Guangdong Provincial Audit Office of the People's Republic of China Audit Report *) * Y# # C[2019 ) 140# GUANGDONG AUDIT REPORT C 2019) NO.140 Project Name : Integrated Economic Development of Small Towns (Guangdong) Project Financed by the World Bank R AA : 8161-CN LoanNo. : 8161-CN Project Entity: Provincial Project Management Office of Integrated Economic Development of Small Towns (Guangdong) Project ##kflv f'ig]: 2018 *1A 1 -2019 * 4 f 30 H Accounting Period: January 1, 2018 - April 30, 2019 目录 ContentS 一、审计师意见．.........................................................................................．……1 1 .Auditor&5 OPinion......................................................................................．……3 二、财务报表及财务报表附注．.................................................................．……6 11 .Financial Slatemeflts and Notes to the Financial Staterneflts................．……6 （一）资金平衡表．.....................................................................................．……6 1 .Balance Sheet............................................................................................．……6 （二）项目进度表．.....................................................................................．……8 11.Summary of Sources and Uses ofFunds by Project Component............．……8 （三）贷款协定执行情况表．...................................................................．……10 111 .Statemeni of Implcmentatinn ofLoanAgreement...............................．……10 （四）专用账户报表．...............................................................................．……n iv. Speciai Accouni Statemeni....................................................................．……11 （五）财务报表附注．...............................................................................．……13 v.Notes to the Financial Statements..........................................................．……20 三、审计发现的问题及建议．...................................................................．……28 nl.Audit Findings and Recommendations................................................．……30 一、审计师意见 审计师意见 幼东省农村经济综合开发示范镇建设项目办公室： 我们审计了世界银行贷款幼东省农村经济综合开发示范镇建设项目 2019年4月30日的资金平衡表及截至该日同会计期间的项目进度表、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6页至第27页）。 （一）项目执行单位及幼东省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、项目进度表是你办的责任，编制 贷款协定执行情况表、专用账户报表是广东省财政厅的责任，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。 （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 一1一 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 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。 （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广 东省农村经济综合开发示范镇建设项目2019年4月30日的财务状况及截 至该日同会计期间的财务收支、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幼东省财政厅报送给世界银行的第8161cNol4 至8161CN019号6份提款申请书及所附资料。我们认为，这些资料均符 合贷款协议的要求，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。一 ”攫岁厅 地址：中国幼东省幼州市天河区黄埔大道西361号 邮政簖码：510630 电话：86一20一87078161 传真：86一20一87078201 一2一 1. Auditor's Opinion Auditor's Opinion To Provincial Project Management Office of Integrated Economic Development of Small Towns (Guangdong) Project We have audited the special purpose financial statements from page 6 to page 27 ) of Integrated Economic Development of Small Towns ( Guangdong Project Financed by the World Bank, which comprise the Balance Sheet as of April 30, 2019, 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 Guangdong 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 is the responsibility of your office, while the preparation of the Statement of Implementation of Loan Agreement and the Special Account Statement is the responsibility of Guangdong 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. 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 - 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 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. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Integrated Economic Development of Small Towns (Guangdong) Project Financed by the World Bank as of April 30, 2019, 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 requirements of the project loan agreement. Other Matter We examined the 6 withdrawal applications from 8161CN014 to 8161CN019 and the attached documents submitted to the World Bank by Guangdong Provincial Finance department during the period. In our opinion, the attached documents comply with the project loan agreement and can serve as the 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. Guangdong Provincial Audit Office of the People's Republic of China June ,2019 -4- Address: No. 361, West Huangpu Avenue, Tianhe District, Guangzhou City, Guangdong Province, P.R. China Postcode: 510630 Tel: 86-20-87078161 Fax: 86-20-87078201 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 5 二、财务报表及财务报表附注 11 .Financial Statements and Notes to the Financial Statements （一）资金平衡表 1.BSIanCe Sheet 资金平衡表 BALANCE SHEET 20 19年04月30日 (As ofAPril 30,2019) 项目名称：世界银行贷款幼东省农村经济综合开发示范镇建设项目 Project Name：玩tegrated Economic Developmeni ofsmallT&o wns(Cuangdong)ProjectFinancedby the Wbrld Bank 簖报单位：幼东省农村经济综合开发示范镇建设项目办公室货币单位：人民币元 Prepared by:Provincial Project Management office of Integrated Economic Development of Small Towns(Guangdong)Project cUrren即unit:RMB Yuan 目 后续（Tobecontinue 一6一 � , , , , , , , , , � � � � �� � � I � �а � т � � � � и оо � � � � W � � N � � � � � � � � � � I И � ы .�й '� ы � ~ � • � � W Й �ы � Й N м � ы :� � z v v v v v v v й й ЭФ5 �q � � гГс '" ы � � у �[I ы b v �� � �о � � ,°а� � �� � �� ,� w ,� Wс ы � р� `� � д Э�л •-] а у� р � дп о р 'w О т д � ы FД .Я ы�( � ы•Э� едв �'� � ы � � гffi� �i " Q �°, ,� од � � � д � :� ра w aQ � ,� .'� ,� � '� � � ��о af�a �� ��c3v8a"� �д.� �а � � � ы Q�и f�( и � � р � о � � � 'L=� �( � й .'}� ы � � 4'� � �( `�р �г�8 �н �К�� �ЭEt�i -Чд �х н �1: -� � -� -}- ы N � � � � °о о о °о � � � ы rn ° й й ° о �'� и и v '}1Е � rn й й а °Д рЧ � � � а q � W � N � � � � V О �р V � � р� И l� О N l� 00 ао с� м м р� � b0 о t� и t� t� �..р � и t� и � � ���'ьЭ N N й м N й � � � � v м � ы д о е � сГо а о г� м v и �о � �� z N N N N N N N N ЭФ? .д � �j д h� ы � °,З }� �� р � О ы о ,� у ,� � П� й + j� .1{I w � сд � S а� '� � ы.�i � оыi ы � т U� д z � � ь-7 П р ° � v �1 3 :� Fq � � i� '�`' w р й :� 6 � � '+�i � •р° � �; �N � �( � 4 �° .р � "� ы � � � v .� � b ,о .? р Qa a�oi L�'i ^У�, '� д •� � а� � °�, � й ы 1�[2 .° � w .� й д � ,6gо G �( о �рΡ � ы � ~ '� .� '� � ы '� '� ;� � 4�: .н �д '� 'L=� � 3 гJ °Г�ч' � � ° �, аыi !� ,+�, w ¢� .� ~ д� д� '� �N д � `� а а���$-=й ���исС �х ���i}'iыj��'А'Л`iыi}ЧырлiКи�iд �(д k�н° °��К Эа Э+�� �Iн° �Iw �w �wд�г.й о н � �: '2 � （二）项目进度表 11.Summary of Sources and Uses of Funds by Project Component 项目进度表（一） SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENTI 本期截至2019年04月30日 (For the period ended April 30,2019) 项目名称：世界银行贷款幼东省农村经济综合开发示范镇建设项目 Project Name:Integrated Economic Development ofsmallT&o Wns(Guangdong)ProjectFinanced妙 the Wbrld Bank 簖报单位：幼东省农村经济综合开发示范镇建设项目办公室货币单位：人民币元 Preparedby:Provincial Project Management office of Integrated Economic Development of Small Towns(Guangdong)Project CUJTenCy unit: RMB Yuan 三 一8一 项目进度表（二） SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENTll 本期截至20 19年04月30日 (For the period ended APril 30,2019) 项目名称：世界银行贷款幼东省农村经济综合开发示范镇建设项目 Project Name:Integrated Economic Development ofsmall To认叭s(Guangdong)ProjectFinancedbythewbrldBank 簖报单位：幼东省农村经济综合开发示范镇建设项目办公室货币单位：人民币元 Prepared妙：Provincial Project Management office oflntegrated Economic Development cUrren叮Unit:RMB Yuan 井一州 } 昭匀 } iii. Statement of Implementation of Loan Agreement STATEMENT OF IMPLEMENTATION OF LOAN AGREEMENT *$AA1 2019 * 04 A 30 i (For the period ended April 3 0, 2019 ProjectName: Integrated Economic Development of Small Towns (Guangdong) Project Financed by the World Bank WWI: )-A:"4M*rT - *11: xjtU, K fp t Prepared by: Guangdong Provincial Finance Department Currency Unit: USD/ RMB Yuan eA*Rr19!1q *If ANVA Aitaitt Loan Amount Current-peri d Withdrawals Cumulative Withdrawals Category AtUSD XR #T*,kK ffi ATU **,kKffi USD RNM USD RNM 1. TJM Civil Works 46,110,000.00 22,820,447.10 158,522,332.03 48,400,033.95 325,664,468.43 2. Aft Goods 2,630,000.00 73,219.78 620,043.73 728,451.92 4,901,461.58 3.fM R*RXV11 1,135,000.00 77,540.69 584,740.52 401,615.96 2,702,313.15 Consulting service and training 4.*ftCf$ft - -5,000,000.00 -32,671,000.00 - - Unallocated. part 5JAE* 125,000.00 24,300.00 125,000.00 841,075.00 Front-end-fee TOW 50,000,000.00 17,971,207.57 127,080,416.28 49,655,101.83 334,109,318.16 ( IS ) *}fl JI# #* iv. Special Account Statement SPECIAL ACCOUNT STATEMENT 1 2019 4 04 A 30 lH (For the period ended April 30, 2019) Project Name: Integrated Economic Development of Small Towns (Guangdong) Project Financed by the World Bank 2#j: 8161-CN Loan No. 8161-CN P44e: tu4AT Prepared by: Guangdong Provincial Finance Department Depository Bank: Guangdong Provincial Finance Department *#: 7443501482600000797 Account No. : 7443501482600000797 * f #114: &t Currency: USD Part A-Account Activity for the Current Period Amount Beginning Balance 5,004,996.08 Add: Total Amount Deposited this Period by World Bank 17,971,207.57 Total Interest Earned this Period if Deposited in Special Account 1,782.39 Total Amount Refunded this Period to Cover Ineligible Expenditures Deduct: *MV4,99 Total Amount Withdrawn this Period 22,971,207.57 Total Service Charges this Period if not Included in Above Amount Withdrawn Ending Balance 6,778.47 (Ql9tTo be continued) - 11 - BE: t PffWAV fa Part B-Account Reconciliation Amount 1. IW4&NMMAS Amount advanced by world bank 5,000,000.00 Deduct: 2. ttVT & 9f Total Amount Recovered by World Bank 5,000,000.00 3. * ~ 4#*t Present outstanding amount advanced to the special account at 04/31/2019 0.00 4. VfflWKPMA#f Ending Balance of Special Account 6,778.47 Mtn: Add: 5. #*RK?*04k Amount Claimed but not yet Credited at the End of this Period Application No. Amount 6. **B4fM*ifk4f Amount Withdrawn but not yet Claimed at the End of this Period 7. J*IW*WRR (ut**E5$164t) Cumulative Service Charges (If not Included in Item 5 or 6) Deduct: 6,778.47 Interest Earned (If Included in Special Account) 0.00 Total advanced to special account accounted for at 04/30/2019 -_ 12- （五）财务报表附注 财务报表附注 1．项目概况 世界银行贷款幼东省农村经济综合开发示范镇项目贷款号为 8161一CN，旨在通过该项目的实施，促进示范镇经济社会与环境建设，实 现示范镇包容性增镼与可持续发展；通过示范镇的辐射带动作用，探索建 立小城镇合作发展平台，为全国小城镇健康发展提供良好经验。本项目在 中期调整前涉及7个镇，主要项目内容包括：(1）支持中山市古镇镇灯饰、 花卉苗木产业发展的相关基础设施及机构能力建设；(2）支持汕头市澄海 区东里镇五金制品产业发展的相关基础设施及机构能力建设；(3）支持肇 庆市德庆县悦城镇新型建材、旅游产业发展的相关基础设施及机构能力建 设；(4）支持阳江市阳东县东城镇五金刀具产业发展的相关基础设施及机 构能力建设；(5）支持韶关市乳源县乳城镇旅游、金属制造产业发展的相 关基础设施及机构能力建设；(6）支持梅州市兴宁市福兴镇旅游产业发展 的相关基础设施及机构能力建设；(7）支持云浮市罗定市附城镇电子产业 发展的相关基础设施及机构能力建设。 经过中期调整，世界银行已批准汕头市澄海区东里镇和梅州市兴宁市 福兴镇退出，并将世行贷款资金重新分配给具有世界银行建设基础的韶关 市乳源县乳城镇和河源市东源县仙塘镇。两个镇的主要建设内容包括：(l) 支持韶关市乳源县乳城镇给排水基础设施及机构能力建设；(2）支持河源 市东源县仙塘镇新工业区道路、给排水基础设施及机构能力建设。 《贷款协定》和《项目协定》于2012年08月07日签订，2012年n 月生效，项目关账日为2017年12月31日，中期调整后，项目关账日为 2018年12月31日。项目原计划总投资为人民币675,034,500.00元，其中 一13一 世界银行贷款．悠额为50,000,000.00粎元，折合人民币319,000,000.00元（汇 率按6.38元计）。调整后项目估算总投资为103,555,300.00美元，其中世界 银行贷款50,000,000,00粎元，折合人民币309,500,000.00元（汇率按6.19 元计），占总投资的48.28％。 截至2019年04月30日，项目进度如下： (l）韶关市乳源县乳城镇项目 乳城镇2015年1月至2019年4月完成投资额人民币55,655,535.56元， 提款报账4,556,258.33粎元（全部为二期项目提款），累计完成投资额人民 币115,293,264.11元，累计提款报账11,000,000.00美元。 乳城镇第一期项目采用世行资金的供水管网新建和改造项目、污水管 籑改造项目、培训中心土建工程项目，已完成；生态区发展模式研究编制 工作已完成。采用配套资金的土建工程项目（乳城镇供水厂中控楼及实验 设施）已完成。 乳城镇第二期项目采用世行资金的城区供水及污水管网完善工程已完 工；开发区道路完善工程及开发区供水、污水管网完善工程已完工（未验 收）。供水管籑普查及信．息化系统建设已完成。采用配套资金采购的供水厂 设备已完成。 (2）中山市古镇镇项目 古镇镇2018年1月至2019年4月完成投资额人民币10,614,650.15元， 提款报账l,676,396.59粎元，累计完成投资额人民币82,573,445.43元，累 计提款报账10,050,000.00美元。 土建工程方面，利用世行资金的绿博园河道／水利工程、绿博园道路／ 桥梁、绿博园生物育种实验楼和服务楼已完成；办公设备采购已完成，灯 具快速成型机系统、灯具制造设备已取消；观赏动植物市场信息研究与分 析报告任务大纲、观赏动植物市场信．息研究与分析、灯饰产业集群研究任 一14一 务大纲、灯饰产业集粤研究和提升竞争力战略研究等咨询采购已完成、病 虫害监测与防治服务项目采购已完工。采用配套资金的货物类古镇镇灯具 质量检测设备项目已完成；古镇镇绿博园种质资源保存设备项目、古镇镇 绿博园生物育种／深加工设备项目已取消；观赏动植物育种系统、灯饰研发 任务大纲、温度控制／电线路／节能灯具等研发等咨询采购已取消。 (3）肇庆市德庆县悦城镇项目 悦城镇2015年1月至2019年4月完成投资额人民币36,696,659.07元， 提款报账4,940,704.92粎元，累计完成投资额人民币57,3n,120．巧元，累 计提款报账7,722,565.32美元。 产业转移基地综合服务楼、空调、电梯、室内外电气、办公设备已完 成；悦城镇老街改造工程已完成；悦城老街改造一沿江路环境提升工程已完 成；建材产业集粤发展规划、旅游产业集群发展规划已编制完成；社区参 与计划簖制工作已完成。 (4）阳江市阳东县东城镇项目 东城镇2018年1月至2019年4月完成投资额人民币12,902,193.58元， 提款报账l,950,000.00粎元，累计完成投资额人民币65,3 13,469.29元，累 计提款报账7,950,000.00美元。 东城镇五金产业基地道路新建、扩建和改造项目已完成。五金刀具产 业集粤竞争力研究、东城区域品牌创建行动计划已取消；产业现代化管理 和营销推幼计划已完成。 (5）云浮市籗定市附城街道项目 附城镇2015年1月至2019年4月完成投资额人民币33,410,862.03元， 提款报账4,307,951.89粎元，累计完成投资额人民币43,055,574.75元，累 计提款报账4,932,536.51美元。 附城镇市政配套工程、综合服务楼项目土建工程已完工。货物类项目 中小企业创业基地综合办公楼办公设备（配套资金）已取消。服务类项目 一15一 中小企业产业发展规划（配套资金）已完成。 (6）河源市东源县仙塘镇项目 仙塘镇2018年l月至2019年4月完成投资额人民币45,023,705.11元， 提款报账5,539,865.84粎元，累计完成投资额人民币55,657,193.19元，累 计提款报账s,000,000.00美元。 采用世行资金的仙塘镇工业区道路及配套设施建设工程已完成。采用 配套资金的新型材料制品产业集粤转型升级战略规划、产业转移园新型材 料产业专题报告、新型材料产业跨区产业协作机制研究报告书等咨询采购 已取消。 2．财务报表编制范围 本财务报表的簖制范围包括幼东省世界银行贷款农村经济综合开发示 范镇项目管理办公室（以下简称项目办）、8个镇项目办的财务报表（包括 东里镇和福兴镇）和专用账户报表。 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。 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（备 注：本报告截止日期为2019年4月30日）o 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。 一16一 3.4按照中国人民银行2019年04月30日汇率，即uSD卜人民币 6.7286元。项目进度表（一）中项目总计划额按汇率usD卜人民币6.19 元计。 4．报表科目说明 4.1项目支出 20 15年l月至2019年4月项目共发生支出人民币194,293,644.55元， 其中基础设施发展人民币176,221,09928元，机构能力建设人民币 4,080,%0.75元，项目管理与监测评价人民币576,373 .32元，贷款利息及先 征费人民币6,786,106.86元，汇兑损益人民币6,629,104.37元。截至2019 年04月30日，项目累计共发生支出人民币428,165,559.10元，占总投资计 划的66.80%，其中基础设施发展人民币403,830,863.31元，占总投资计划的 74.28%，机构能力建设人民币6,559,262.29元，占总投资计划的15.99%, 项目管理与监测评价人民币1,390,832.50元，占总投资计划的n .19%，贷 款利息及先征费人民币12,057,088.91元，占总投资计划的75.15%，汇兑 损益人民币4,297,5 12.09元。 4.2货币资金 20 19年04月30日货币资金余额为人民币44,659,650.47元，比上年减 少人民币49,788,291.64元，其中银行存款余额人民币44,665,657.23元，比 上年减少人民币49,797,955.90元；现金余额人民币23,993.24元，比上年 增加人民币9,664.26元。 4.3预付及应收款 20 19年04月30日余额为人民币l,993,195.21元，比上年减少人民币 15,231,3 1 0.31元。其中汕头东里镇余额人民币996,113.31元；兴宁福兴镇 一17一 余额人民币997,084.90元，是省级配套资金在镇项目办的账户余额。 4.4固定资产 20 19年04月30日固定资产原价余额为人民币59,553.00元，累计折旧 余额人民币59,553.00元，固定资产净值余额为人民币0.00元。 4.5项目拨款 2019年04月30日余额为人民币124,157,11474元，其中省级到位的 配套资金人民币64,322,650.74元，市级到位的配套资金人民币0.00元，县 级到位的配套资金人民币59,834,464.00元。 项目计划配套资金总额人民币331,507,305.00元，截至2019年04月 30日到位配套人民币124,157,114.74元，占计划的37.45％。 4.6项目借款 20 19年04月30日余额为人民币334,109,315.16元，其中：世界银行 贷款额为49,655,101.83粎元，折合人民币334,109,315.16元。 截至2019年04月30日，累计提取世界银行贷款资金49,655,101.83 粎元，占贷款总额的9931%，其中，先征费125,000.00美元，折合人民币 541,075.00元；土建工程45,400,033.95美元，折合人民币325,664,465.43 元；货物728451.92粎元，折合人民币4,901,461.58元；培训服务与咨询 401,615.96粎元，折合人民币2,702,313.15元；指定账户0.00美元，折合 人民币0.00元。 4.7应付款 20 19年04月30日余额为人民币16,581,974.55元，比上年减少人民币 5,224,050.37元，其中，中山古镇镇余额为人民币2,503079.94元，是应付 一18一 施工方工程款、投标方的投标保证金、监理单位的工程监理费、设计单位 的设计费等；德庆悦城镇余额为人民币2,482,592.39元，是应付监理单位的 工程监理费、勘察及设计单位的费用等；阳江东城镇余额为人民币 3,242,246.69元，是应付施工方的工程保证金以及监理单位的监理费等；乳 源县乳城镇余额为人民币7,831,004.88元，是应付施工方工程进度款、及 工程保证金等；籗定附城镇余额为人民币466,064.98元，是应付人防费 以及工程保证金等；东源仙塘镇余额为人民币56,9 86.00元，是应付工 程监理费等。 5．专用账户使用情况 本项目专用账户设在中信银行广州越秀支行，账号为 7443501482600000797，币种为粎元。2018年年初余额5,004,996.08美元， 2015年l月至2019年4月回补17,971,207.57美元，利息收入1,782.39美 元，20 18年l月至2019年4月支付22,971,207.57美元，2019年4月30 日余额6,775.47美元。 6．或有事项 德庆悦城镇老街改造工程合同（合同号GD一TJ一Yc一01）竣工后进行财 审，核减金额为人民币3,776,896.67元，施工方对被核减的金额有异议， 已向肇庆仲裁委员会提请仲裁，该申请已于2019年4月17日被受理。若 施工方胜诉，在建工程和应付款科目余额会相应增加人民币3,776,8%.67 元。 一19一 v. Notes to the Financial Statements Notes to the Financial Statements 1. Project Overview The Loan No. of Integrated Economic Development of Small Towns (Guangdong) Project is 8161-CN. Through the implementation of the project, it aims to promote economic, social and enviromnental construction in order to achieve inclusive growth and sustainable development of selected towns. With the radiating effect of selected towns, it will also help establishing cooperation and development platform for small towns, and providing good experience for other small towns of the nation. The project involves 7 towns, the main contents are as follows: ( I ) supporting associated infrastructure construction and institutional capacity building for lighting industry as well as flower and plant industry of Guzhen Town, Zhongshan City; ( 2 ) supporting associated infrastructure construction and institutional capacity building for hardware products industry of Dongli Town, Chenghai District, Shantou City; ( 3 ) supporting associated infrastructure construction and institutional capacity building for new building materials industry and tourism industry of Yuecheng Town, Deqing County, Zhaoqing City; ( 4 ) supporting associated infrastructure construction and institutional capacity building for hardware cutting tools industry of Dongcheng Town, Yangdong County, Yangjiang City; ( 5 ) supporting associated infrastructure construction and institutional capacity building for tourism industry and metal manufacturing industry of Rucheng Town, Ruyuan County, Shaoguan City; ( 6 ) supporting associated infrastructure construction and institutional capacity building for tourism industry of Fuxing Town, Xingning City, Meizhou City; ( 7 ) supporting associated infrastructure construction and institutional capacity building for electronic industry of Fucheng Town, Luoding City, Yunfu City. After the mid-terin amendment in June 2015, Dongli Town, Chenghai District, Shantou City and Fuxing Town, Xingning City, Meizhou City had officially withdrawn from the project, the World Bank agreed to reallocate the loan to Rucheng town, Ruyuan countyShaoguan City which are the existing users of the loan and the newly selected Xiantang Town, Dongyuan County, Heyuan City.The main construction contents of the two towns are as follows: ( 1 ) supporting associated infrastructure construction for water supply and drainage and institutional capacity building of Rucheng Town, Ruyuan County, Shaoguan City; ( 2 ) supporting the construction of roads in the new industrial district and associated infrastructure for water supply and drainage -20- as well as institutional capacity building of Xiantang Town,Dongyuan County,Heyuan City. Loan Agreement and Project Agreement were signed in August 2012, and became effective in November 2012. The closing date is December 31, 2017, the adjusted closing date was December 31, 2018. Estimated total investment of the project is RMB675,034,500.00 yuan, among which the World Bank loan is USD50,000,000.00, equivalent to RMB319,000,000.00 yuan. ( at a rate of USD1=RMB6.38 yuan ) The adjusted total investment was USD103,555,300.00, among which the World Bank loan is USD50,000,000.00, equivalent to RMB309,500,000.00 yuan (at a rate of USD1=RMB6.19 yuan) accounting for 48.28% of the total investment. By April 30, 2019, the progress of the towns was as follows: (1) Rucheng Town, Ruyuan County, Shaoguan City The investment from January 2018 to April 2019 was RMB 55,658,538.86 yuan, the withdrawal was USD 4,556,258.33 ( The second phase withdrawal ) , total accumulated investment was RMB 118,293,264.11 yuan, accumulated withdrawal was USD 11,000,000.00. The civil work financed by World Bank had all been done. The water supply pipelines, sewage pipe network improvement and the training center construction were finished; The eco-zone development pattern research had been completed. The construction of the civil work financed by the counterpart fund ( Rucheng Town water supply plant central control building and experimental facilities ) were done. The bid and tender for the second phase civil work financed by the world bank loan had been finished, among which the urban sewage pipeline network improvement work were done; the water supply network improvement, the water supply for the economic development zone, the improvement of the sewage pipeline network had been done without acceptance. Rucheng Town urban water supply pipe network and census information system construction project financed by the counterpart fund were done. The counterpart-funded equipments for the water supply plant had been procured. - 21 (2) Guzhen Town ,Zhongshan City The investment from January 2018 to April 2019 was RMB 10,614,650.15 yuan, the withdrawal was USD 1,676,396.59, total accumulated investment was RMB 82,573,445.43 yuan, accumulated withdrawal was USD10,050,000.00. For civil works, the civil work for Green Garden river / water conservancy, Green Garden Road / bridge construction were completed; the construction project of laboratory building and service building of Guzhen Green and Bio-breeding Park were done. Office equipment had been procured. The lamp rapid prototyping system equipment procurement and lamp manufacturing equipment procurement had been cancelled. Pest and disease monitoring and control services procurement had been completed. The research and analysis of the market for the appreciation animals and plants, the lamp industrial cluster research and competitiveness elevation strategic research are all completed. Guzhen Town lamp detecting facilities procurement classified as goods procurement using counterpart fund had been completed. Germplasm resources conservation equipment for Guzhen Green and Bio-breeding Park, the biological breeding / deep-processing equipment for Guzhen Green and Bio-breeding Park, the breeding equipment for the appreciation animals and plants, the lighting research outline and the temperature control/electrical circuit/energy-saving lights research had been cancelled. (3) Yuecheng Town,Deqing County,Zhaoqing City The investment from January 2018 to April 2019 was RMB36,696,659.07 yuan, the withdrawal was USD 4,940,704.92, total accumulated investment was RMB 57,311,120.15yuan, accumulated withdrawal was USD7,722,565.32. The construction of the office building and related equipments such as the air-conditioners, elevators in Industry Transformation Base had finished. The construction of the project of upgrading old streets in Yuecheng Town were done. The material industry cluster and the tourism cluster development plans were finished. The community engagement plan had been done - 22- ( 4 ) Dongcheng Town,Yangdong County,Yangjiang City The investment from January 2018 to April 2019 was RMB 12,902,193.58 yuan, the withdrawal was USD 1,950,000.00, total accumulated investment was RMB 68,313,469.29 yuan, accumulated withdrawal was USD 7,950,000.00. The construction, expansion and renovation of roads in Dongcheng Town Hardware Industry Base and the construction had finished. The competitiveness analysis for the hardware industry cluster and the buidling of brand for the eastern city had been cancelled. The industry modernization management and promotion plan, financed by the counterpart fund were done. ( 5 ) Fucheng Town, Luoding City, Yunfu City The investment from January 2018 to April 2019 was RMB 33,410,862.03 yuan, the withdrawal was USD 4,307,981.89, total accumulated investment was RMB 43,055,874.75yuan, accumulated withdrawal was USD4,932,536.51. The construction of the municipality auxiliary project and the comprehensive service building had been finished. The procurement of the the equipment for small and medium enterprises base office ( counterpart fund ) were cancelled. The development plan for small and medium enterprises business ( counterpart fund) were done. (6) Xiantang Town, Dongyuan County, Heyuan City The investment from January 2018 to April 2019 was RMB 45,023,705.11 yuan, the withdrawal was USD 5,539,865.84, total accumulated investment was RMB 58,657,193.19 yuan, accumulated withdrawal was USD8,000,000.00. The construction of the roads and auxiliary projects of the industrial area of Xiantang County had been done. The strategic plan for the upgrade of the new material indsutry cluster, the special report on new materials for the industrial transfer zone and the research report of the inter-regional collaborative mechanism of the new material industry cluster had all been canceled (counterpart fund) . 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements - 23 - of the Provincial Project Management Office (Provincial PMO for short) and 8 project offices of town level ( including Dongli and Fuxing county ) , as well as the Special Account Statement set in the Guangdong Provincial 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.13) . 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January 1 to December 31 (Note: This report period ends at April 30, 2019) . 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 April 30, 2019 of the People's Bank of China, which is USD1= RMB6.7286 yuan. The exchange rate adopted for the planned amount of World Bank loan in Summary of Sources and Uses of Funds by Project Component was USD1= RMB6.19 yuan. 4. Explanation of Subjects 4.1 Project Expenditures Total project expenditure in 2017 was RMB194,293,644.58 yuan from January 2018 to April 2019, including the infrastructure development expenditures was RMB176,221,099.28 yuan, the institutional capacity building expenditures were RMB4,080,960.75 yuan, the project management and supervision expenditures were RMB6,629,104.37 yuan. By end of April 30, 2019, the project cumulative expenditures were RMB428,165,559.10 yuan, which accounted for 66.80% of the total investment plan, there into the infrastructure development expenditures was RMB403,830,863.31 yuan, which accounted for 74,28% of the total investment plan, the institutional capacity building expenditures was RMB6,589,262,29yuan, which accounted for 18.99% of the total investment plan, the project management and supervision expenditures was RMB1,390,832.50 yuan, which accounted for - 24- 11.19% of the total investment plan, the loan interests and front-end fee was RMB12,057,088.91 yuan, which accounted for 75.15% of the total investment plan, exchange gains and losses was RMB4,297,512.09 yuan. 4.2 Cash and Bank On April 30, 2019, the balance was RMEB 44,689,650.47 yuan with a decrease of RMB49,788,291.64 compared with that of last year, among which the balance of cash at bank was RMB 44,665,657.23 yuan, with a decrease of RMB 49,797,955.90 yuan from last year; The balance of Cash was RMB 23,993.24 yuan, with a decrease of RMB 9,664.26 yuan from last year. 4.3 Prepaid and Receivable The balance on April 30, 2019 was RMB1,993,198.21 yuan, with an decrease of RMB 15,231,310.31yuan from last year. Among which the balance of Dongli was RMB 996,113.31 yuan and Fuxing was RMB 997,084.90, which were the balance of the provincial counterpart fund. 4.4 Fixed Assets The balance on April 30, 2019 was RMB59,553.00 yuan, the cost of the fixed assets was RMBO.00 yuan, the accumulated depreciation was RMB59,553.00 yuan. 4.5 Project appropriation funds The balance on April 30, 2019 was RMB 124,157,114.74 yuan, which consisted of the counterpart funds from the province amounted to RMB 64,322,650.74 yuan and from city of RMBO.00 yuan , the county of RMB 59,834,464.00yuan. The planned counterpart funds of the whole project were RMB 331,507,305.00 yuan. By the end of April 30, 2019, the ready-for-use total of the counterpart funds was RMB 124,157,114.74 yuan, accounting for 37.45% of the total plan. 4.6 Project Loan The balance on April 30, 2019 was RMB 334,109,318.16 yuan, among the World Bank loan was USD 49,655,101.83, equivalent to RMB - 25 334,109,318.16 yuan. By the end of April 30, 2019, accumulated USD 49,655,101.83 of the World Bank loan had been withdrawn, accounting for 99.31% of the total amount, among which the front-end fee was USD125,000.00, equivalent to RMB841,075.00 yuan, building project was USD48,400,033.95, equivalent to RMB325,664,468.43 yuan, Inventory was USD728451.92, equivalent to RMB4,901,461.58 yuan, training services and consultant was USD401,615.96, equivalent to RIMB2,702,313.15 yuan, special account was USD 0.00, equivalent to RMBO.00 yuan. 4.7 Payable The balance on April 30, 2019 was RMB16,581,974.88 yuan, with a decrease of RMB5,224,050.37 yuan from last year, the balance of Guzhen was RMB2,503079.94 yuan, which was the payable of civil work, the bidding security, supervision and design. The balance of Yuecheng was RMB2,482,592.39 yuan, which was the payable of supervision, survey and desgin. The balance of Dongcheng was RMB 3,242,246.69 yuan, which was the payable of bidding security and supervision. The balance of Rucheng was RMB7,831,004.88 yuan, which was progress payments and the payable of the bidding security. The balance of Fucheng was RMB466,064.98 yuan, which was the civil air defense and the payable of the bidding security. The balance of Xiantang was RMB56,986.00 yuan, which was the the payable of supervision. 5. Special Account The Special Account of this project is set in Guangzhou Yuexiu Subbranch, China CITIC Bank, with the account number of 7443501482600000797, and USD as currency Unit. The beginning balance of 2018 was USD5,004,996.08. the reimbursement from January 2018 to April 2019 was USD17,971,207.57 and USD 1,782.39 of interest was earned during this period, the disbursement was USD22,971,207.57, the ending balance was USD6,778.47 on April 30, 2019. 6. Other Explanation for the Financial Statements -26- After the examination of the contract price carried out by the local finance department , the upgrade engineering works of the old streets ( Contract No.GD-TJ-YC-01 ) had been priced down by RMB 3,776,896.67 yuan, this had raised objection from the contractor and an arbitration had been submitted to Zhaoqing Arbitration Committee, which had been accepted on April 17, 2019. If the contractor wins, the Construction in Progress and Total Payables accounts would be increased by an amount of RMB 3,776,896.67 yuan. 27