3O JUN 20 Shanxi Provincial Audit Office of the People's Republie of China Audit Report I -Wk4 [2015]3 39-v SHANX AUDIT REPORT C2015] NO.39 Project Narne: World Bank-Financed Changzhi Sustainable Urban Transport Project 9: 8130-CN Loan No.: 8130-CN Project Entity: Changzhi Urban Transport Projeet Management Center 2014 Accounting Year: 2014 Contents '. . . ....................................................1 I. Auditor's Opinion ....................3.... ...........3 .............................................................S IT. Financial Statements and Notes to the Financial Statements........... 5 ( - ) *, -k........L........ ........................................................ 5 i. Balance Sheet .....................5.... ...........5 S:I ) J)T................. .......................................................... 6 ii. Summary of Sources and Uses of Funds by Project Component .... 6 o (1T 4t 1*fStk............t................................ 8 iii. Statement of Implementation of Loan Agreement ... ........... 8 V9 ....................................................................... 9 iv. Special Account Statement ........................... 9 (ia ) 4 At44 A i ................................................1..I1 v. Notes to the Financial Statements...................... 14 III.... Audit... ............................... 17 111. Audit Findings and Recommendations.................................. 21 盯 芝一飞 一、审计师意见 拳审计师意见 镼治市城市交通项目管理中心： 扩飞 我们审计了世界银行贷款山襼镼治城市交通可持续发展项目2014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 参16页）。 （一）项目执行单位及山襼省财政厅对财务报表的责任 拳 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 表是你中心的责任，簖制专用账户报表是山西省财政厅的责任，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。 巍； （二）审计责任 攀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。 参 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 一1一 了 畜 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 豹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。 钻， （三）审计意见 ／贝u、糼猛森篡篙氰珊歌黔退盟练象瓷 襼镼治城市交通可持续发展项目2014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。 拳 （四）其他事项 我们审查了本期内由山襼省财政厅报送给世界银行的第002号、第 拳003号提款申请书及所附资料。我们认为，这些资料符合贷款协议的要求， 可以作为申请提款的依据。 二本审计师意见之后，共同构成审计报告的还春噢肉容：财务报表及 财务报表附注和审计发现的问题及建议。考井梦 二一 亡一～一、，』 兹、：助襼省审计厅 2山5年6月知日 嘛：蜘缈‘ 地址：中国山襼省太原市新建南路文源巷18号 攀邮政簖码：030001 电话：86一0351一4185024 传真：86一0351一2021892 氦 一2一 礼· 1. Auditor's Opinion Auditor's Opinion To Changzhi Urban Transport Project Management Centre We have audited the special purpose financial statements (from page 5 to page 16) of World Bank-Financed Changzhi Sustainable Urban Transport Project , which comprise the Balance Sheet as of December 31, 2014, the Summary of C 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 Shanxi Provincial 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 C) Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Shanxi Provincial 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. 0, 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 0 amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of inaterial 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 U -3- 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 World Bank-Financed Changzhi Sustainable Urban Transport Project of December 31, 2014, 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 We also examined the withdrawal applications No.002 , No.003 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 Findifigs,and Recommendations. Shanxi Provincia4Audit Office of the People's Republic of China June d,30,2015 Address: 18 Wenyuan Alley, Xinjian South Road, Taiyuan , Shanxi Province, P.R. China Postcode:030001 Tel.: 86-0351-4185024 Fax: 86-0351-2021892 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 RAFAA BALANCE SHEET 2014 * 12 AJ 31 H (As of December 31, 2014) Project Name: World Bank-Financed Changzhi Sustainable Urban Transport Project Prepared by: Changzhi Urban Transport Project Management Center Currency Unit: RMB Yuan ApplicationofFund LineNo. Beginning Balance EndingBalance Souraces ofFund line No. Beginning Balance EndingBalancc -, IIga*g- 1 125,514,650.94 470,468,429,07 -, lg@ggil 28 161,820,220.37 183,459,988.37 Total Project Ependiturcs TotalProject Appropriation Funds I, VI'M12 2 72, ]H04MM1 fV 29 Fivd Assets Transferrd Project Capita] and CapltalSurplos 2.41W giMO a At: FINIX 3o Construction lxpenditures to be Disposed I Including:Gwts 3.l OiPlt[4 4 E. * IRtt 31 62,493,225.00 251,531,881.36 Investrents Transferred-out Total Project Loan 4. ?821W 5 125,514,650.94 470,468,429.07 1. )hfVlz1g 32 62,493,225.00 120,527,333.86 Construction in Progress TotalProect Loan a, tVg RgIRML 6 (1) IllHO 33 62,493,225.00 120,527,3316 Investnt Loan Receivable Poreign Loan -t): S tt fr Including: 7 Alp: 1PfKvit 34 WorldBankinvesinantLoanReccivable Including:ADA R ilwgv 8 l-iFIT'9;0flAff 35 62,493,225.00 120,527,333.86 Appropriation o[nventrrmt Loan IBRD P &J nfflttlcluding: 9 tA5t flrfM 36 Appropriation of World Bank Lrcvnrnt Loan Technical Cooperation IT, 9tErripwr10 M#tWCo-Financing 37 At- % t§R9hclading: 11 (2) [p lfat 38 Eqniprnot Losses in Suspense Dorstic Loan i Vl t l 12 106,220,465.25 10B,28B,108.47 2, AfL.tk a9 131,004,548.00 Total Cash and Bank OtherLoan 1. ulfrNk 13 105,220,349.87 108,284,681.57 R3, ±ggA&ggl 40 Cash in Bank Appropriation ofinvesnent loan ;t: flfV#O 14 38,643,954.68 61,231,352.85 Jt; liA-ftfR Including: Special Account Including: World Bank Loan 2. ft Cash on Hand 15 115.38 3,446.90 1., iHk# n Bond Fund 42 .A(1MdA l * 16 1,818,937.07 1,483,944.58 A, fO ggOt Construction 43 TolPsepaid and Receivable EpenditurestbelOffet ;Kt itWRf?I,B)iA Including: 17 4 ilMit 44 9,025,452.52 145,168,885.64 WorldBankTLanInterst Recivable Total Payable In a ft q*%R 18 A t ffV I Including: 45 World Bank ILan Conenilnt FeeReceivahle World Bank Loan Irest Payable hMtIfRAMO 19 nIffRRMN 46 World Bank Loan Service-Fee Receivable World Bank loan Conaitnent Fee Payable tL, ;M O 2a 1119iM tW A Rll 47 Marktable Securifies World Bank Loan Service Fee Payable w. 1Afilt 21 Ao,, it 48 Total Fied Assets OtherPayables VViFM22 A.±iWAWkZ 491 Find Assets,Cost Appropriation ofFund . 4iNilQ 23 A ViS A 50 15,155.37 79,726.25 LUss:Accurrulated Depreciation Retained Earnings (fi j*)IMil FbedAssets,Net 24 [MltOjfIM Disposalofffied Assets 25 1 -1 Fixed Assets losses in Suspese FLjM dfltilTotalApplication ofFund 27 233,354,053.25 560,240,482.12 t*5iZl- TotalApplicationofFund 51 233,354,053,26 580,240,482.12 -5- C tn fn Cc o 9 4n en en C, , o a e koe n en o Cn o c s rs n e o C 05 0 0 - - - -C 00 c o - = r·- 'fN m CD CD C·- rd Kce 00 - N sm -- e 0 C, ,D - " r9 9 0 0 0 0 9 0 0 0 01 9 rn sl CDo N . a e - =l ell CD 0 0 0 0 C-, -4l 7; 0 -c 6n 0> 66 t t- , I r- - o c, en co o? 00 n a, " M70-6r k - m r 'flfl C- r- 02 'l 0 .J N O 0 NO rO NO oN - o e - NO o o - 0' o 00 00 9 9 9n- a (fO fo o Cf 90o z - - NO - NO et 00 - 0 0 o '0 0 f f l f en m - fl w CD cr4 i rd ,. m n C g-, 00 0, 0 v- 0n 0- 0 0 00 < - 00 - 6 & -o oD 00 00*, NO 00o Z ,4 .>.= -- N - -. 00 00 0 NOoN f o3 '- j N - -& 0 U8 e . , In o - .- 001 C. tý t ca ~. -. 0Äe e,1 -5 t1- 1ý 1ý 1 了＇ 1 坤 ／瞭‘一＿ 丰 化 C· ·！戶，一 趁 iv. Special Account Statement - A * P # A SPECIAL ACCOUNT STATEMENT *,*R 12014 * 12 A 31 H (For the period ended December 31, 2014) Project Name: World Bank-Financed Changzhi Depository Bank: Shanxi branch, bank of Sustainable Urban Transport Project communications Ak -: 8130-CN PK- 7: 141000601146376688878 Loa n No. 81 ' )O-CN Account No. 141000601146376688878 A,' 4*1k. Lfi0Vrt;0F P FP f Xt Prep rcd by: The Finance Department of Shanxi Currency: USD Province A Part A-Account Activity for the. Current Period Amount 10 Vi 6,338,295.64 BeOnnin- Balance-01/01/2014 AM 9,447,227,30 Total Amount Deposited this Period by World Bank 4,283,99 Totall hilerest Earned this Period if Deposited in Special Account Total Aninom Rerunded this Period to Cover Ineligible Expenditor-'s Deducr v JqJ S f-J-P-Aw 5,782,843,19 Twal Arnount Withdmwn this Period -ZT, IN A- 204.00 Total Service Chirges this Period ifnot Included in Above Amount Withdrawn 10,006,759.74 [Ending Balance- 12/31/2014 To be continued B ,½3;v i'n Amount Part B-Account Reconcilintion Amount iM t lå10,000,000.00 Anount Advanced by World Bank Deduct: Total Anoint Recovered by World Bank 3. 4u1jl0041 i ý M 10,000,000.00 OuLtsianding Amount Advanced to the Special Account at the End of this Period 4. 9-JYK'tjjfi,,i.g 10,006,759.74 Ending Balance of Special Account Add: Amount Claimed but not yet Credited at the End of this Perod Application No. Amount 6 iE8V 1)]J91ZL¯S !it i ( 4i , å7a 5 U 6 4t'I') , 20.00 Cunmsulative Service Charges (If not Included in Item 5 or 6) Deduct: 8, P5tU AV ( 'fA.»" V'Y) 6779.74 Interest Earned (If Included in Special Account) 9. Ojj5J (M YA 'M' 10,000,000.00 Total Advance to the Special Account Accounted for at the End of this Period -lo- （五）财务报表附注 财务报表附注 舒李 1．项目概况 世行贷款山襼镼治城市交通可持续发展项目贷款号8130一CN，项目旨 在改善镼治市城市交通机动化水平，为市民创建一个安全、高效、节能的 封出行环境。项目内容包括四部分：一体化公交走廊改善；城市交通智能管 理系统；公共交通基础设施建设；机构能力建设。项目协议书于2012年 7月10日签订，20 12年8月24日生效，2017年12月31日关账。项目 。计划总投资为人民币1,257,175,500元，其中世行贷款总额1亿美元，折 合人民币630,000,000元；国内配套资金627,175,500元。 2．财务报表编制范围 财务报表的簖制范围为镼治市城市交通项目管理中心、长治市市政管 理处、镼治市财政局该项目专户及山西省财政厅专用账户报表。 ／·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〔2000〕13号）的要求编制。 豁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。 豁 3.4按照中国人民银行2014年12月31日汇率，即USDI＝人民币 6 .1 1 90元。 参 4．报表科目说明 4.1项目支出 2014年项目支出人民币344,953,778.13元，累计支出人民币 数； 一11一 了一 曳 扩咖 470,468,429.07元，占总投资计划的37％。 舒4.2货币资金 20 14年12月31日货币资金余额为人民币108,285,108.47元，比上年 增加人民币2,067,643 .22元，其中专用账户存款折合人民币61,231,3 62.85 兀。 扩叹－ 飞少 4.3预付及应收款 2014年12月31日余额为人民币1,483,944.58元，为预付农民工工资 攀保证金。 4.4项目拨款 2014年12月31日余额为人民币1 83,459,988.37元，其中：项目管理 中心项目拨款163,820,220 .37元，长治市政管理处项目拨款19,639,768元。 4.5项目借款 ：、2014年12月31日余额为人民币2,1,53 1,88些8巨元，其中：项妙 理中心世界银行贷款19,697,227.30粎元，折合人民币120,527,333.86兀； 镼治市政管理处国内贷款131,004,548元。 徐截至2014年12月31日，累计提取世界银行资金19, 697,227.30美元， 占贷款总额的19.70％。其中：工程累计提款9,122,352.82美元，货物咨询 等累计提款324,874.48粎元，先征费累计提款250,000美元（2012年发生）, 备用金累计提款10,000,000美元（2013年发生）。 短· 4.6应付款 2014年12月31日余额为人民币145,168,885.64元，其中：项目管理中心 应付款16,324,872.64元，主要为工程质保金；长治市政管理处应付款 128,844,013元，为应付工程款。 4.7留成收入 氰户 一12一 睼 (_ 才帅 2014年12月31日余额为人民币76,726.25元。 5．专用账户使用情况 本项目专用账户设在交通银行山西省分行，账号为 141000601146376688878，币种为美元。专用账户首次存款10,000,000美 元。20 14年年初余额6,335,295.64美元，本年度回补9,447,227.30美元， 那利息收入4,283.99粎元，本年度支付5,782,843.19美元，本期服务费支出 204粎元，期末余额10,006,759.74美元。 。6．其他需要说明的事项 项目资金平衡表中银行存款余额为108,2 84,661.57元，其中山西省财 政厅该项目专户存款余额61,231,362.85元，长治市财政局该项目专户银 行存款余额39,542,796,51元，华夏银行项目专户存款余额7,510,502.21元。 黔 拳 拳 截、 纷 乏， 一13一 扩一 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview The Loan No. of Changzhi Sustainable Urban Transport Project is 8130-CN. The project aims to improve urban transport mobility and creates a safe, efficient and energy-saving traveling environment for all users in the main city of Changzhi. The project consists of four components (a) Integrated corridor improvement; (b) Intelligent urban transport management system; (c) Public transport infrastructure; (d) Institutional capacity building. The Project Agreement was signed on July 10, 2012 and came into effect on August 24, 2012. The account will be closed on December 31. 2017. The total investment plan is RMB 1,257,175,500 yuan, among which the World Bank loan amount is USD 100 million, which is equivalent to RMB 630,000,000 yuan, and the counterpart fund is RMB 627,175,500 yuan. 2. Consolidation Scope of the Financial Statements The consolidation scope of the financial statements covers financial statements of Special Accounts set respectively for Changzhi Urban Transport Project Management Center, Changzhi Municipal Management Bureau, Financial Bureaus at both municipal and provincial level. Cr 3. Principal Accounting Policies I The financial statements of the project were prepared according to the requirement of 4ccounting Methods for World Bank Financed Project (Caijizi C2000) No.13). 3.2 In accounting practice, the Gregorian Calendar Year is adopted as the fiscal year from January 1 to December 3 1. (21 3.3 The accruals basis and debit/credit double-entry bookkeeping method are adopted. RMB is used as the recording currency of bookkeeping. 3.4 The exchange rate adopted in the financial statements was the exchange rate on December 31,2014 of the People's Bank of China, which was -14- USDI=RBM 6.1190. 4. Explanation of Subjects 4.1 Total Project Expenditures Project expenditures of 2014 amounted to RMB 344,953,778.13 yuan,The accumulated expenditure is RMB 470,468,429.07 Yuan, which accouted for 37% of the investment plan. 4.2 Monetary Fund The balance on December 31, 2014 was RMB 108,288,108.47 Yuan, with an increase of RMB 2,067,643.22 Yuan, compared with that of last year, among which the deposits in the special account were converted to RMB 61,231,362.85 Yuan. 4.3 Prepaid and Receivable Fund The balance on December 31,2014 was RMB 1,483,944.58 Yuan, comprising prepayment as security deposit for migrant workers' salary 4.4 Appropriate Fund The balance on December 31, 2014 was RMB183,459,988.37 Yuan, In which: the balance of Transport Project Management Center is RMB163,820,220.37 Yuan, and the balance of Municipal Management Bureau is RMB 19,639,768 Yuan. 4.5 Project Loan The balance on December 31, 2014 was RMB 251,531,881.86 Yuan, while the balance of Transport Project Management Center was RMB 120,527,333.86 Yuan including the World Bank loan USD 19,697,227.30 dollars.The balance of Municipal Management Bureau is RMB 131,004,548 Yuan which is domestic other loan. Up to December 31st 2014, USD 19,697,227.30 dollars was accumulatively withdrawn from World Bank capital, accounting for 19.70% of the total loan. It includes accumulative withdrawal of USD 9,122,352.82 dollars for project, USD 324,874.48 dollars for cargo consultation, USD 250,000 dollars as front -15- C -end fee (occurred in 2012) and USD 10,000,000 dollars as petty cash withdrawn accumulatively (occurred in 2013). 4.6 Payable: The balance on December 31st,2014 was RM4B 145,168,885.64 Yuan, In which: the balance of Transport Project Management Center is RMB 16,324,872.64 Yuan mainly for project warranty security. The balance of Municipal Management Bureau is RMB 128,844,013 Yuan which is project payables. 4.7 Retained Earnings The balance on December 31st,2014 was RMB 76,726.25 Yuan. 5. Special Account The special account of the project is set in Shanxi Branch of Bank -of C) Communications, with account number of 141000601146376688878 and USD Dollar as currency. The initial deposit in this special account was USD 10,000,000 dollars.The balance at the beginning of 2014 was USD 6,338,295.64 dollars. The reimbursement of this year was USD 9,447,227.30 dollars with earned interest of USD 4,283.99 dollars. The disbursement of this year was USD 5,782,843.19 dollars, and the service charge of this current period was USD 204 dollars.Thus, the ending balance was USD 10,006,759.74 dollars. 6. Other Explanations for the Financial Statements The remaining sum in the project balance sheet was RMB 108,284,661.57 Yuan, among which the balance in the special account of Shanxi Finance Department for the project was RMB 61,231,362.85 Yuan, the balance in the special account of Changzhi Municipal Financial Bureau for the project was RMB 39,542,796.51 Yuan, and the balance in the special account set in Hua Xia bank Co., Ltd. was RMB 7,510,502.21 Yuan. -16-