80599 .. ·\..; •r Xinjiang Uygur Autonomous Region Audit Office of the People's Republic of China it * 1§- *Audit Report ff#fi¥1~* (2013) 50% XINJIANG AUDIT REPORT ( 2013) N0.50 Project Name: Urumqi District Heating Project by the World Bank I' ~ ~X %: 8046-CN Loan No. : 8046-CN · ~~~fi-ft=~•***~~~-~-~~~00~~*~~~~~ ~~ Project Entity: Urumqi Heating Reform and Building Energy Efficiency International Technical Cooperation Project Office 4it~lt : 2012 Accounting Year: 2012 •. ,..,. \ ... ,.... Contents 'ff? it YiP :t ~ ..................................... .. .......................... .. 1 I. Auditor's Opinion ........................................................... ......................... 3 :::::' JJ!t -9}=!l-*&.!Jlt -9} :jft~:.!Jft11 ........... ················· ....................................6 II . Financial Statements affil Notes to the Financial Statements ............... 6 ( - ) *~-lfl-~* · ··· ············ ··· :·· ······· ······ ···· ···· ························ ; ........... 6 i. Balance Sheet ..................................................................................... 6 ( ::::: ) ~ ~ :litlt*························ .. ········································· .. ·········· 8 ii. Summary of Sources and Uses of Funds by Project Component.. ... 8 ,. ( =. ) ~~ M-~~ff'tt~7L:t ............................................................10 iii. Statement of Implementation of Loan Agreement ....... ................. 10 ( 129 ) t~ ~fi!tE.? =!l-* ........................................................................ 11 iv. Designated Account Statement ..................................................... 11 ( 1i) JJ!t -9}~l*l5ft11 ........................................................................ 13 v. Notes to the Financial Statements ....................................... ."........... 16 =. , Wit~~~ f~~.&9~JJ.. ' .................................................................. 19 ill. Audit Findings and Recommendations ............................................... 23 ~ 1n 'if1 it 1 11t -Y!l~ -1-r~ *~ ~ :t *1f~ ~ 1# ~ -ip m~ ~:It~ §1 2012 ~12A31S~~~+m*&·~~a~M~~~§J~~*·~-~ ~~fi~~-~~~-P~*·#~§~~~~*aM~~*~~ (1ft 6 :vr ~1ft 18 Pit -~~~~~~-~~-~+•*-~§J~~*a~•~~~fi ~~*~~~~-~,·~~~-~~-~~~g~~ff~-~'~ # jJt 1:!:-@ ts-: 1. ~M~OO~~~*~·~#M~~*~§~-~~~4~­ ~~§M~~-, ~~~~~0~~~; 2. ~#- ~ft~-¥~4~~-~~, ~~~13M~-*~# ~~f·-~-~~~~~·*•*· ~ili~-~~~~fi$#I~~£~~~M~-*~**** ~.~ili~~~0000.$#$~~00~$#$~~~~~fi1$#I ~,~~*~~~~m•~•*~~~*'*~~~ff$#I~~~ ~§~~~*~~~#~•*•~a*~~-~- ~a**~~~~*~•~••~~~*~~•,am~~J~ 4~$#ft~.~m~m~~~~~~'ifi"#fi~,~~u~~ts-~~ f--~-~~~~M~**•*··~~~W~.~*fi~~W~ ~,~J~#~~~•~u~,~m•~r~M~**~~~~-~ *~, 1S § ~ ~~p,Xf ~-~*~ ~ 1f* 1!i~*•J\!,. ifliti1f:i£~}J5if1fl m~m~*~•~~~~~~ili~*~*~*~~,~aw1fl~~­ *~ ,~,1:*-jU f~. am~~, ~m~•~•*~•~~~~.~~~ . ~~*'* ~~~1# 1 £~lfL ~m~~. • - am~M~••$m*•*~w~~~oo~~ **~·~*~~~*~~~-~~~¥*-~' ~~~~1~~ 1R1-J')#';f~ ~·*1fjt ~1#1&:P~~ ~:i!~ ~ 20121¥- 12 fJ 31 8 ~Jilt~ ~~&fi~~8~~~~Ji!t~~~.~~~ff~~~-p~~-~o ~ 1fJ $ ~ 1 * ~ !*J li1 ~ 5~ IR Jilt .ifkff *~J~i!t ~1R 1-J ~ 1lt oo 1. 002 %~-~-~&Mffl*~o~ill~~,~-~·~&mm•~~*~ ')#'-~~~¥~, ~~~~~·*-~*· 0 *'*~-~~~,#~~~·**·~~*~~fJ~: Jilt~* *&~~**ffl~~-#~~~~-&~~0 ~$A~#~oo•••*~~~ • •*rr 2013 .if. 6 fJ 26 8 :tmtdl: r:p oo•~~-*~ !§ %t rK ~•**w~~IF& 186% m~ ifJc.• ~lb: 83ooo2 ~ ~: 86-991-2821590 1~1{. : 86-991-2821590 I .Auditor's Opinion Auditor's Opinion Urumqi Heating Reform and Building Energy Efficiency International Technical Cooperation Project Office We have audited the special purpose financial statements (from page 6 to page 18) of Urumqi District Heating project financed by the World Bank, which comprise the Balance Sheet as of December 31, 2012, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan Agreement and the Designated Account Statement for the period then ended, and Notes to the Financial Statements. Project Entity and Autonomous Region 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 Agreement is the responsibility of your entity, while the preparation of the Designated Account Statement is the responsibility of Autonomous Region Finance Department, which includes: i. Preparing and fair presenting the accompanying fmancial 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 performing procedures to obtain audit evidence about the amounts and disclosures in the fmancial 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 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. Auditor's Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Urumqi District Heating Project financed by the World Bank as of December 31,2012, its financial receipts and disbursements, the project implementation and the receipts and disbursements of Designated 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 application from 001 , 002 and the attached documents submitted to the World Bank during the period. In our opinion, the withdrawal application and the attached documents complies 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 Findings and Recommendations. Xinjiang Uygur Autonomous Region Audit Office of the People's Republic of China June 26, 2013 Address: NO.l86 Jianshe Road, Urumqi City,Xinjiang,Uygur Autonomous Region, P.R. China Postcode: 830002 Tel. : 86-0991-2821590 Fax:86-0991-2821590 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. _,. II .Financial Statements and Notes to the Financial Statements (-) •*.lfL~;f{ i. Balance Sheet **Jfl-~* BALANCE SHEET 2012 ~ 12 fJ 31 EJ (As of December 31, 20 12) ~§~•= ~~·ff~a••**•~~~~•l•~§ Project Name: Urumqi District Heating Project by the World Bank ~~~~: ~~**$~~l~~~~~i00~&*~~~§~~~ Prepared by: Urumqi Heating Reform and Building Energy Effici ency International teaI Cooperat10n 1iechn' . PTOJeCt Offitee currency U. mt: RMBY uan m *• ~ ~ ,t; ti!X Une JVItiJD: JVIA-l't ~ ~ ~J'IX JVI-IIJl't l'm~t~ Application of Fund No. Beginning Balance Ending Balance Soun:ts of Fund L.incNo. Beginning Balance Endona Balance • . Jii biiR:I:-&il· Toul PIOJ«' - . r*nJ!w~it Totll Projoeo E'ponduurco I 903,616,130 32 1,2 12. 156,1 13.01 11 1!,100,000.00 473,100,000.0 Appropriation Funds I ll!I·Jll!mfii"' . =· l'Offlft.+:.l:i1SiAl!llfl:~8t . 2 29 Ft~ Nl Tnanorom:d Pm)ool Clpilol and Cophal Surplus c--- 2 r.t1JI1i,.RJ::t!l E'I'CftC!tCUICJIO bo o;_.s 3 I~Ulttff lnYCSimellll Tr>Nf'cm>tl.out 3 4 . . ~·l•lll!:l.ll; lneludons. Gronu • E.. ltllil:lt~it Tocal P..,... Loon JO 31 910.000.000 00 1,0$6,739.6.104 I. J11:111ll£1&:lt Total Projod 4 ltll'.:tl'l COMcruc:tlon ln Pr..,... 5 903.6116,230.32 1,212,156,113 01 32 980,000,000.00 1 .0~.739,4.10.... fnva1ment Loan -: . llitllc lndudona. Equopmau Losses .. s.._ Domcsric Loon li.. Jlilill~~it TCIUl c..h and Banlt 12 10*.932,630.17 JI$,092.4II.S6 2 QiU: Od>cr Loon 39 I lll!Hf.:l: P.ll • ..t.tlli1J\!Uil1l'~ 13 108,932.630.17 3U,092,411.56 40 Cuhin 8:1nk Appropriation or Investment Loon IC'f•: ·!;·lnl!n CommiuncM Foe II lndud•ns. Wotld Bank LoonlntetcSI 4; Receivable Poyablo l~ill£ ~tn)t;~Cf!Jit .!. IIIP ~lli·I11Hil.Yi.l:ifdl!P World Bank !AD s..v...,. Foe 19 World Bank l.ooll Comtnu"""" 46 ~vable FeePayoblc l!iH tl!lf!.l::.tl!i¢:MnJt -t • .fl'f!lioW 20 . Wotld Bank Loon Servo" Foo 47 Matlaablo Socutiucs Po)'ablo A. lllltllli"'1'l'it 1\.~!Z:I:~it 21 4S 9z,$2l.37· 22,528 K Tot,,l Fixed IU~etl 0Jh<:t Poyoblc5 ~ll>rflt"'Cifll 11,. ~.t.IHIIAJ!Jit 22 49 . Fo>noi~ lllfli!tl,./1111! 24 FI' Total Application of Funds {by 497.21 5,000.00 308.469.882 69 62"· 2,299. 760,000 00 1.212,1S6, 11301 53% Project Component) 1. !:!>IX I.!IM T ri Sbaqu Shayibake {SHN) 276,300,000 00 147,663.83412 53% 976,345,000 00 SIS,809,066.33 53% '11<1 I J:.l Urumql Weidian lll 2 ;; It! -:1011. 220,855,000.00 160,806.J48,47 73,.. 1,323,415,000 00 696,347,046.68 S3Yt (UIIN) 000 000 0.00 0.00 utfH'I Front-end Fee 4.~~ltilt.fii!JJ\ll Institutional 000 000 000 0.00 Strongthening and Training ~# Difference 153,269,767.76 J 17,683,537.43 I. l!'it&"'jt'«:, Change in Receivables -88.920,906 92 68, 121.389.38 2. ai:ta~«:. Change in Payables 91,849,1)8 22 2J9.1S6.S42.31 3. 1/iili~i<:ll:«:. Change in Cash and 276, I 59,U 1.39 38S,092,48l.S6 Bank 4. ,tt·t?; Other 57.879,961.5 I 103,626,208.80 J;[ fj lit It*( .::. ) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT IT -*Mit~ 20121¥- 12}] 31 E (For the period ended December 3 1, 2012 ) ~~~~: ~~-IT~~~-**~~~~~~~~~~ Project Name: Urumqi District Heating Project by the World Bank * 00 ~ ia ~1j.: ~ t- 1f-rfi 1~H~~ ~ ~ ~ ~~ 1t fi~ l!tf it/It 1;-ff: JJi ~ 11-~ t. }? if5 .;l1.it: A ~ if5 7t Prepared by: Urumqi Heating Reform and Bui lding Energy Efficiency International Technical Cooperation Project Office Currency Unit: RMB Yuan Jji~~~ JJs:tw Project Comoonent Protect Exoenditure .mH-x:il e.31:i1 ~ 1" ~.tAmJJsx ~HH:Ui Cumulative Amount Assets Transferred tfl!Itj lij Construction Investments !el~iti1" ii?JJI1i1" xm~l" ~J!~i"" Work in Progress Expenditures to Transferredo()ut Fixed Asset CUTTCnt Asset Intaneible Asset Deferred Asset be DispOSed U;J;!i!:1!.1filli .fil Shaqu Sltayibake (SHN) 515,809,066.33 515,809,066.33 2.lfliEI!=J¥H!Ifllli~ Urumqi Weidian IU (\llt~j 696,347,046.68 696,347,046.68 3.;t?iEm Front-end Fee 0.00 0.00 4 ..tll.~ll~~1JJ~!i\ lnsli tutional Strongthening and Training 0.00 0.00 iht 1,212,156,113.01 1,212,156,1 13.01 Total 9 c.=.> ~~#J.)t~Arit~* iii. Statement of Implementation of Loan Agreement 11!' tK ]b. Jt ~ 1t 'It ?JL STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT * *-.M~J: 20121f. 12 JJ 31 s (For the period ended December 31, 2012 ) ~~~~: ~$•rr~~~•**~o/~~~tt~~~~ Project Name: Xinjiang Urban Transport and Environmental Improvement Project Financed by the ADB ··~ft: ••***•~&·~--~-00~~#~~~~~~- -~-ft: -~Al~~ Prepared by: Urumqi Heating Reform and Building Energy Efficiency lntemaliuoal Technical Cooperation Project Office Currencv Unit :USD/ RMB Y ~~17t~£:Si ;$:q=:JlttU~~ Jlii·~~J& ~ j~J Loan Amount Current-period Withdrawals Cumulative Withdrawals Category ~Jt *Jt tlf~A~ifi ~ft tfr~.A~i!i USD USD RMB USD R>'-iB a.I~.f!l~~ Civil works and goods 99,020,000.00 7,368,262.28 46,313,212.56 7,368,262.28 46,313,212.56 b.~iiilm*, ntvrJ, ~~.fOliJfit~ Consultants services, and Training, Study 730,000.00 0.00 0.00 0.00 0.00 tours, and Workshops c.~ID:~ Front-end Fee 250,000.00 250,000.00 I ,571,375.00 250,000.00 1,571,375.00 d.JJG'*~5tili Service charges 10.00 62.86 10.00 62.86 ~fflY*f'~~ Balance of lmprest I0,000,000.00 62,855,000.00 I0,000,000.00 62,855,000.00 Accornt ~it Total I00,000,000 00 17,618,2n28 110,739,650.42 17,618,272.28 110,739,650.42, 10 (lm)~Jt!t?4l* iv. Designated Account Statement ~>tJi*?~* DESIGNATED ACCOUNT STATEMENT *-M~~ 2012 .1f 12 JJ 31 s (For the period ended December 31, 2012) ~m~~ ~••ft~•••**•~-~~-~-~m Project Name: Urumqi District Heating Project by the World Bank ~ ~ -15-: 8046-CN Loan No. 8046-CN 1Ai6~~1.ft: k?ril3t-i1F § jf; l!.!lltiffl Prepared by: The Finance Department of Xinjiang Uygur Autonomous Region *F·ft~~: ~OO·ft~-~~ft~~~ Depository Bank: China Bank Xinjiang Branch SUB ~%: 108223318310 Account No. : I 082233183 I 0 jtrp#~: ~;t Currenc : USD A SU:5t: *W1~mP*?l&stm~ it; ~ Part A-Account Activity for the Current Period Amount 0 17,368,272.28 3,584.26 ·• I'Jif,o.:., ' Total Amount Refunded this Period to Cover Ineligible E enditures ~Y: Deduct: 9,691,508.66 I ' 9! Total Service Charges this Period if not Included in 10.00 Above Amount Withdrawn Wl*~Wl 7,680,337.88 Endin Balance (If; ~To be continued) Amount I 0,000,000.00 ADB to the Special 10,000,000.00 7,680,337.88 1$ t~ ·I:) .!i7 ~~ Application No. Amount 2,323,236.38 10.00 ~d> : Deduct: 3,584.26 10,000,000.00 1.~ f3 -ift~ -tlt1i~fK ~1-*-1f~~1#~~~~~lt:0i § -T 2011 ~ 6 JJ 8 s ~ i-~~#J-i5C #-t-~1¥-~~fz, JYiit 20151¥- 12 JJ 31 EJ f£~*~ §1 ~ }ti~i#;I, ~*~1~Jfl }tq ~ 2015 1f. 12 JJ 31 EJ jJ 11:. ~~ §1 ~ ~~ E1 #JJ~~·*~~~~~~~~~~~*~-~~~~--~,*~ ····~~-*~~~.*~EI~ft*~JJA~~23~ft, ~~ -tit 1i ~ *~ 1 1G ~ Jt, tJf ~A ~ fP 6. 7 1Gft, *m ~ -T~ ~ § ~~- ft ~ * 30%, f9?.**~A~ fP 16.31Gft, #1 -f,~-~*~ 70%. ~~ § -@~ * 't~~~~Ift.~~~~I~~~~~~~~§9~$3+~~ §. 2. J.-*:i,i ~J 1B IE *~~--~-~~OO~M~·*~~h~~~C~~~#~h ~~~>~~~-*A~~g~*ff~~-~·* · 3.3:. Jl.~itikJf{ 3.1 *:rJJt EI ~~--~mt.li!t*$ «-tlt~l&1-r~*~~ § ~it~1tro­ *» (~~if* C2oooJ 13% > ~!f>Jt~JH~t 3.2 ~it:tt 1t1f-~*)fl ~})J 1¥-~J, &p ~})J ~1¥- 1 JJ 1 EJ ~ 12 JJ 31 EJ 0 3.3 *~ EI 4it{~ ~ ~ ":fX }t ~ ~ 1#~" 1t jJ iG*lJ P!~ , *Jfl1it~ ~*~~*~~, ~A~~~~~*ft~. rp 3 .4 6.2855 jt * !ffi ~ 00 A ~ 4& 1f 20 12 1f. 12 0 JJ 31 E1 1C. , &p USD 1=A ~ 4.4l-*# 13-J.)t lf}j 4.1 J:Yi § ~ili 2012 1¥-Jffi: §.:till A~ fJ5 308,469,882.69 5t, -".it .:till A~ if5 1,212,156,113.01 Jt, ~ l~'~*it~tj E8 53%. 4.2~# 20121¥- 12 JJ 31 s ~$Ji;k.J A~ if5 105,634,015.58 x. 4.3 :ht if5 *~ 20121¥- 12 JJ 31 s PtFP*~~~;k.JA~ if5 385,092,481.56 Jt, ~ If t~ JtP*f' 1f#xtk~ A~ ;:p 48,274,763.74 x. 4.4 ~ 1t&S ~#k 20121¥- 12 JJ 31 E1 ~iYL~ A~ if5 68,121,389.38 JG, .i.Jtrk#*4-, ~~E8~~a•, ~&~~h~~~~•f'E8~~tt*· 4.5 WE*-"*~ 20121¥- 12 JJ 31 l3 ~$Ji;k.J A~ fJ5 1,419,10o,ooo.oo 5t, Jt±-t!t7J x 1~WE*-&OO ~~fi~·· Jt, iti. 2012 if ~ § it~tJWE*-i1f~,~.. $JiA~ fJ5 1,629,760,000.00 12 fJ 31 s iU1ftt'9E*-*~A~ Ff5 1,419,10o,ooo.oo Jt, ~it~1JE8 87%, ~ If : ±~ 7r WE* i1f ~ iU 1ft 473,IOo,ooo.oo 5t , 00 ~ ~ 1-J ~~X 946,000,000.00 jG 0 4.6 oo 5r~1t#x 20121t-12JJ 31l3~$y!;k.JA~if5 110,739,650.44.7t. 4.7 S.1tt~ 20121¥-12 JJ 31 s ~$Ji;kJA~ fJ5 239,156,542.31 Jt, .i.~Jtr.tb?lc .:t#E8.#, I~-~~~~~I-ftE8~~~. 4.8 J}j_~- 20121¥- 12 JJ 31 s ~lY!A ~ if5 22,528.87 .7t, .i. ~Jt t~ JtP*f' JfV ,~,~A. 2012 ~ 12 fJ 31 s *'"$!A~ Ff5 1,985,277.91 Jt, i.J"-.)tll1i'1f#,t .tu ~~, t&A.o 5. ~ Jtjt ,P '(tJflllt {)L . *~mW~-?~~~OO·ff~-~ff~~$, -%~ 108223318310, rp # JJ ~Jto -*.1f.t~Jt-p ;tiJiJJ 10,000,000.00 ~ Jt, 2012 .1¥-.1¥--*JJ*'"-iYi o.oo ~Jt, *~lt.W-*1' 17,368,272.28 ~Jt, .tu ~~,~~)\_ 3,584.26 ~Jij, *1t-1t.R1t 9,691,508.66 ~j(j, ~**'"-$li 7,680,337.88 ~ito 6. *JJt Jt.1ik ~ JiiJt a_ij fig *~~·*·~§*lt.*(-)~00**·~-~~-~Jt~fi ~tt {}L*J. itt{#xtJf A~ Ff5 ~~% o.o2 Jt , jt m-Tit~ 1cJt-tV1 ~at, ;J\ ~ ~~ :itt1.ft.:I!~ ffJ 0 v .Notes to the Financial Statements Notes to the Financial Statements !.Project profile The Loan Agreement of UDHP (Urumqi District Heating Project)was signed in June 8, 2011, and became effective in the same year, the construction of UDHP will be completed in December 31, 2015, Closure of loan account will in December 31, 2015. The proposed project development objective (PDO) is to connect consumers in selected districts of Urumqi City to district heating services with improved energy efficiency and environmental performance. Total estimated cost of UDHP is RMB 2.3 billion Yuan, including the Word Bank Loan of US$ 100 million (R.MB 670 million Yuan), about 30% of total cost. Counterpart funds are RMB 1.63 billion Yuan, about 70% of total cost. There are three components in the UDHP: 1 Component A. Shuimogou District Urumqi CHP Plant District Heating Network (UHN) 2 Component B: Shayibake District CHP Heating Network (SHN) 3 Component C: Institutional Development and Project Management 2 Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of the Urumqi Heating Power Parent Company (Heating Power Parent Company), as well as the Designated Account set in the Autonomous Region Finance Department. 3. Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for the World Bank Financed Project (Caijizi[2000}No.J3) . 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January 1 to December 31. 3.3 The accrual basis and the 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, 2012 of the People's Bank of China, which is USDl= R.MB6.2855 yuan. 4.Notes for the main accounts 4.1 Total Project expenditures The project expenditure in 2012 was RMB 308,469,882.69 yuan, and the cumulative expenditures were RMB 1,212,156,113.01 yuan, which accounted for 53% of the total investment plan. 4.2 Equipment By the end ofDecember 31,2012, the balance was RMB 105,634,015.58 yuan. 4.3 Cash and Bank By the end ofDecember 31,2012, the balance was RMB 385,092,481.56 yuan. And the funds in the Designated Account were converted to RMB 48,274,763.74 yuan. 4.4 Prepaid and Receivable By the end of December 31, 2012, the balance was RMB 68,121,389.38 yuan, mainly the prepayment for the equipments and the input tax, and the internal transfers between the business account of the Heating Power Parent Company. 4.5 Counterpart Funds The balance on December 31, 2012 was RMB 1,419,100,000.00 yuan, which was the free counterpart funds and the domestic bank loans. The total planned counterpart fund of this project was RMB 1, 629,760,000.00 yuan. By the end of 2012, RMB 1,419,100,000.00 yuan of the counterpart funds had been allocated, which accounted for 87% of the plan, including the local level counterpart fund of RMB473,100,000.00 yuan and the domestic bank loan of RMB946,000,000.00 yuan. 4.6 Foriong Loan The balance on December 31,2012 was RMB 110,739,650.44 yuan. 4.7 Payable The balance on December 31, 2012 was RMB 239,156,542.31 yuan, mainly payable to the equipments, engineering and quality assurance deposit of the construction entities. 4.8 Other Payables Its balance on December 31, 2012 was RMB 22,528.87 yuan, mainly interest earned of Designated Account. 4.9 Retained Earnings The balance on December 31, 2012 was lUv1B 1,985,277.91 yuan, mainly interest earned of bank deposit. 5. Designated Account The Designated Account of this project is set in Depository Bank: China Bank Xinjiang Branch SUB, with the account number of 108223318310, and USD account. The initial Deposit of the Special Account is USD 10,000,000. The beginning balance of 2012 was USD 0.00 and the reimbursement in the year was USD 17,368,272.28. This year the interest earned was USD 3,584.26 and the disbursement was USD 9,691,508.66. Thus, the ending balance was USD 7,680,337.88. 6. Other events needed for clarification The balance of Foreign Loan in the Balance Sheet and the Summary of Sources and Uses of Funds by Project Component was 0.02 yuan more than the cumulative withdrawals in Loan Agreement, due to the decimal points carried in calculation of exchange gains and losses.