30 JUN 2018 P MA489 Audit Service Center of China National Audit Office for Foreign Loan and Assistance Projects Audit Report W P4A (2018) 22 -- AUDIT REPORT (2018) NO. 22 Project Name: GEF Mainstreaming Integrated Water and Environment Management Project V At : TF0A2428 Grant No.: TF0A2428 Project Entity: Foreign Economic Cooperation Office, Ministry of Environmental Protection #iI'Y1N: 2016 49 A 29 H i2017 4 12 A 31 1 Accounting Period: September 29, 2016 - December 31, 2017 目录 ContentS 一、审计师意见．,.．…，二，.,.,..．……，.．……，．…，...........................................．……1 1 .Anditor&sopinion........．……，.,,...．……，..............．……，二，....................．……3 二、财务报表及财务报表附注．.．……，，……，二，…，.....．……，..............．……，二，二5 11 .Financial Statemems and Notes to the Financial Statemellts........．……，5 （一）资金平衡表二，.............................．……，........................．……，．……5 1 .Balance Sheet.,.．…，．…，二，.．…，…，,,.,............．……，.,.．……，.,.,,,.．……，．……，.5 （二）项目进度表．．…，…，．…。．,...........．……，二，.,．·，·，····，····，··，····，·········……6 11.Summary of Sources and Uses ofFunds by Project ComPonent.．…6 （三）赠款协定执行情况表……，.................................................．……8 111 .statement of Ilnplementation ofGrantAgreement二，...．……，.....．……8 （四）专用账户收支表．....．……，......．·．．·．··················，················，····……9 iv. SpecialAccountstatement.．…，.................................................．……，9 （五）财务报表附注．....．……，,，…，............................................．……，二10 v.Notes to the Financial Statement，……，........．……，.,,.,................．……，13 三、审计发现的问题及建议…，.,.,.．…，.,.．…，............．……，.，…，．……，....．……16 nl.Audit Findings and Recon卫刀endations ........................................．……17 一、审计师意见 审计师意见 环境保护部环境保护对外合作中心： 我们审计了全球环境基金赠款水资源与水环境综合管理主流化项目 2017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、赠款协 定执行情况明细表和专用账户收支表等特定目的财务报表及财务报表附注 （第5页至第15页）。 （一）项目执行单位对财务报表的责任 簖制上述财务报表是你单位的责任，这种责任包括： 1．按照中国的会计准则、会计制度和本项目赠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 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、 1 会计制度和本项目赠款协定的要求簖制，公允反映了全球环境基金赠款水 资源与水环境综合管理主流化项目2017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 我们还审查了本期内报送给世界银行的第1、2号提款申请书及所附资 料。我们认为，这些资料均符合赠款协议的要求，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。 审计籲国夕典援款项澎＿审蜘舞务中心 粉乡 地址：中国北京市中关村南大街4号 邮政簖码：100086 电话：86一10一62 150750 2 Auditor's Opinion Auditor's Opinion To Foreign Economic Cooperation Office, Ministry of Environmental Protection We have audited the special purpose financial statements (from Page 5 to Page15) of GEF Mainstreaming Integrated Water and Environment Management Project, which comprise the Balance Sheet as of December 31, 2017, 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's Responsibility for the Financial Statements Your entity is responsible for the preparation of the financial statements mentioned above, which include: 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 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 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 entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, b-ut not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Am 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. 3 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 GEF Mainstreaming Integrated Water and Environment Management Project as of December 31, 2017, 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 grant agreement. Other Matter We also examined the withdrawal application No.1, 2 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. 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. Audit Service4 nterof Chiink donal Audit Office for Foreign Loan rd Assistance Poj cts June 28 , 2018 4 Address: No. 4 Zhoigguancun South Avenue, Beijing, P.R.China Postcode: 100086 Tel.: 86-10-62150750 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 3A Ar BALANCE SHEET 2017 4 12 AJ 31 E (As of December 31, 2017) 4k: .-47 A.Ak tT-q-: TF0A2428 Name of the Project: GEF Mainstreaming Integrated Water and Environment Grant No.: TF0A2428 Management Project 9, 4A t - E- I1:4 %t4 Y k 't ht* 'Q T4 ,KfR Entity Name: Foreign Economic Cooperation Office, Ministry of Environmental Protection Sorcs ie Beginning Ending Application of Fund Line B g Sources of Fund Line No. Balance Balance No. Balance Balance Total Project 1 0.00 268,567,63 k Ait 15 0.00 0.00 Expenditure Counterpart Fund Fixed Assets Transferred 2 0.00 0.00 4it 16 0.00 2,552,442.00 Total Grant Construction Expenditure 3 0.00 0.00 o 17 0.00 3,214.29 to be Disposed Total Payable 3. 0L &V ,*Pt A-i Investments 4 0.00 0.00 Other Payable 18 0.00 0.00 Transferred-out O 4.4 0 1-395 0.00 268,567,63 '19 0,00 0.00 Construction in Progress Other Fund Equipment 6 0.00 0.00 Retained 20 0.00 0.00 Earnings Including: Equipment 7 0.00 0.00 Losses in Suspense Total Cash and Bank 8 0.00 2,287,088.66 CAh inBk 9 0.00 2,287,088.66 Cash in Bank Including: Special 10 0.00 2,287,088.66 Account 1 s on H11 0.00 0.00 Cash on Hand Et fli kRA &&it Total Prepaid and 12 0.00 0.00 Receivable 'H )I5 -A.t13 0.00 0.00 Total Fixed Assets 3 0 0.00 Total Application of 14 0.00 2,555,656.29 Total Sources of 21 0.00 2,555,656.29 Fund Fund 5 � о л�° о лрΡ а а*p° орΡ о а О �р Q С] О � О О S � '� у 'О [� � � С С � г ы © о� оо о © о а о � __ "� � � �° � � � � � �� � � �у с � � ?� � � � ы г,�.у *�' -°?, �,уΡ� °�' 'с � ,�, sr д� а � � т .с � sпг °� � _� ''� О "д'.` р �� а,,. л�У;, ei �.� ы и _ �' ® �+д � � w W� � ��� �,�� �-����� .�.�� y�уΡ� � Ф сСΡ т � V V kk�� О О �С и цц � � � ы � т d�I � � "� � � � .�+ д � � °'' � � � ?� 2� � 1�С` � � р � 2 � а � :� � � - st� � °J '�, �t � �G � � :�' '� = � и� � 0 L � � � , С � � � С�7 � � :� w � г�'�г � „'�^ о т 111 .5 � � д ,д�ц,, � � 1Е' � � �г�г .{ � ° w � � а -� е3 � '� Е � -г�к? `�' � � � 'W` �'+ 'l� �, Э-rК �01 � `'� � W � Е- � С7 1 � i-+ - � W ni Г� � � гп .� v '-` � ..; гч м � и ..w .r 4 � �, � ��� � й а� � 3 3 i i i � � � �� � � р С�39 �а��� �'н � � F � -� � � о . � -{р� _о L '�? 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'�j' У� � � �ь.+ ,-з � � I�. �д� tŭ � •°' � � �, -д�К+,, � tz� � •� flл а � � � �"Т `� h # +ле .Я U � ,� f1 # 0°п .D � � � � �` � � �, р�� z � д° � 5р •,'-., в. U, �� дь од •� с. V`�д' v� � � г� �' �� � гk� w_ ы � � `� �`i�f •• �_ w � � � $ .� � }� .nf� +� i?� а' .а �' C7 'б ^ � �i���CL1 "цц:д "`�гL3 � � � �гт�- �-� � � � � � 41� � ... .� ...� ..� (29) *)fi JEP k3t;* iv. Special Account Statement -*)fl)kp k3t;* SPECIAL ACCOUNT STATEMENT 03F 2017 * 12 A 31 H (For the period ended December 31, 2017) 1 A 4't - 4 it i-':q )I -k N R * i R 4 * 9, * i -6a- V 31 A iu 3 P I r R i a f L I-T, -k a Oi t* 3 _ ff Project Name: GEF Mainstreaming Integrated Water and Depository Bank: China Minsheng Banking Environment Management Project Cooperation, Beijing Finance Street Branch. Mk-q-: TFOA2428 11-: 697933122 WK447: Account No: 697933122 Prepared by-, Foreign Economic Cooperation Office, Ministry of Environmental Protection * H (item) LVq (Amount) A 1.3 -. *Mi )fl AK,6 tjr'* A Part A-Account Activity for the period (2016/9/29) Beginning balance(Sep,29, 2016) 0.00 Vhp add: 0.00 *At -Tr- lffl 4F 1k -K) Total amount deposited by World Bank 390,628.08 * A fil 11K 10, 0 ( 4 x _Vfl k P t 3)_ ) 23.16 Total interest earned this period if deposited in Special Account *_ A T 4.3 ' LB 93 4 It 0.00 Total amount refunded to cover ineligible expenditures A O Deduct: 0.00 Total amount withdrawn 40,633.08 Total interest transferred out of the Special Account 0.00 Aq*+,J(20l7/l2/31) Ending balance(Dec,31,2017) 350,018.16 B 43 - Part B-Account Reconciliation 1. tF -Jkff Amount advanced by World Bank 350,000.00 A O Deduct: 0.00 2, -91 iRff 9 Total amount recovered by World Bank 0.00 3.*AA AO -6 k4g#$A 350,000-00 Outstanding amount advanced to the Special Account at Dec/31/2017 4.-tMPk,PAq*+V (2017/12/31) End balance of Special Account at 350,018.16 Dec,31,2017 4 V add: 0,00 5. 0t]F*MAJ*E, *i44KKVE_f A*Mt 4- M) Amount claimed butnotyet credited atDec,31,2017, Application No .4 g 0.00 Amount 6. Ot I f A ig 4R;Kk .9) 0.00 Amount withdrawn but yet claimed 7. AR * R, it - LB ( 0 *,9- t 5 fu 6 # 3 5.00 Accumulative service charges (if not included in item 5.or 6.) k deduct: 0.00 8 - '114 4" X ( 4 Pk P 10 3 23.16 Interest earned (if included in Special Account) 9. *AAq*-:M k P -& k4g*sn 350,000.00 Total advance to Special Account accounted for at Dec,31,2017 9 （五）财务报表附注 财务报表附注 1，项目基本情况 项目全称为全球环境基金赠款水资源与水环境综合管理主流化 项目。项目赠款协议于2016年9月29日由国际复兴开发银行（简称 “世界银行，&）与财政部共同签籲。根据财政部与环境保护部（简称“环 保部”）签籲的赠款执行协议，环境保护部环境保护对外合作中心（简 称“环保部对外合作中心，,）负责赠款的使用、管理和监督。该项目目 标为在项目区域内提高水分生产率，减少污染排放，并将创新性的水 资源与水环境管理综合方法推幼到流入渤海的三大流域。项目主要活 动包括：水资源与水环境综合管理创新方法主流化模式研究、海河流 域水资源与水环境综合管理示范、在海河、辽河、黄河三个流域推广 水资源与水环境综合管理方法以及机构能力建设和项目管理。项目计 划资金总额10450万粎元，包括赠款资金950万美元和承诺配套资金 9500万粎元。其中环保部赠款资金为475万美元，配套资金为4,781.7 万粎元。项目关账日为2021年12月31日。 2．会计核算原则 2.1本项目财务报表按照财政部《全球环境基金赠款管理办法》 （财国合〔2017)33号）和《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。 2.2本项目确认收支的原则为以实际收到的赠款收入确认为项目 收入，以实际发生的赠款支出确认为项目支出。采用借贷记账法进行 核算。记账本位币为美元。 2.3会计年度采用公历年制，即从公历每年1月1日起至12月 31日止。本期报表会计期间为项目协议签署日即2016年9月29日 至2017年12月31日。 2.4本项目财务报表采用的汇率说明：项目进度表2一1中项目总 计划额折算汇率采用世行项目评估文件中选择的汇率1美元二人民币 6.40元；其余报表折算采用的年末汇率为2017年12月29日汇率， 即1粎元＝人民币6.5342元。 3．报表编制范围 10 3.1本项目的专用账户报表由环保部对外合作中心编制。 3,2本期财务报表簖制范围包括：环保部对外合作中心、承德项 目办的项目财务报表及专用账户报表。环保部对外合作中心负责对本 级、地方项目办及专用账户报表数据进行汇总，各报表单位对本单位 提供报表的真实性、完整性负责。 4，专用账户使用情况 本项目专用账户由环保部对外合作中心管理，账户于2016年7 月13日开立，账户设在民生银行北京金融街支行，账号697933 122, 币种为粎元。2017年世界银行拨付首存款（即周转金额度）为 350,000.00粎元。专用账户期初余额0.00美元，本期世界银行回补总 额390,628.08粎元，本期利息收入23.16美元，本期支出40,633.08 粎元，本期利息支出。．00粎元，期末余额350,018.16美元。 5．报表科目说明 5.1项目支出 截至2017年12月31日，本期项目支出合计人民币268,567.63 元，累计项目支出人民币268,567.63元。其中：水资源与水环境综合 管理方法主流化本期支出人民币0.00元，累计支出人民币0.00元； 海河流域水资源和水环境综合管理示范本期支出人民币0.00元，累 计支出人民币0.00元；海河、黄河、辽河三大流域推广水资源和水 环境综合管理模式本期支出人民币0.00元，累计支出人民币0.00元； 机构能力建设与项目管理本期支出人民币268,567.63元，累计支出人 民币268,567.63元。 5.2货币资金 截至2017年12月31日，项目货币资金余额人民币2,287,088.66 元，其中：专用账户存款余额350,018.16美元，折合人民币2,287,088.66 元。 5.3拨入赠款 截至2以7年12月31日，项目累计收到赠款390,628刀8美元， 折合人民币2,552,442.00元。 5,4应付款合计期末余额为人民币3,214.29元，包括环保部对外 合作中心垫付未回补资金人民币451.00元，环保部对外合作中心本 11 期回补收到的粎元金额与人民币支出之间的差异产生的汇兑损益人 民币2,611,96元，专用账户本期产生的利息人民币收入1 51 .33元。 6．其他情况说明：本报表配套资金仅反映现金配套部分。 l2 v. Notes to the Financial Statement Notes to the Financial Statements 1. Introduction of the Project The project is GEF Mainstreaming Integrated Water and Environment Management Project. The Grant Agreement of GEF Mainstreaming Integrated Water and Envirom-nent Management Project (therefore abbr. GA) was signed by the International Bank for Reconstruction and Development (therefore abbr. WB) with the Ministry of Finance, People's Republic of China (therefore abbr. MOF) on September 29, 2016. 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. The objectives of the project are to increase water productivity and reduce pollution discharges in the project areas to mainstream and scale up an innovative approach to integrated water and environmental management in the three river basins entering the Bohai Sea. The main activities of the project include: Mainstreaming of Innovative Approach on Integrated Water and Envirom-nent Management, Demonstration in Hai Basin on the Integrated Water and Environment Management Approach, Scaling up the Integrated Water and Environment Management Approach in Three River Basins, Institutional Capacity Building and Project Management. The total cost of the project is USD 104,500,000.00 with USD 9,500,000.00 grant from GEF and USD 95,000,000.00 of co-financing, including project cost of MEP, which is a total of GEF grant of USD 4,750,000.00 and co-financing fund of USD 47,817,000.00. The closing date of the project is December 31, 2021. 2. Accounting Principle 2.1 The financial statements is prepared in accordance with the Accounting Principle of the Financial Management Guidelines of Projects Financed by GEF (Caiguohe [2017]33) and Accounting Principle of the World Bank Loan Project (CaiJiZi [2000]13) ftom the Ministry of Finance. 13 .. .. . .... . .. 2.2 Bookkeeping of the project is in conformity with the principle that the grant in the financial report is the grant which has been received by FECO and the expenditure in the financial report is the expenditure which has been disbursed by FECO. The debit/credit double entry bookkeeping system is applied for bookkeeping purpose. Currency unit for accounting is USD. 2.3 Accounting period is the Gregorian calendar, which is from January 1 to December 31. Financial Statement for the current accounting period is from the effectiveness date which is September 29, 2016 to December 31, 2017. 2.4 The exchange rate defined in the Project Appraisal Document (PAD) (USD l=RMB 6.40 yuan) is used as the reporting exchange rate in the Summary of Sources and Uses of Funds when calculating the total project cost (life of PAD), the ending exchange rate used is the exchange rate as of December 29, 2017 (USD 1=RMB 6.5342 yuan) in other financial statements if mentioned. 3. Scope of the Consolidated Statements 3.1 The Special Account Statement was prepared by FECO. 3.2 Consolidation scope of the financial statement covers the financial statements of FECO and Chengde PMO and special account statements. FECO is responsible for preparing its own financial statements and summarizing financial statements of two project implementation entities and special account statements. Each entity has the responsibility for the authenticity and integrity of its own financial statements. 4. Notes to the Statement of Special Account The Special Account of the project was managed by FECO and set up in China Minsheng Banking Corporation, Beijing Finance Street Branch on July 13,2016. The account number is 697933122, currency unit is USD. The first withdrawal (namely turn-over fund) was USD 350,000.00. The opening balance was USD 0.00, the amount deposited by the WB was USD 390,628.08, total interest income was USD 23.16, total amount withdrawn from the Special Account was USD 40,633,08, interest expense was USD 0.00 and the closing balance as of December 31, 2017 14 was USD 350,018.16. 5. Notes to the Financial Statement Accounts 5.1 Project Expenditure As of December 31, 2017, the current project expenditure is RMB 268,567.63 yuan, and the accumulated project expenditure is RMB 268,567.63 yuan. The details are as following: the current payout for Mainstreaming of Innovative Approach on Integrated Water and Environment Management is RMB 0.00 yuan, and the accumulated payout is RMB 0.00 yuan; the current payout for Demonstration in Hai Basin on the Integrated Water and Environment Management Approach is RMB 0.00 yuan, and the accumulated payout is RMB 0.00 yuan; the current payout for Scaling up the Integrated Water and Environment Management Approach in Three River Basins is RMB 0.00 yuan, and the accumulated payout is RMB 0.00 yuan; the current payout for Institutional Capacity Building and Project Management is RMB 268,567.63 yuan, and the accumulated payout is 268,567.63 yuan. 5.2 Cash and Bank The balance of Cash and Bank account is RMB 2,287,088.66 yuan as of December 31, 2017, which is the ending balance of Special Account is USD 350,018.16, equivalent to RMB 2,287,088.66 yuan. 5.3 Grant As of December 31, 2017, the accumulated grant received is USD 390,628.08, equivalent to RMB 2,552,442.00 yuan. 5.4 The closing balance of Payables is RMB 3,214.29 yuan, which includes that the prepaid cost incurred by FECO is RMB 451.00 yuan, the exchange rate loss is RJMB 2,611.96 yuan and the interest income of the DA is RMB 151.33 yuan. 6. Other Explanation for the Financial Statements The co-financing fund in this financial statement reflects the cash co-financing fund only. 15