Audit Office of Guangxi Zhuang Autonomous Region of the People's Republic of China Audit Report #±kV [2019) 27 - GXAUDITREPORT [2019) NO.27 Project Name: Guangxi Rural Poverty Alleviation Pilot Project Financed by the World Bank i~: 8670-CN Loan No. 8670-CN Project Entity: Poverty Alleviation and Development Office of Guangxi Zhuang Autonomous Region ì†9 ]: - 2017 - 6 ) 19 H i 2018 # 12 ] 31 Accounting Period: June 19, 2017 - December 31, 2018 Contents V t I................................................................................................. 1 I. A u d itor's O p in ion .............................................................................................3 k 4 - l A -a #R * Ff i ......................................................................... 6 II. Financial Statements and Notes to the Financial Statements.......................6 ....................................................................................... 6 i. B alan ce S h eet............................................................................................. 6 J)k D 4 1 A ....................................................................................... 8 ii. Summary of Sources and Uses of Funds by Project Component.............8 ( rr .....................................................................1 0 iii. Statement of Implementation of Loan Agreement................................ 10 ( 19 ) 1 1 C _i - -F'_ A ................................................................................. 11I iv. Special Account Statement..................................................................... 1 ( -,T ) t _,_ R A FI 'A ................................................................................. 13 v. Notes to the Financial Statements........................................................... 16 ........................................................................... 1 9 III. Audit Findings and Recommendations....................................................... 22 IV. Annex: LitofChecked.Subprojects.of.th.Cu...................... 35 IV Annex: List of Checked Sub-projects of the Current Period..3..........5.3 一、审计师意见 审计师意见 幼襼壮族自治区扶贫开发办公室： 我们宙计了世界银行贷款幼襼贫困片区农村扶贫试点示范项目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、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3 页至第咚页）。 （一）项目执行单位及幼襼壮族自治区财政厅对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表及贷款协定执行情况 表是你办的责任，簖制专用账户报表是广西壮族自治区财政厅的责任，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，计划和执行甲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，我们买施了必要的 审计程序。我们运压职业判断选择甲计程序，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 1 内部控制的育效性发最意见。甲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急体列报。 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 我们认为，第一段所歹州才务报表在所有重大方面按照中国的会i一卜准 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广 襼贫困片区农村扶贫试点示范项目2018年12月31日的对务状况，以及 截至该日同期间约财务收支、项目执行和专用账尸收支情况。 （四）其他事项 我们还审查了本期内报送给世界银行的第GXRP001号提款曰请书及 所附资料。我侦认为，这些资料均符合贷款协定的要求，可以作为申请提 款的依据。 本甲计师意见之后，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、审计发现的司题及建议。 中华人民共知国幼襼壮族自治区审计厅 2019年6月26日 地址：中国幼襼南宁币民族大道98号 由卜政簖码：530022 电话：86一771一5800259 传真：86一771一5800259 1. Auditor's Opinion Auditor's Opinion To Poverty Alleviation and Development Office of Guangxi Zhuang Autonomous Region ' Nle have audited the special purpose financial statements (frorn page 3 to page 18) of Guangxi Rural Poverty Alleviation Pilot Project Financed by the World Bank, which comprise the Balance Sheet as of December 31, 2018, the Surnmary 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. The Responsibility of Project Entity and the Finance Department of Guangxi Zhuang Autonomous Region 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 the Finance Department of Guangxi Zhuang 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, 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 perforn-iing procedures to obtain audit evidence about the 3 amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatenent 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 by management, as well as evaluating the overall presentatiori 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 Guangxi Rural Poverty Alleviation Pilot Project Financed by the World Bank 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 enede in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement. Other Matter We also examined the withdrawal application No.GXRP001 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 repori consists of the Auditor's Opinion and two more parts hereinafter: Financial Statements and Notes to the Financial Statements, Audit Findings and Recommendations. Audit Office of Guangxi Zhuang Autonomous Region of the People's Republic of China June 26, 2019 4I Address: No. 98, Minzu Avenue, Nanning, Guangxi, P.R. China Postcode: 530022 Tel.: 86-771-5800259 Fax: 86-771-5800259 The English translation is for the convenience of report users; please take the Chinese audit report as the only official version. 5 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCESHEET 2018 - 12 il 31 E (As of December 31, 2018) -k~ 95': f-#x9vT-W-ffi$vT Étt1 Project Name: Gu1ang-ýxi Rural Pcverty Alieviation Pilot Project Financed by Une WorCI Bank Prepared bv:Poverty Alleviation and Development Office of Guangxi Zhuang Currency Unit: RMB Yuan Autonomous Region b ~Line Line. 6 , 11 M . it Application of Fund N Besinmg Balance End:ng Balan Sources of Fnd No Beginning Balance Ending Balance T1tl9 Poe [p7ei488 75 Total froject 8 - 147,720,131 40 Total Projcct Expenditures- Approprition Funds i i 7 f * ý1ýi7- J H tý-_ý * 1 Fixed Assets Transfecrrd 2 - Project Capital and C p '9 L Surplus Construction Expenditures includi' Grants to be Dis:osed 1 Grants 3. 4 N 31 - 73.871.230.6 Investments t ransferred-out Tntal Project Loan nin Progress 5 - 119.779,48875 Ttal Projeci 31 73,871 230.65 Construction ______ _ i Proggs Inv,estnent Loan 6 -c- 33 -e73,87],230.65 nvesment Loan Recejvable Foreign Loan Ineluding: World Bank 7 - 34 Investment Loan Receivable Including IDA Appropnati on of Investmnent 8 IBRD 35 73,871.230.65 IncludingÄiAppropriation of 9 - Technical 36 World Bank Investment Loan Coo eration RO, i6 1- 10 37- Equipment Co- Financin -T 0 -.' ' - --_ --- ----- .... . . .. .... ..... nluding: Equipment Losses 1l- - Doet 3 Dornestic Loan in Sus ense 12, 63,9Tti 446.1 -)le 1 'öa 19 Total Cash and Bank Other Inse 1. C n s ank, 13 - 63.,54.446.22 Appropniation of 40 Investment Loan lIelDie: SpMiT"Aren2 i 14 62.960,194 62 Including: World Bank 41 nieludin: Special Account Loan 2ýa- ,ci -'lt -< 7__ -1 Cash on Hand Bond Fund R (To be continued) 6 al Pi a263.347 31 Conistru,con Fx end,tn e 43 - - (u be >ffset Includim World Bank Ln 17 -I 44 1 8 tS7M Inerest Recei alble Total Pa abi Ek1, LL ifkJ World Bank Ljan Commitmrt Fee 18 - - Ic lhdin World Tank 45 Receivan Lran Interst P able World Bank Ljan Sl \ict- 19 46- rld Fank 1 an 4 Fee ReceivaLla C omt uient Fee Fava Rle Lorld Batik ! l i 4694 r, n larkeable Secutrities 21 -rld Bank oan en 47-- Fee Paal e Total Fixed Assets tSer Pavab4- rik 9L, 'u k~E 5t 49 Fiec Assets. Cosi Appropriation of Fnd 41~ ffvt 4v, i Lss Accu multed 23- Rf -] ii Fie Assetse Netirig. Fixed Assets Pending Disposal Fixed Assets Losses in Suspcnrse Total Applcatier of Fund 734.997-282-35 Total Sourcen of Fund 2',147,82 , 7 ( ) JA, ik k ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I T*1 l±2018 12 F 31 (For the period ended December 31, 2018) Project Name: Guangxi Rural Poverty Alleviation Pilot Project Financed by the World Bank Prepared by:Poverty Alleviation and Development Office of Guangxi Zhuang Currency Unit: RMB Yuan Autonoinous Region Current Perind Cunulatjve Currnl Period Current Period PCrrn % Hi x P i Cumulative Cumulative Budget ActuA Peri l Life RAD Actual Completed *o l T7 256.442.500 00 221,591,362.35 86.41% 1.186,500,000.00 221591.362.05 18.68% Total Financing Wrnk L06919700 00 73.871.230.65 64.09% 650,0000000.03 73,87230 65 11.36% World Bank Loan 49. 522800 00 14 720, 13 1 40 98 79% 536500,000.00 147720131 40 27.53% Counterpart Financirg 149.522.800.00 146,20,2 200 97 78% 53650C,00030 146.200.000 00 27.25% Finan.ial Povert' Relief Funds 2 . . ............. C2aLrj es el Sup)ntnFud - l 520 1 31.40 - 1.520.1 31 40 - 3 1nk- Self-raLsed funds 256,442,500.00 119.779,488.75 46.71% 1, 16.500,0000 119,779,488.75 10.10% Total Application of Funds lrean de vaeC P 88,09,700 00 13.950,047.70 15 71% 586,950,000.00 13,950,047.70 2.38 Increasing the Value Chain for Povei 2. ..... .1 ................I... .. äaPln u ad i 8 718 0000 94,025,642.21 84.08% 407,865,003.00 94,025,642.21 23.05% Increase Public Infr-astructure and Sermces 3..92 13.94% 67.665,000.00 3,347,172 92 4 95% IncreasInvestmer in Povert-snckenArieas 4- Si H a f 1eM Ean dj . 18,553.600.00 3,176,764.08 17 12% 79.395,000.00 2,1763764 08 4.51%0 Project Mvanagýement, M&E anid Lcarn 5. fi 'lJ, 4xWB 11.627.0i000 3,445361.76 29 64% 52.000.000.00 .445.861.76 6.631 Loan Imerest and Commintein Fee 6 feE 1,625,000 00 1,707,300 00 105 06% 1.625 000 00 1707.300.00 0506% Frunt-enid Fet 7.- 126,70C-08 j- - 126,700.08 Exchange Gains nr Losses - 2 -------70--8- - 101,8 l873.30 - 10 811,873 3 Difference i- I 263,3731 - 5 1.263.347.31 Change in Receinable ' V- -13 389580 78 -13.389.580.78 Change in Payable 363,95,146 29 -63,954,446.29- Change in Cash and Bank 4 92 - -16,339 - -1633.52 Other 83 -－一―不 〕〔：〕〔！!& 鵝一－－一不 華註一華；…＿誰 一！！〕＿一化。 曇i‘一寫可畫一用 ！〕、一 〕公三 (kg) 77- ffl C):ý: rU iv. Special Account Statement -t ffi SPECIAL ACCOUNT STATEMENT T- ý A, IRR 9-ý 2 0 1 ý 1 r- 12 , 94 3 1 El (For the period encied December 31, 2018) Lj 79L;177t ý_ i -e -t- tK 5t IT, Projecý Name: GLIallGxi» Riufai Poveny mleviinon Deposiiorv B-ank: Nianning Branch, Pilot Project Financed by the World Bank China Guangfa Bank ffiý',,:K 8671/0-CN C, 5-: 9550880206799600203 Loan No. 8670-CN Accouni Xo. : 9550880206799600203 I"- BI, lit 91- 4-1,` t; PrepHred by: The Financc Department of Guanpi Currency: USD Zh Liang A uton omous P, egioll . ...................... Part A-A cc c) urn A cTivitv for -.,h e C i Trent Ileri od Amolint - --- - --------------------------------- . ......... . ....... . .... . ....... di i ou iýi Reguining Balancc tM, Add i C.1t00,000.00 Total AmOLInt Deposned this Perwel bv \klorkl bank 4, Al 1-1112, 111k J!ý 1ý1 ii, Total lnýeiesl Fmtied tfins Pc-.iod if Deposited in Special Account A-PI 11 !1ý Total Amouint Refunded Ihis Period to Cover lneIi2ýi131c EXPCIldItUres Deduct Total Ameurit WithdraNNri this Peried 0.64 4 J ý- L 1ý K 1, if'O;i Y Total SeF\ ice Cýwges tIvis Period if not Incluåd in Alm, e AMOLini ýVitlidraiý,ii 5,00 + FndinL Halance 9,ý 73,591-71 (,Tobecoiitinued) Pan B-Account Reconciliation Amount 10 0009no 09 AniountAdvanced by World Bank Deductý Total Amnount Recovered bv World Bank Atstad n A mount Advanced to the Specia: Account at the End of this Period Ending Balance of Special Account 0,17..591 71 Add: M ±±{IIA01 5 ýzEkl H{U R ffij±WlTRiM Amoun Claimed hut not vet Credited at the End of this Period 4,.0 Applicalion No. Am1ount Amount Witldrawni but not vet Claimed at the End of this Period 828,510.64 CumulaLIve Service Charges (If not Incliuded in Item 5 or 6) .0 Deduct: Interest Earned (jf Included in SpeCial AcCoUnt) 2 Total Advance ro the Special Account Aceonted for at the End of tis Perod 12 （五）财务报表附注 财务报表附注 1．项目溉况 世界银行贷款幼襼贫困片区农村扶贫试点示范项目贷款号为 8670一CN，旨在通过在项目县示范价值链开发模型增加创收机会。该项目 内容包括：提升面向贫困的价值链；提高公共基础设施和服务；提高对贫 困地区的投入：项目管理、监侧评估与学习等。项目协议于2017年2月 27日签订，2017兰6月19日生效，预计2023年6月30日关闭。项目计 划总投资为人民币1,186,500,000.00元，其中世界银行贷款总额为 100,000,000.00粎元，折合人民币650,000,000.00元。 2．财务报表编制范围 本则务报表的簖制范围包括幼襼壮族自治区扶贫开发办公室、10个 县项目办的时务报表及厂襼壮族自治区财政厅专用账户报表。 3．三要会计政策 3.1本项目财务报辰按照财政部《世界银行贷款项目会计核算办法》 （则际早〔200创13号）的要求编制。 3.2会计核算年度采用公历年制，即公历每兰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拐。 3.4按照中国人民银行2018年12月28日汇率，即1美元＝人民币 6 .8632元。 4．报表科目说明 4.1项目支出 l3 截至2018年12月31日项目支出合计人民币119,779,488.75元，占 总投资计划的10.10％。 4.2货币资金 2018年12月31日余额为人民币63,954,446.29元，其中专厌账尸存 款折合人民币62,960,1 94.62元。 4.3预付及应收款 2018主12月哭日余额为人民币51,263,3共7.31元，主要是预付工程 款、县财政局或县扶贫办代管的项目资金等。 4.4项目拨款 2018兰12月31日余额为人民币147,720,!31.40元，是己到位的配套 资金，占计划的27.53％。 4.5项目借款 2018年12月31日余额为人民币73,871,230.65元，全部为国际复兴 开发银行贷款。 截至2018年12月31日，累计提取世界银行贷款资金1仇763,380．巧 粎元，占贷款总额的10.76％。其中：建设期利息和承诺费513,380.15美 元，占该类计划的6.42%；项目先征费250,000美元，专用账户周转金 10,000, 000.00美元。 4.6应付款 2018年12月31日余额为人民币13,3 89,580.78元，王要是应付工程 款、扣留的工程质保金等。 4.7留成收入 2018年12月31日余额人民币16,339.52元，其中：专用账户存款利 息收入人民币14,463 16元；各县项目办银行账户存款利息收入人民币 l,876.36元。 14 5．专用贝镼户使用情况 本项目专用账户没在幼发银行股份有限公司南宁分行营业部，账号为 9550880206799600203，币种为美元。专用账户首次存款10,000,000.00 粎元。期初余额0.00粎元，本期回补10,00。，000.00美元，年（息收入2,107.35 粎元，本期支付828,5 10.64粎元，期末余额9,173,591.71美元。 15 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The Loan No. of Guangxi Rural Poverty Alleviation Pilot Pr ject Financed by the World Bank is 8670-CN. The objective of the project is to increase income generation opportunity through demonstration of value chain development models in the project counties. The main contents of the project include improvement of pro-poor value chains, public infrastructure and services, enhancing investments in poor areas, project management, montitoring and evaluation, and learning, etc. The Project Agreement was signed on February 27, 2017 and came into effect on June 19, 2017. The account of the project will be closed before June 30, 2023. The total investment plan of the project was RMB1,186,500,000.00 yuan, among'",hich the total amount of the World Bank loan was USDI 00,000,000.00, equivalent to RMB650,000,000.00 yuan. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of Poverty Alleviation and Development Office of Guangxi Zhuang Autonomous Region and 10 project offices of county level, as well as the Special Account Statement of Finance Department of Guangxi Zhuang Autonomous Region. 3. Accountinc, Policies 3.1 The Financial Statements of the prql*ect Nvere prepared according to the requirements of 4ccounting Methods for the 47orld Bank Financed Prqject (Ca izi[2000]No. 13 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January I to December 3 1 0.3 The accrual basis and the debit/credit double entry bookkeeping method 16 are adopted. RIB is used as the recording currency of bookkeeping. 3.4 The exchange rate adopted in the financial statements was the exchange rate on December 28, 2018 of the People's Bank of China, which is USD1= RMB6.8632 yuan. 4. Explanation of Subjects 4.1 Total Project expenditures As of December 31, 2018, the nrnject expenditure was RMB119,779,488.75 yuan, accounting for 10.10% of the total investment plan. 4.2 Cash and Bank The balance on December 31, 2018 was RMB63,954,446.29 yuan, including the deposit in the Special Account, that was converted to RMNIB62,960,194.62 yuan. 4.3 Prepaid and Receivable The balance on December 31, 2018 was RMB51,263,347.31 yuan, which were mainly the advance payments and the project funds to be held in trust by Finance Bureaus or Poverty Alleviation and Development Offices of county level. 4.4 Project Appropriation Funds The balance on December 31, 2018 was RMB147,720,131.40 yuan, which was the counterpart funds put in place, accounting for 27.53% of the plan. 4.5 Project Loan The balance on December 31, 2018 was RMB73,871,230.65 yuan, all of which was the IBRD loan. By the end of December 31, 2018, accumulated USD10,763,380.15 of the World Bank loan had been withdrawn, accounting for 10.76% of the total, among which the withdrawal for loan interest and commitment fee was 17 USD513,380.15, accounting for 6.42% of the category plan; the withdrawal for front-end fee was USD250,000.00, the withdrawal for working capital of Special Account was USD10,000,000.00. 4.6 Payable The balance on December 31, 2018 was RMB13,389,580.78 yuan, mainly the payable civil works, the retention money and so on. 4.7 Retained Earnings The balance on December 31, 2018 was RMB16,339.52 yuan, among which the the interest earned of bank deposit of Special Account was RMB 14,463.16 yuan, the interest earned on bank deposit of county PMOs was RMB1,876.36 yuan. 5. Special Account The Special Account of this project is set in Business Department of Nanning Branch, China Guangfa Bank, with the account number of 9550880206799600203, and USD as currency unit. The initial deposit of the Special Account is USD10,000,000.00. The opening balance of the current period was USDO.00, the reimbursement of the current period was USD10,000,000.00, the interest earned of the current period was USD2,107.35, and the disbursement of the current period was USD828,510.64. Thus, the ending balance was USD9,173,591.71. 18