2,500,000.00 Total advance to Special Account accounted for at Dec,31,2018 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全氟辛基磺酸及其全氟辛基 磺酸氟优先行业削减与淘汰项目。项目赠款协议于2017年6月6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使用、管理和监督。 该项目目标为帮助中国履行《关于持久性有机污染物的斯德哥尔摩公 约》有关淘汰PFOS的强制性义务，最大限度减少PFOS的使用和排 放，推动优先行业PFOS的削减和淘汰。项目主要活动包括：拟选择 PFOS生产行业和PFOS优先佼用行业开展行业减排淘汰活动，推动 相关政策完善，提高监管能力，实施替代品激励机制促进生产行业减 产等。项目计划资金总额17 725万美元，其中赠款资金2 425万美元， 扼诺配套资金15 300万粎元。项目关账日为2023年3月31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（2000〕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I月1日起至12月 31日止。本期报表会计期间为项目协议签署日即2017年6月6日至 20 18年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美元二人民 币6.25元；其余报表折算采用2018年12月28日汇率，即1美元＝ 人民币6.8632元。 10 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：湖北项目办、广东项目办，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负责对本级、地方项目办及专用账户报表 数据进行汇总，各报表单位对本单位提供报表的真实性、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 12月世界银行拨付首存款（即周转金额度）为2500000,00美元。专 用账户期初余额0.00粎元，本期世界银行拨款总额2 946 976.67美元， 本期利息收入911.95粎元，本期支出1 116768.06美元，本期利息支 出0.00粎元，期末余额1 831 120.56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3 407 588,14 元，累计项目支出人民币3407588.14元。其中：PFOS生产行业削 减本期支出人民币0.00元，累计支出人民币O,00元；PFOS使用行业 削减本期支出人民币0.00元，累计支出人民币0.00元；政策制定和 技术支持本期支出人民币2782843.70元，累计支出人民币2782 843.70元；项目管理本期支出人民币624 744.44元，累计支出人民币 624 744.44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1 6 499 967.63 元，其中：专用账户存款余额1 831 120.56美元，折合人民币 12 567 346.63元，幼东项目办银行存款余额人民币1 945 702.00元， 湖北项目办银行存款余额人民币1 986919.00元。 l1 5,3拨入赠款 截至2018年12月31日，项目累计收到赠款2 946 976.67美元， 折合人民币20 225 690.28元。 5.4应付款合计期末余额为人民币一318 134.51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67 391 .67元，专用账 户产生的利息为6258.90元，生态环境部对外合作与交流中心本期回 补收到的粎元金额与人民币支出之间的差异产生的汇兑收益人民币 391 785.08元。 6．其他情况说明 6.1费用可追溯回补期为：2016年7月I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。 l2 iv. Notes to the Financial Statements Notes to the Financial Statements 1. Introduction of the Project 1. 1 The Global Enviromnent Facility Grant Agreement of Reduction And Phase-out of PFOS in Priority Sectors Project (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 June 6, 2017. 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. The objectives of the project are a) to help China fulfill its mandatory obligation to phase out PFOS under the Stockholm Convention on Persistent Organic Pollutants, b) to minimize the use and release of PFOS and c) to facilitate the reduction and phase-out of PFOS in priority sectors. The main activities of the project include: a) choose the PFOS production sector and the PFOS use sectors with large quantities and high-risk to carry out industrial reduction and phase-out activities; b) promote the improvement of relevant policies and regulatory capacity and c) implement substitute incentive mechanism to promote production reduction and so on. The total cost of the project is USD 177.25million which is a combination of USD24.25million grant from GEF and USD153.00 million from co-financing. The closing date of the project is March 31, 2023. 2. Accounting Principle 2.1 The financial statements was prepared in accordance with the Accounting Principle of the Financial Management Guidelines of Projects Financed by GEF(Ca i [201 7]N6. 33) and Accounting Principle of the World Bank Loan Project (CaUffi [2000]No. 13) from the MOR 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 is USD. 2.3 Accounting period is the Gregorian calendar, which is from January 1 to December 3 1. Financial Statement for the current accounting period is from the effectiveness date which is June 6, 2017 to December 31, 2018. 13 2.4 The exchange rate defined in the Project Appraisal Document (PAD) (USD1=RMB6.25 yuan) is used as the reporting exchange rate in the Summary of Sources and Uses of Funds when calculating the total project cost (life of PAD), the ending exchange rate used is the exchange rate as of December 28, 2018 (USD1=RMB6.8632 yuan) in other financial statements if mentioned. 3. Scope of the Consolidated Statements 3.1 The Special Account Statement was prepared by TECO. 3.2 Consolidation scope of the financial statement covers the financial statements of IECO and two local project implementation entities, namely, Hubei Project Office, Guangdong Project Office and special account statements.IECO is responsible for preparing its own financial statements and summarizing financial statements of two project offices and special account statements. Each entity has the responsibility for the authenticity and integrity of its own 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. The account number is 697933122, currency unit is USD. The first withdrawal (namely turn-over fund) was USD2 500 000.00. The opening balance was USDO.00,total amount withdrawn from the Special Account was USD2 946 976,67,total interest income was USD911.95, the project expenditure is USD1 116 768.06 , interest expense was USDO.00 and the closing balance as of December 31, 2018 was USD1 831 120.56. 5. Notes to the Financial Statement Accounts 5.1 Project Expenditure As of December 31, 2018, the current project expenditure is RMB 3 407 588.14 yuan, and the accumulated project expenditure is RMB 3 407 588.14 yuan. The details are as following: the current payout for PFOS production reduction is RMB 0.00 yuan, and the accumulated payout is RMB 0.00 yuan; the current payout for reduction of PFOS use is RMB 0.00 yuan, and the accumulated payout is RMB 0.00 yuan; the current payout for policy and technical assistance is RMB2 782 843.70 yuan, and the accumulated payout is RMB2 782 843.70 yuan; the current payout for project management is RMB624 744.44 yuan, and the accumulated payout is RMB624 744.44 yuan. 5.2 Cash and Bank 14 The balance of Cash and Bank account is RMIB16 499 967.63yuan as of December 31, 2018, which is the ending balance of Special Account is USD1 831 120.56,equivalent to RMB12 567 346.63 yuan,balance of Guangdong PMO bank account is RMB1 945 702.00 yuan and balance of Hubei PMO bank account is RMIB1 986 919.00 yuan. 5.3 Grant As of December 31, 2018, the accumulated grant received is USD 2 946 976.67, approximately RMB20 225 690.28 yuan. 5.4 The ending balance of Payables is RMB-318 134.51 yuan, which includes that the prepaid cost incurred by IECO is RMB67 391.67 yuan, interest of the special account is RMB6 258.90 yuan and the exchange rate gain is RMB391 785.08 yuan. 6. Other Explanation for the Financial Statements 6.1 Eligible Expenditures on or after July 1, 2016 and prior to the date of the GA (June 6, 2017) 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