Audit Office of Inner Mongolia Autonomous Region of the People's Republic of China Audit Report r Yff # [2016] 002-# AUDIT REPORT [2016] No.002 Project Name: Bayannaoer Water Reclamation and Environment Protection Project Financed by the. World Bank : 8047-CN Loan No.: 8047-CN Project Entity: Hetao Water Affairs Group Co., Ltd. of Bayannaoer City SW4: 2015 Accounting Year: 2015 Contents f† ! ru, ... .................................. .. .... .................... 1 .A uditor's Opinion .........., .............................................. 3 I .Financial Staternents and Notes to the Financial Statements............5 ( - ) k A ........... ...................................................5 i.Balance Sheet . .......................................... 5 ( ) k ........................................................... . . 7 ii.Summary of Sources and Uses of Funds by Project Component..........7 ( . ) † . ti 1 K ................................... . .......11 iii.Staternent of Implementation of Loan Agreement .................... I l ( k9 ) - )f 5 $ j! .................... ................................. .......12 iv. Special Account Statement........................................................... 12 ( a ) k fflLkMt ........................................................ 13 v. Notes to the Financial Stateinents ...........................16 , C $99 ] O -IX .................... .............................19 II1. Audit Findings and Recommendations.................................23 一、审计师意见 审计师意见 巴彦淖尔市水环境综合治理项目领导小组办公室： 我们审计了世界银行贷款巴彦淖尔市水环境综合治理项目 2015年12月31日的资金平衡表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5页至第18页）。 （一）项目执行单位及内蒙古自治区财政厅对财务报表的贡任 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内蒙古自治区财政厅 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，土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哈当性和作出会计估针一的合理性，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 计意见提供了基石纸 （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、会计制度和本项目贷款协定的要求编制，公允反映了世界 银行贷款巴彦淖尔市水环境综合治理项目20巧年12月31日的财务 状况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 我们审查了本期内由内蒙古自治区财政厅报送给世行的第10 号至第14号提款申请书及所附资料。我们认为，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和审计发现的问题及建议。 中一矛… 地址：中国内蒙古自治区呼和浩特市大学东街116号－ 邮政簖码：01002。 电话：86一0471一6634918 传真：86一0471一6634651 I Auditor's Opinion Auditor's Opinion To the Leading Group Office of World Bank linanced Bayannaoer Water Reclamation and Environment Protection Project We have audited the special purpose financial statements (from page 5 to page 18) of the World Bank Financed Inner Mongoli a Bayannaoer Water Reclamation and Environment Protection Project, which comprise the Balance Sheet as of December 31, 2015, the Summary 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. Project Entity and the Finance Department of Inner Mongolia Autonomous Region's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and Uses of Funds by Project Component, 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 Inner Mongolia Autonomous Region, which includes: i. Preparing and fair presenting the accompanying financial staternents in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement; ii. Designing, implementing arid maintaining necessary internal control to ensure that the financial statements are free from material misstatement 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 mi sistate i-nent. 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 ClUe to fraud or error. In making those risk assessments, the auditor considers internal 3 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. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, the financial position of Bayannaoer Water Reclamation and Environment Protection Project financed by the World Bank as of December 31, 2015, its financial receipts and disbursements, the project implementation and the receipts and disbursements of special account for the period 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 app i cation from No.10 to No. 14 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 Opinio r h ore parts hereinafter: Financial Statements and Notes to tl tements, Audit Findings and Recommendations. Audit Offi eS i ongolia Autonom gion, China Jun P, 32016 Address: No.116, East Ring of University Avenue Huhhot, Inner Mongolia, China Post Code: 0 10020 Telephone: 86- 0471-6634918 Fax: 86-0471.-6634651 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 Statenents i. Balance Shect BALANCE SIIEET 2015 4 12 1 31 H (As of December 31, 2015) Project Name: iayannaoer Water Redamatiar and Environmnt Proteci Project Financed by the World Hank 004 44 S b O s$: 4f - T:' : fL irepared by: ltao Water Affairs Group Co. i.Io[Bayanmuocr City5 Currency Uni: RMB Yuan Linc HealIineI Line Begin:IIig Filding Apýplicaitil of VIuni l nding LeIeLC Scurces nf Fund N. 1 3aianec Nu, Halanec launce -. i¯H +t lomtal, . 20 105,920,355.00 181,776,355.00 Pi,jCct lsped~r Te.1 i , o p paton unds i t M 29 Aemt Traec Caia arnd0apital Sups 2 ib a cý, cý, cý. cý, ýD cý, W W W C> c, lp cý C> CD CD C) c:, C) CD C> W, w C) C2 cý, C:ý C> l=ý es w cýý Cý cs C:5 .2 CS cS cý, cý cp, CD CD 5 4ý4 c dý, L-, 3 I -, ýi, <,i CJ (9v) -mwp&Åf iv. Special Account Statement SPECIAL ACCOUNT STATEMENT j4 1 i 2015 - 12 ¯ 31 H (For the period ended December 31, 2015 Project Name: Bayannaoer Waler Reclamationand Environment Depository Bank: Accounthina Everbright Protection ProjecFinanced by the World Bank Bank, Hohhot Branch iK V: 8047-CN 45: 50121488000000949 Loan No. 8047-CN Account No,: 501 21488000000949 Prepared by: The Financial Department of Inner Mongolia Autonornous Region Currency: USD A 91: M #]PK Ai$ Part A-Account Activily for the Current Period Amount Ån)4j8 Beginning LIalance 3,851,346-35 Yp: Add: 44. t1 [] $3 Total Amour Deposited tiis Period by ADB 12,767,323.12 *Mt4] xi tti t ( À #1r f 1.542.32 Total Interes( Earned this Period if Deposited in Special Account 54{-¯64-¯ ffi 0 0ii Toltal A mount Refunded this Period to Cover Incligible Expenditures 4.C: Deduct: Total Amount Withdrawn this Period ,11,615,348,98 4444 yXÉ 44144 4 lo Total Service Charges this Period if not 30.00 Included in Above Amott Wilhdrawn F$¾ Ending Balance 5,004,832.81 B 3 : -t » T,&-]P Part B-Account Reconciliation k0 Amount 1. n oiink Amount Advanced by ADB 5,000,000.00 41i#: Deduct. 2, tk¶fMtlE 4¯4 d14 Total A mount Recovered by ADB 3. * 4 /,$-kRR-*r$ t47K Oatstanding Anount Advanced to the Special 5000,000.00 Account at the End of this Period 4. trflQKP W3 ffi Filding Balance ofSpecial Account 5,004,832.81 ii Add: 5. 44413*4.1441 E 1431411f1t >4[0] 11'iŽ4 Anount Claimned butr not yet Credited at the End ofthis Period 44 Ä 4444 AppticationNo Amoont 6. M.4Ä _l, :. 4 t4 - i( å3 tf i4 <4, kR Amount Withdrawn but not yet Claimed at the End of this Period 7. & %- kH : i s( p 5' 64 t ‡ Cun ulative Service Charges ( f not 120.00 InIClded in Ttem 5 or 6) arges (If not 120.00 ;AJ,>: Deduct: 8. J ( -.I l -X r P P- ) Interest Earned (If Included in Special Account) 4,952.81 9. 44 41 - OV P _M 1. r - ? 4$ t Total Advance to the Special Account 5,000,000.00 Accounted for at the End ofthis Period 944j- $41f'3±je *414 ( 1 The notes are integral parts oftlie financial sucments) 12 （五）财务报表附注 财务报表附注 1．项目情况 巴彦淖尔市水环境综合治理项目贷款号8047一CN：项目建设将 从根本上治理内蒙古河套灌区各级排干沟、乌梁素海和黄河水生态 环境的水质污染，通过采取建设污水处理厂及再生水回用等有效措 施控制乌梁素海的外源污染和减少内源污染，建立完善的水质预警 系统，有效保护乌梁素海、河套灌区和黄河水生态环境。同时项目 实施可对巴彦淖尔市的水资源进行优化配置，合理开发再生水资 源，并且通过深度加工蒙古国的煤、铜等矿产资源，促进国际区域 经济合作，达glJ经济发展与环境保护双赢目的。项目贷款协定于 2011年7月29日签订，2011年功月27日生效，预计20]7年12月 31日前关闭。项目原计划总投资l,094,000,000元，，其中利用世行 贷款80,000,000粎元，折合人民币532,000,000元（按项目资金申请 报告批复汇率1:6,6541)，国内配套资金562,000,000元。2015年8月， 项目进行了中期调整，调整后项目总投资852,910,00。元，其中利用 世行贷款8。，00几00。粎元，折合人民币489,390,000元（按项目中期 调整报告）：国内配套资金363,520,000元。 2，财务报表编制范围 本财务报表的簖制范围包括巴彦淖尔市河套水务集团有限公司 的则务报表及内蒙古自治区财政厅专用账户报表。 3．主要会计政策 3.1本项目则务报表按照财政部《世界银行贷款项目会计核算办 法》（财际字〔200。）13号）的要求编制。 3.2会计核算年度采用公历年制，即公历每年1月1日至12月 31日。 3.3本项目会计核算“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、 l3 3.4按照中国人民银行2015年泛月31日汇率，即usD卜人民 币6 .4936元。 4．报表科目说明 4.1项目支出 2015年项目支出人民币9],399,215,17.46元，累计支出人民币 568,495,753.29元，占总投资计划的66.65％。 4.2货币资金 2015年12月3！日货币资金余额为人民币43,852,772.34元，比 期初增加人民币12,953,995.78元。 4.3预付及应收款 20]5年12月31日余额为人民币23,717,909.30元，主要是乌拉 特中旗、乌拉特后旗两个再生水工程、鸟梁素海网格水道工程及乌梁 素海生态过渡带人工湼地工程预付工程款。 4.4项目拨款 2015年］2月31日余额为人民币181,776,355元，其中中央及自 治区到位的配套资金163,8邸，000元，市财政配套资金6,56仇。00元， 巴彦淖尔市水务局6,480,000元，鸟拉特后旗财政局4,870,355元。 项目计划配套资金总额人民币186,176,355元，截止2015年12 月31日到位配套资金人民币181,776,355元，占．悠计划的97.64%, 其中中央财政环保项目专项资金50,600，。00元，累计到位人民币 48,60。，000元，占计划的96.050,0；中央节能预算内投资20,000,000 元，累计到位人民币20,00认000元，占计划的100%；中央基建投资 预算拨款42,000，即。元，累计到位人民币40，。00,000元，占计划的 95.24%；自治区财政2015年水污染防治专项资金54,7j6,000元，累 计到位人民币义，716,000元，占计划的100%；自治区排污费环境保 护专项资金3,45。，000元，累计到位人民币3,050,000元，占计划的 88.4]%；巴彦淖尔市水务局补助资金6,48认000元，累计到位人民币 6产8(),000元，占计划的100%；市财政拨付项目管理费及利息补助 4，。6。，000元，已全部到位；乌拉特后旗财政局税费返还4,870,355元， 14 已全部到位。 4.5项目借款 截止2015年12月引日巴彦淖尔市水环境综合治理项目账面余 额为人民币268,(25,755.43元，其中国际复兴开发银行贷款额（不含 专用账户）为人民币219,]25,755.43元；国内借款49,000,000元。 截止2015年12月31日，累计提取世界银行贷款资金 38,749刀322粎元，占贷款总额的48.44%，提取工程类资金 33,280,059.01粎元，占该类计划的61.06%，提取咨询费464,821.40 粎元，占该类计划的24.46%，专用账户余额为5,004,832.81美元；累 计国内借款人民币99,00。，000元，占总计划的90,00％。 4.6应付款 2015年12月31日余额为人民币12,854,1 13.36元，主要是项目 借款及三个污水处理厂、两个再生水厂及乌梁素海网格水道扣留质保 金部分。 5．专用账户使用情况 本项目专用账户设在光大银行，账号为50121488000000949，币 种为粎元。专用账户首次存款5,00仪000.00美元。2015年年初余额 熟851,346.35粎元，本年度服务费支出3。美元，利息收入1,542.32美 元，提款］2,767乃23，陀粎元，支付11,615,34898美元，年末余额 5,004,832．只1美元。 15 v . Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview Bayannaoer Water Reclamation and Environment Protection Project (Ln.8047) is airned to the treatment of the water pollution in drains of Inner Mongolia Iletao Irrigation Area as well as that in Wuliangsu Lake, and prevents the water ecological environment of Yellow River from pollution. The project also aimed to establish a complete early warning systern of water quality to protect the water ecological environment of Wulangsu Lake, Inner Mongolia Hetao Irrigation Area and Yellow River effectively. Besides, -the implementation of this project could also optimize the water resources and exploit the reclaimed water resources of Bayannaoer rationally, as well as promote international and regional economic cooperation through the deep processing of the mineral resources (such as coal and copper) of Mongolia, to achieve the goal of win-win situation such as economic development and environmental protection. The Project Agreement was signed on July 29, 2011, came into force on October 27,, 20 11, and it will be completed on December 3 1, 2017. The total investment of the prqject is RNM852.91 million yuan, of which USD80 million is World Bank Loan, which is equal to RMB532 million yuan according to the exchange rate of the Fund Application Report (1:6.6541), and the other RM13320.91 million yuan is domestic counterpart funds. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial. statements covers the einanciat statements prepared by the project office of Hetao Water Affairs Group Co., Ltd. of Bayannaoer City, and the Special Account Statement prepared by Inner Mongolia Finance Department. 3. Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for World Bank Financed Project (Caij1zi[2000]No.l3). 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year frorn January Ito December 3 1. 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 16 exchange rate on December 31,2015 of the People's Bank of China, which is USD 1= RMB6.4936 yuan. 4. Illustration of Statement Items 4.1 Project Expenditure The project expenditure on year 2015 was RMB91,399,215.17.46 yuan, accumulated outlay of RMB568,495,753.29 yuan, which was 66.65% of the total investment. 4.2 Monetary Capital The balance of monetary capital was RMB43,852,772.34 yuan until December 31, 2015, RMB 12,953,995.78 yuan increased than last year. 4.3 Advance Payment and Receivables Until December 31, 2015, the balance was RMB23,717,909.30 yuan, mainly prepaid project payment, consists of main work of the Ganqimaodu Reclaimed Water Project, Wulatehouqi Reclaimed Water Project, the Constructed Wetlands, Non-point Pollution Control Pilot and Canalization of Wuliangsu Lake. 4.4 Project Appropriation Founds Until December 31, 2015, the balance of Project Appropriation Funds was RMB 181,776,355 yuan, of which the counterpart fund from national government and the Inner Mongolia Autonomous Region was RMBI63,866,000 yuan, the counterpart fund from the Municipal Government was RMB6,560,000 yuan, the counterpart fund from the Municipal Water Affairs Bureau was RMB6,480,000 yuan, the counterpart fund from the Finance Bureau of Wulatehouqi was RMB4,870,355 yuan. The anticipated total counterpart fund was RMBl86,176,355 yuan on 2015. Among which there is RMB 181,776,355 yuan was up and running, equal to 97.64% of the total counterpart funds until December 31, 2015, including RMB50,600,000 yuan special funds for environmental protection project of Central Environment Protection (accumulated Appropriation Funds RMB48,600,000 yuan, equal to 96.05% of plan), RMB20,000,000 yuan funds for energy saving budget investment of Central Government (accumulated Appropriation Funds RMB20,000,000 yuan, equal to 100% of plan), RMB42,000,000 yuan funds for construction investment budget allocations of Central Government (accumulated Appropriation Funds RMB40,000,000 yuan, equal to 95.24% of plan), RMB54,716,000 yuan Special fhnds for water pollution prevention and control of Inner Mongolia Autonomous Region (accumulated Appropriation Funds RMB54,716,000 yuan, equal to 100% of plan), RMB3,450,000 yuan Special funds for pollution discharge from Inner Mongolia Autonomous Region (accumulated Appropriation Funds RMB3,050,000 yuan, equal to 88.41% of plan),RMB6,480,000 17 yuan special subsidies from Bayannaoer Water Affairs Bureau,(accumulated Appropriation Funds RMB6,480,000 yuan, equal to 88.41% of plan), RMB4,060,000 yuan project management fees and interest subsidy from the Municipal Financial Department, RMB4,870,355 yuan refunds of taxes from Wulatehouqi Finance Bureau. 4.5 Project Loan Until December 31, 2015, the balance of Bayannaoer Water Reclamation and Environment Protection Project was RMB268,125,755.43 yuan, which consists of RMB219,125,755.43 yuan of IBRD Loan (excluding special account) and RMB49,000,000 yuan of Domestic Loan. Until December 31, 2015, accumulated withdraw funds from World Bank Loan was USD38,749,713.22, equal to 48.44% of the total loan amount. Among which there was USD33,280,059.01 used for engineering, equal to6l.06% of plan of such type, and USD464,821.40 for consulting service, equal to 24.46% of plan of such type, the balance of the special account is USD5,004,832.81; Accumulated domestic loan is RMB99,000,000 yuan, it was 90.00%of the general plan. 4.6 Account Payable Until December 31, 2015, the balance is RMB12,854,113.36 yuan, is mainly consists of project loan and the retained quality assurance fund of the three wastewater treatment plant, the two reclaimed water treatment plant, and the Canalization of Wuliangsu Lake. 5. Service Conditions of the Specified Account The special account of the project is located in the China Everbright Bank, with account number of 50121488000000949, currency is U.S. dollars. The first deposit of the Special Account was USD5,000,000.00. At the beginning of year 2015, the balance is USD3,851,346.35, the withdraw funds is USD12,767,323.12, the payment is USD11,615,348.98. Among which there are USD30.00 service fee and USDI,542.32 interest. Until December 31,2015, the balance is USD5,004,832.81. is