Audit Service Center of China Nationa] Audit Office for Foreign Loan and Assistance Projects it & l=t Audit Report 'ifl -7~~* (2013) 43 % AUDIT REPORT ( 20 13) N0.43 ~m~• = ±*~m£~••~oo~-~~ff~=~~~~~~ Project Name: Dioxins Reduction from the Pulp and Paper Industry Project Granted by GEF ~ t~ %: TF011 898 Grant No.: TFO I1898 Project Entity: Foreign Economic Cooperation Office, Minjstry of Environmental Protection · Accounting Period: forom the Beginning of Demonstration Enterprises Activities to December 31, 2012 ~ *- Contents $it~rp;f-J;\!, ......................................................................................... 1 I. Auditor's Opinion .....................................................................................4 :=. , 9!t 3!-ili*&M ~1~* ~t7i ................................................................. 7 ll . Financial Statements and Notes to the Financial Statements ................ 7 (-) ~~f~-*'. ............................................................................... 7 i. Balance Sheet. ........... ........ ....................................................... .. ........ 7 ( :::... ) :gJt § Jl!:JJt*-................................................................................ 9 ii. Summary of Sources and Uses of Funds by Project Component.. ... 9 ( ~ ) ~$X t1J- Jt tJtA"J ·t~ ?Jt*· ............................................................ 11 iii . Statement of Implementation of Grant Agreement.. ...................... ll ( tzg ) 1t )fJ *p ~* . ........................................... ............................ 12 iv. Special Account Statement.. ............................... .............. .............. 12 ( Ji ) J1!t .3}- fli * ~ft 7i ......................................................................... 13 v. Notes to the Financial Statements ......... ... ......................... ..... ..... .... 16 -' 'rfJitk~Ef-1 fPJ~,&}ti)t .................................................................. l9 Ill. Audit Findings and Recommendations ............................................... 20 ftffi$*1~~~~£~•-~oo~~~~fi~ =~ ~~~~§ 2012 .if- 12 JJ 3 1 s if-)* ~-lfl-{;j -*:.& ~ ~ ij( s ~ Jtij f~ if-) J.Vi § Jtt!!k' !i!W #X ~~~fi•~-~~m•P~*•#~§if-JM~~*&~~-~m~(• 7 9f ~1ft 18 9f ). -~~~M~--~if-J*•+•*·~m*~*···~~~fi-~ *~~~~if-J~*'~~~m*?~*~M~~oo~~if-J~*,~#~* -@~iS : I. ~~~00~~**~.~~~~~*~§·-~~~¥~~~* ~~ 9114J-ifi;&, #~!t~~-0-)tffi.ll}t; 2. ~*· ~fi~-¥~¥~~$~~, ~~~§M~**~#~~ -~ -~ :PX {tr ~ w-* ~ ~ i: *itr tiL -r ~ffi~~~~~~fi.~I~~£~~~M~-·~--~-~.ft m~~~oooo*•#~~~oo~•~~~if-J~~~fi1.#I~,~~~ ~~*~ffi·~-#~~¥~~*~~~fi$#I~~~~§M~-*~ .~- f. 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Auditor's Opinion Auditor's Opinion To Foreign Economic Cooperation Office of Ministry of Environmental Protection We have audited the special purpose financial statements (from Page 7 to Page 18) of Dioxins Reduction from the Pulp and Paper Industry Project Granted by GEF, 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 Grant Agreement and the Special Account Statement for the period then ended, and Notes to the Financial Statements. Project Entity and the International Department of Ministry of Finance 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 Grant Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of the International Department ofMinistry ofFinance, 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 enor. Auditor's Responsibility Our responsibility is to express an opinion on these fmancial 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, inc1uding the assessment of the risks of 4 ... mate rial misstatement of the financial statements, whether due to fraud or cn·or. In malGng 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 c iTcctiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the Teasonableness of accmmting estimates made by management, as well as evaluating the overall r rcsentation of the financial statements. We believe that the audit evidence we have obtained is appropriate and su rticient to provide a basis for our audit opinion. Opinion . In our opinion, the financial statements identified in the .first p aragraph present fairl y, in all material respects, financial position of Dioxins Reduction from the Pulp and Paper Industry Project Granted by GEF as of December 31 , 2012, 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 rcq u i rements of the project grant agreement. Other Matters We also examined the withdrawal application No.1 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. In addition, we ]earned that Yueyang Woods Paper Joint Stock Company (one or lo ur demonstration enterprises) has appliedto exit in May, 2013, because th<.: technique adjustment scheme does not meet the technical requirements of IIH: project. And Foreign Economic Cooperation Office of Ministry of · Fnvironmental Protection has started the screening and evaluation procedures or 1al Cash and Bank I Hlfiff,~ 9 0.00 12,758,052.00 C·a~h in Bank il "I: !;·R]~l(?.f+M\ lncludmg: Specinl Account 10 0.00 12,571,000 00 2 ~~~ II 0.00 0.00 1 j',tsh ~n lland 114' fiM·l .&JIIL!&~~i.f 12 0.00 0.00 I otJI Prcpa1d and Rece1vable I1 , 1/!1 It ~U'c-frif· 13 0.00 I OIHI rixed Assets 0.00 7 MW~ ~:&fi"ffl tr~ JUJ~~ Beginning Applica tion of F und Line No. Ending Ba lance Balance fM ~ ~ rZ fui ffr' 14 0.00 Fixed Assets Co~t 0.00 i£: JJht1/fiU Y 15 0.00 Less: Accumulated D~reciation 0.00 l'lil ;g ~ F frl'ili 16 0.00 Fixed Assets Net 0.00 WJ:E ~ ~m~ 17 0.00 Fixed Assets Pendmg D1sposal 0.00 ffl ! ~~ffl-Q-it Total A....!!Q_Iication of Funds . 147,905,955.69 - 511 , II 0,000.00 147,905,955.69 28.94% l. ;r-1Q:1't:!lk-~~~ti":ltlti aJfftt;.tttllHiJ-t-li~~"tlt 18! axit. - 147,456,068.69 - 464,668.400.00 147,456,06&.69 31.73% BAT/BEP lnvesbnent m PartiCipating M1lls 2.i;Q$1HHflilgj~~~r:!lk-~~~t11:ff illlittJ . Nt111onal Action Plan for Sector-Wide R~ication 209,906.00 - 16,153,600.00 209.906.00 1.30'Yo 3.l1Uf-'=i'i'f#i . 166,054.00 - 7,572,000.00 I66,054.00 2. 19% Monitoring and Evaluation - 4.l9i B'l!'Jll . ProJect Management 73,927.00 - 22,716,000.00 73,927.00 0.33% ;?2}f Difference - 4,599,275.41 - - 4,599,275.41 - I.J§il&~~it Change in Receivables - - - . . . - 2.1§1{-f"W\~{.t Change m Payables - (8, 158,776 59) (8, 158,776.59) - 3.11iifi~~~{t· Change in Cash and Bank - 12,758,052.00 - - 12,758.052.00 - 4.)tit!!. Other . - - - - - 9 J:Yi \3 :Iittt*: ( .::. ) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT IT #WJ~~: 20121f- 12}] 31 B (For the Period Ended December 31 ,20 12) 16~•=~-~~a•~•~oo•••~ff~~-~-~~6 ~~-'if:TFOII898 >roject Name: Dioxins Reduction from the Pulp and Paper Industry ProJect Grant No · TFO I 1898 Granted by GEF l&.ft: ~~-~-~~§¥~#~~~~ ~ ij5 J¥!.19:: ~ ~ ifijt !ntity Name: Foreign Economic Cooperation Office, Ministry of Environment Protection Currency Unn. R.Vf.B Yuan J9lf§!:XI±l Project Expenditure B3't1t~rz: ~t&.m~§5[ ~EI~:# ~#-~ill As~ets T r ansferred tEllI~ w ~tl:lfi~ Project Componen t C umulative mLZ;IJ~f'L x~~f'= ~~JiF Work in Const ruction Investments ffi'l~Jtf'L Amount C urrent In tangible Deferred Progress E xpen ditures Transferred-out F ixed Asset Asset Asset Asset to be disp osed L7J'm1E~ -~~~itn.":L~'ft-ey iT~ ~IJU it~ :l5t ;:1; ~" .J:St ~ C5{ ~ 147,456,068.69 134,426,339.7-l 13,029,728.95 3ATIBEP Investment in 'articipating Mills U,tiijiiJIJ#11Ez9J~:MHi~ -~~~ fttrz>IJ ~t~l 209,906.00 209,906.00 \ational Action Plan for )ector-Wtde ReplJcatJon ,. L~'8 5iW1i5 166,054.00 166,054.00 'v1onitoring and Evaluation +.J9i 1:1 ~a~ Project Management 73.927.00 73,927.00 3-~t . 147,905,955.69 134,426,339.74 13,479,615.95 10 ( -:::) ~ ~u~~F~;;i _. 1-8 J:A til' K. ~... • ~ :1"~ iii. Statement of Implementation of Grant Agreement ~ ffk tb- ~ iJL fi STATEI\r1ENT OF IMPLEMENTATION OF GRANT AGREEMENT 'tt ~ * *M~:f. 2012 ~ 12 }J 31 E1 (For the Period Ended December 31 ,20 12) Ji: f!l .t *: ~~tr-Jt£*Jt~ Deduct: *M~N.~~ Total amount wtthdrawn o.oo I WJ~~Wi(2012/ 1 2/31) Ending balance(Dec.3 1,20 12) 2,ooo.ooo.oo I s '!W7t: ~m9!~,~ im ·,; * Part B-Account Reconciliation 1. l!HY·«'Hff-t 1f~X lD· Wi Amount advanced by World Bank 2,000,000.00 ~:1> Deduct: I 2. 1!tJHfHriEI!& .~WI 0.00 Total amount recovered by World Bank 3. *:WH!1t~11 m~f' rox.ft-~rPW! 2,000,000.0 Outstanding amount advanced to the Special Account at Dec.3 1,2012 4. -{fJ'HJ!l(P.M;K~WJ C20 12/l2/3 l ) 2,000,000.00 End balance of Spccia I Account at Dec.31,20 12 lr.)}JO add: 5. :fJX.~*JtJlM~ B i1tW4~Y!IHf!ft;1-*@J1r~~ 0.00 Amount claimed but not yet credited at month/day/year Ellw~~ ~i9! Application No. Amount 6. i£~-*WHVJ-*B.*:11illf.!U-*$i~H~Ja(~i! 0.00 Amount withdrawn but yet clauned ~:1> deduct: i 7. . f1J.@.l&A C.ffA ~ fiH*F gf!7}) 0.00 Interest earned (if included in Special Account) 8. :c$:AAM~~fHY1li:f' n'?j(.ff:~Y4J-Wl 2,000,000.00 Total advance to Special Account accounted al Dec.31,20 12 I ,., I. JjJ § £-* ·~-~ I] -i-~~±J;j(If~£~R1 #X~ 00 ~~jj(:I~j~fj- jf .::.~ ~~~F~ § , ~ It}! I I~!\~' Ax ldJ- i~ -f 2012 ~ 5 JJ 25 E riJ 00 ~~~~:7f ~l&.rr C Jt1 {~itt~1&.1i") ~ 'I' rr A ~ #{P OO.ootjf~-$ C~~Mif!z~ >#~~:f . Jlliif!z-$ .!§ If~t'f*¥~~ C f8f m r!" '+ f~~ -~ ) ~i- ~ ~ tJJ-t~, ~:!l1Jrd? $lf~t-l*t? m~~_g-.1t r:r ~~, c r~ ~~:ff N t:Js ;.r 1~~1t r:p ~~, ) ~ • ~ ffiX Et'9 1~Jf1 , 1t J!3fP .1\i1f, 11'1* -Ni3 xt ~~%1t ~ ~~, I 20121f. 6 J] 25 S ~ g!L~;Ffe;~jf~l-T~Ji~~*"Wi~ . ~ § it~~#t*'~' ·,~Il l 'J.] 8100 7i !cit ( t]f% A~ FP 51111 7i 5G ), ;jt. ~ : 9& #~itt~ 1500 7i ~fG, ' '11'. -~~-t- 6Goo 7i ~.:lt. *~ EJ § ;f;t-.*J~rt~m-t~~*~~J~:i!~~r ff Jl-=-~ ·)~ 9·~~~~ "lt1i. PJ1j{t;l{dl1ilfJ.t~ N&" ( BAT/BEP ) IF re: ~:it' X# 9=' 00 ~~ ·.i· iJ,~AII 0'~ -lf:M1i"#Jit~ 1J, #t #J4-1i" jfh!IJfJ ' 10C1i. PJrr4t-*hl1i.l1'~~ l®." . ,,;, 11 P-J ~i:. ~~MtV. -"Fim$71- : c 1) 1±1ZY*-~f*~$JJ~:i!~rtV.x.:7t:*j\ ( I·:CF) :1~ s .I~ 1#1~ ~ 1g ~ iG~i\if S .I.!:, ~ _; 1*1~ .::. ~~~F~!c ( 2) 1~;,., ;J~tJ f 1 'lY .::. ~ ~~*IF ~ 1t :c)J it ~~J ; C3 ) xt 1Z9 .tz ~ jf ~ .£ ~ ~ ~ 1tJ5 ~ ·tf ~ 11 i1 H~ ;L 1~ ~. JA.rmxt-=-~~~lJf, Jl<.~~*~~l;l_&~~~~Jt:Ittrr:; fl., ,. f,~ , Jf: ¥J--tf:rl-1'-4A1iMxtJYr§:itt1i".lli1f-~it1tm#J; C4 ) If'f*~xt~~ ,·/' ff , , ,, ~,xt~ § JJ--1*1tl:f5ftl:7f Jl*m#m;b . 2. ~i+~n)JY!tl 2. I *~ § JJ1:t :9J-liL~j3( ~ Jikhr~-$ ((itt Jill&.11" ~$X~ §I 4: it~~ 1r 5! »(Jilt p)•'{' [ 2000 J 13 % ) ~!I >Jt~ #JJJ . 2.2 ~~it *-~WtzJt~4:.~Jj}J1., *JfJ1if~iEJi1lUi, tV.A~ fJJ ~iE!*-* (,; ,,,. 2.1 1~ it1flt*JfJ ~\JJJ 1fiM, ~P fA.1> J3J~1f- JJ - s ~£. -t .::. JJ .=. -t- - 11 11 ,t, WHit~:%-it!WrSJ.n 13 JFfE:~jfff~~~ME~FmrJt~~ 2o121f 12 Jl \ I II . Jt ~: f¥j T {}! jf}N:17};fr P&.~\. ffJ JYi § f!t~!W fiiJ ~ 2007 .1f ~ 2012 .1f I 2 ) I 3 I u ' IZ9) II ~ ~;f«j ~~ Jh fr ~ jt{:f:% iiJ ' -$- ~B *~*~ 1g Pl ~\. iiJ {P 9=' ./~ '( ·l'l ?It 'lV )1~171 ~ PR/~\. SJ 3 */'-'\. SJ iiX-*:ftEJ fiiJ :lt8.79 2011 ~ ~ 2012 1f 12 JJ 31 I I . q, (*f.I~ :Xf7~%1'f~ ~~'ffi.Ji!rif!z$00~iff] -tJfJJ*,P ~:W£-4i-tJ!t.:t:lta.*J 20121f I'J 13 if1tx1tf~~1tft-J:iC¢ 1 ~ft=A~ fJJ 6.31 Jtj~, :!t~fiL;&:J$J *JfJ 20121f. !2 fJ 31 E :/[$, &p 1 ~Jt=A~ $ 6.2855 .ft . 3. **~*u~rE 3. 1 *~ § ff,JifffJ!t?*-*:ri1Jltif.k$1!l~ff-SJ~tL 3.2 *1t'H1t~i&*~~Jfe:IE~M- : -ffi-~B;ff-~~J&17t1=r~~~b'-Sl , WJT-~A~ 17! 1I r~ ~~ fiJ , ~m J'' ~>ifi~ii% t~ £ 1I rrtt 110 SJ ~ !f '~~-tv~~ 1tM17J-1I ret 0 €J 4 * ~ 7F 1£- Jt I' tit;& n ~.&If-f*-$ 1~11-11: ~ ~~, ft-J :r_w § .rot 4!-*-*.&fllt jfJc-$ oo rffi SJ fig -t 0 m If'[;%-$ ;xt 1~ 11-1t t:p ,~, ffi_ ~ ;xt*fl.' %-7F ~ 1£-i: .& Jilt jfj(-$ 00 ~~~ fi] ~m•~'~*~•*fir~. -13--**•fi~*~ft·~~*ff,J•~tl, ~ ~~~~ 1t. 4.{- JfJ .!*? {tJtHt 1t *~§{-Jfl*?~~~~oo~~*~· Jt?~~!f~•rr~rr~~•. YJl(:% 1 111 on4s2Goooo7959 , Ffi # .n ~JG, 11:ff#x < &p %J ~~~It) JJ 2oo E ~Jt. 2012 .if 11 J] i!tJf-.1i~1t~ JfJJi*,P ~ ~~ 2,000,000.00 ~.Jt, -* M.:t l±lYa o.oo ~.ft, !f-*~~Ja 2,ooo,ooo.oo ~Jt . sAIL*:#§ i}t aJJ 5.1 ~ § .:t l±l 5.1.1 ~~ 20 12 .if 12 J] 3 1 E, ~ § J.- it.:t liLA. ~$ 147,905,955.69 Jt, s :IJi § ft~ ~~-~ ff,J 29.84%. ;it t:p : ~ ~1£-i:-=- ~*~~~ "Jfk1i PJff it!'Kilfk 1ilf:tt~lli"~*~:itA~ $ 147,456,068.69 Jt ; ~~J##ti9J~~1i1t-=-~ *~~pfi;/Jit~IJA ~ rp 209,906.00 Jt; ~-i}Jij if-ft A~ rp 166,054.00 Jt; l_W§~JIA~$ 73,927.00 .7C. 5.1.2 3t 1t1~JfJ ~ r:lf.:-~A ~ $ Jt, 71 WI 134,426,339.74 -r ~ i:JR~* ~0~~~~~3(#ff,J-=-·~ -~~' -~~~·· 5.2 ~$*1t ~ ~ 20 12 1f. 12 A 31 8 , Jffi § ~ $ *~:?K~A ~ $ 12,758,052.00 7G, Jtt:p : ~JfJJi*?.ff#:X:lf.:-~ 2,ooo,ooo.oo ~)G, ~Jf%A~ $ 12,571 ,000.00 Jt. 5.3 ~A.~ffiX ~~ 2012 5f 12 JJ 31 8, =0Y § y~jU Y&ffiX 2,ooo,ooo.oo ~7G, ~Jf%A~ $ 12,571 ,000.00 Jt. 5.4 lJj(. **i:- 14 tl~ ·'c 20121f- 12 JJs , wc,**i:-l- itiU1iA~ fl5 139,934,231.10 Jt , 31 1' 11'. t !f ~it~~J,~-.tY!~ 33.60%. *"f: lfi1'c$xf:9~~1t'f~~,WC.*i?f~A~ 1 1 1 ' ,,, '~ 5 0,000 .00 .:7G; WJ 9 ;fJ! ~M:~ff ~~VL.''- §] fjC,-*ifi:-A ~ rp 126,450,502.15 jG; 'I' i {r' ~ .ftJt~Jr}R1)}1f~l;L>-'-fiJ r5c-*~i:-A~ FjJ 1,304,187.95 Jt; -&-~A#.tltl~~B­ (1 Jlf~ 'l~ fiJ A ~ $ 50o,ooo.oo Jt; IZ!1 Jll4:- 4~ ~~ JB ~ Pl ~ 1± 0- fiJ A ~ $ II , 129,541.00 Jt. }f1iE ·tt ~i}t aJJ * (>. n~ v,~- rffi g1 ~ ~ t~ iJ., t!h-r:W g] txA~- iT 13 c20 12 1f- 5 JJ 25 13 ) ntr ~ 20 1 1 :, (l n 1s 13 ~ -@-#-~ m Ji)! 1lT J.ff ~.t. 1t. 15 v. Notes to the Financial Statements Notes to the Financial Statements l. Introduction of the project The Global Environment Facility Grant Agreement of Dioxins Reduction from the Pulp and Paper Industry in China (therefore abbr. GA) was signed by the International Bank for Reconstruction and Development ( therefore abbr. WB ) with the Ministry ofFinance, People's Republic of China (therefore abbr. MOF) on May 25, 2012. An implementation agreement was signed between MOF and the Ministry of Environmental Protection (therefore abbr. MEP) to cause Foreign Economic Cooperation Office (therefore abbr. FECO) of MEP to be responsible for the use, management and supervision of the grant. Performance-based Financing Agreements were signed between FECO and four non-wood pulp and paper mills on June 25, 20 12 . Th~ total cost of the project is USD 81 ,000,000.00 (amounted to RMB 511,110,000.00 yuan) , with USD 15,000,000.00 grant from GEF and USD 66,000,000.00 of co-financing. The objectives of the project are to (a) demonstrate the result of BAT/BEP adoption in four selected non-wood pulp rrrills; and (b) to support China to develop its long-te1m action plan to guide the promotion of a sector-wide BAT/BEP adoption. The project has four components: (1) BAT/BEP investment in participation mills: this component will support adoption of BAT/B EP in the four selected non-wood pulp mills by replacing the current elemental chlorine-based bleaching process by the elemental chlorine-free (ECF) process in order to minimize releases of dioxins and furans; (2) National action plan for sector-wide replication; (3) monitoring and evaluation: this component will can-y out independent verification of baseline and sample results at the four mills to quantify reduction of dioxin releases as well as water quality parameters and water savings achieved. And project monitoring and evaluation activities will be carried out during the course of project implementation; (4) project management: this component will support provision of technical assistance to improve capacity ofFECO to manage the implementation of the project. 2. Accounting principle 2.1 The financial statements was prepared in accordance with the Accounting Principle of the World B ank L oan Project (Caijizi [2000] 13) from the Ministry of Finance. 2.2 Accounting transaction adopt the debit/credit double entry bookkeeping system on accrual basis. Currency unit for accounting is RMB. 2.3 Accounting period is the Gregmian calendar, which is from January 1 to December 31. Financial Statement for the current accounting period is from beginning of the BAT/B EP investment activities of the four demonstration enterprises to the date of December 31 , 20 12. Among all the four project en terprises, accounting period of Nanning Sugar Industry Co., Ltd is from 2007 16 ''' I k rL· mber 3 I, 20 12; accounting period of the other three project enterprises, """'l h .I in fu Paper Industry Co., Ltd. of Leshan City, Yueyang Woods Paper 1 1111 tl '-.• m.: k Company, MCC Meili Paper Industry Co., Ltd. are from 20 ll to I> n 'l'llthrr 11, 20 12; accounting period for FECO and MOF are the Greg01ian l':1k11d:11 year 20 t2. l I l'lll'l'xchange rate selected by the Project Appraisal Document (PAD) (I IS I> I RMB 6.31) was regarded as the available exchange rate in the "' "'"111:11 y of Sources and Uses of Funds when calculating the total project cost .111d IIIL' c' '" responsible for the accuracy of the summarized figures rather than \' IIIli p11'l'' ' individual financial s tatement, however, each entlty has the rt·•.porl'l rhliily for the authenticity and integrity of financial reports. ·'- " u f t'' to th e applicati on of Sp ecial Account IIH· '-llL'L'tal account of the project which managed by the International I kp.111111cnl of MOF was set up in the CITIC Bank of China. The account 1111111IH·r 1s 711 1011482600007959 and currency unit is USD. The first '' 1thdraw0,, 4>'\5.69 yuan accounting for 29.84% of the total project cost, among '' llr r ll till' payouts for BAT/BEP investment in participating mjlls is RMB I 17,.1\(,,OM\.69 yuan, national action plan for sector-wide replication is RMB 20<) •10c1 00 yuan, monitoring and evaluation is RMB 166,054.00 yuan and proJl'\ 1 lllilnagement is RMB 73,927.00 yuan . .., I ..l I Ill· amount of the transferred fixed assets is RMB 134,426,339.74 yuan, "l11d1 "' the Chlorine dioxide equipment and Bleaching system etc. of the N :11111111 ~· · '-'"!'ilr Industry Co., Ltd. " ) < ·, ,.,1, .llld Bank ' " u l I )n. l·mher 31, 2012, Cash and Bank accounts RMB 12,758,052.00 yuan, 17 including the tum-over fund USD 2,000,000.00, approximately RMB 12,571,000.00 yuan. 5.3 Grant As of December 31, 2012, the accumulated grant received is USD 2,000,000.00, approximately RMB 12,571,000.00 yuan. 5.4 Co-financing fund As of December 31, 2012, the accumulated co-financing fund received is RMB 139,934,231.10 yt~an accounting for 33.60% of the total co-fmancing. Including: Co-financing fund received by FECO is RMB 550,000.00 yuan; co-financing fund received by Nanning Sugar Industry Co., Ltd. is RMB 126,450,502.15 yuan; co-financing fund received by MCC Meili Paper Industry Co., Ltd. is RMB 1,304,187.95 yuan; co-financing fund received by Yueyang Woods Paper Joint Stock Company is RMB 500,000.00 yuan; And co-fmancing fund received by Jinfu Paper Industry Co., Ltd. ofLeshan City is RMB 11,129,541.00 yuan. 6. Others Eligible Expenditures on or after June 18, 20 ll and prior to the date of the GA (May 25, 2012) can be retrospectively recorded as grant expenditure according to the GA. 18