JJN 20Oi Chongqing Municipal Bureau of the People's Republie of China Audit Report 4ik$ [ 2017]ý 60 -ý CHONGQINGAUDITREPORT C2017] NO.60 Project Name: Chongqing Small Towns Water Environment Management Project Financed by the World Bank Å k 9~: 8456-CN Loan No.: 8456-CN Project Entity: Chongqing Development and Refonn Conmnission 2016 Accounting Year: 2016 Contents ...........t.............. I.......................1. I. Auditor's Opinion.......................................3 c -ZRA P4 R ........................................ 6 IT. Financial Statements and Notes to the Financial Statements ............6 .......................................I.....6 i. Balance Sheet ....................................6 ............................................ ii. Summary of Sources and Uses of Funds by Project Subcomponent ...8 ( -= Vtt11k, fftr*f ................................. 10 iii. Statement of Implementation of Loan Agreement...............10 ( ) t,600K p A .....................................11 iv. Designated Account Statement... ...................11 ( a 44ft R,.............................................. 13 v. Notes to the Financial Statements .....................16 III.Audi Fi andRa....................................19 111. Audit Findings and Recommendations ..........................23 一、审计师意见 审计师意见 重庆市发展和改革委员会： 我们审计了世界银行贷款重庆市小城镇水环境综合治理项目 2016年12月31日的资金平衡表及截至该日同年度的项目进度表、 贷款协定执行情况表和指定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15页）o （一）项目执行单位及重庆市财政局对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表及贷款协定执行 情况表是你委的责任，簖制指定账户报表是重庆市财政局的责任， 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，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 1 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，公允反映了重庆市小 城镇水环境综合治理项目2016年12月31日的财务状况及截至该日 同年度的财务收支、项目执行和指定账户收支情况。 （四）其他事项 我们还审查了本期内报送给世界银行的cPM001号至cPM005 号提款申请书及所附资料。我们认为，上述资料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。 腐褥〔 燮卜依甲耳们产间 2川冲今西月塔门 地址：中国重庆市渝北区龙溪街道金山路8号 邮政簖码：401 147 电话：86一023一67523216 传真：86一023一675 18962 2 1. Auditor's Opinion Auditor's Opinion To Chongqing Development and Reform Comrnission We have audited the special purpose financial statements (from page 6 to page 15) of Chongqing Small Towns Water Environment Management Project Financed by the World Bank, which comprise the Balance Sheet as of Deceinber 31, 2016, the Suimnary of Sources and Uses of Funds by Project Component, the Statement of Iniplementation of Loan Agreement and the Designated Account Statement for the year then ended, and Notes to the Financial Statements. Project Entity and Chongqing Finance Bureau's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Su=ary of Sources and Uses of Funds by Proj cot Component and the Statement of Implementation of Loan Agreement is the responsibility of your commission, while the preparation of the Designated Account Statement is the responsibility of Chongqing Finance Bureau, which includes: i. Preparing and fair presenting the accoinpanyinc., financial statements in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement; ii. Designing, irriplementing and maintaining necessary internal control to ensure that the financial statements are free from material misstatement, whether due to fi-aud 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 fi-ee 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 entities'preparation and fair presentation of the financial stateinents in order to design audit procedures that are 3 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 Chongqing Small Towns Water Environment Management Project Financed by the World Bank, as of December 31, 2016, 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 applications from No.CPM001 to No.CPMOO5 and the attached documents submitted to the World Bank during the period. In our opinion, these documents comply with the project's 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. Chongqing Municipal Audit Bureau of the People's Republic of China June 26, 2017 4 Address: No.8 Jinshan Road, Longxi Street, Yubei District, Chongqing, P.R. China Postcode: 401147 Tel.: 86-23-67523216 Fax: 86-23-67518962 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 5 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2016t-12f] 31 El (As of December 31,2016) Statement I Project Name: Chongqing Small Towns Water Environment Management Project Currency Unit:RMB Yuan Application of Fund Line No. Beginning Balance Ending Balance -' 1Vf)l t.td Total Project Expenditures 1 85,357,317.71 128,355,620.61 1, 4E4{l i P?Fixed Assets Transferred 2 2, $40AWtl H LU Construction Expenditures to be Disposed 0 3, LU J2A Investments Transferred-out 4 4, (EMIThtConstruction in Progress 5 85,357,317.71 128,355,620.61 z. tS MN 5RInvestments Loan Receivable 6 L : jk * f|Vt-8 A Including; World Bank Investments Loan Receivable 3. ff W)f EREM Appropriation of Investments 8 Loan It: Ti 4 t1V}J Including:Appropriation of World Bank Investments Loan "E 29N Equipment 10 A 1 Including: Equipment Losses 11 in Suspense RE lml-fili-I-Total Cash and Bank 12 34,537,568.88 84,210,855.40 1, QRT43 Cash in Bank 13 34,505,736.81 84,190,297.56 ;±: tfflilltP#R Including:Special Account 14 - 27,716,856.27 2, I!%1 Cash on Hand 15 31,832.07 20,557.84 A jT)1ti442 [jl lv-Total Prepaid and Receivable 16 54,929,331.90 82,612,007.22 At: S tI RfU#X M' Including: World Bank Loan 17 Interest Receivable S1k1tTR7RiEM World Bank Loan Commitment 18 Fee Receivable Reiatlt iffli World Bank Loan Service-Fee 19 Receivable -t R11fijEk-Marketable Securities 20 A, MEj ki"A-4iH-Total Fixed Assets 21 If Etf RJTh#Fixed Assets,Cost 22 iTZ RfitlflHLess:Accumulated Depreciation 23 A&4iFixed Assets ,Net 24 r1ffli2 IP EFixed Assets Pending Disposal 25 WM [12 PiAFixed Assets Losses in Suspense 26 Ak~ffJitTotal Application of Fund 27 174,824,218.49 295,178,483.23 6 I6VLn* (90) BALANCE SHEET 2016 12) 31 H (As of December 31,2016) Statement I Project Name:Chongqing Small Towns Water Environment Management Project Currency Unit:RMB Yuan Sources of Fund Line No. Beginning Balance Ending Balance )! H MX"itTotal Project Appropriation Funds 1 134,870,000.00 151,810,000.00 TM S-.ili 31114 H i*t't RProject Capital and Capital 2 Surplus -t: IMMHIncluding:Grants 3 E- 4 If4itTotal Project Loan 4 7,526,594.12 109,258,590.25 1 49 R Total Project Investments Loan 5 1,623,400,00 103,728,960.25 (1) M ) , Foreign Loan 6 1,623,400.00 43,356,250.00 41 m B;F4iRW# Including:IDA 7 M TT,IU9E4L TitBRD 8 1,623,400.00 43,356,250.00 iIRTechnical Cooperation 9 4I Co-Financing 10 (2) M Fs{%kRDomestic Loan 11 - 60,372,710.25 2, 44lM&Other Loan 12 5,903,194.12 5,529,630.00 11 10 ARMRRAppropriation of Investment Loan 13 A43: TAiVtIZncluding:World Bank Loan 14 TL, i 10k4#i% Bond Fund 15 - A. 4449 Hi Construction Expenditures to be Offset 16 -t )15E tiTotal Payable 17 32,427,624.37 34,107,528.23 Ar: fa-4Rif 4R .Including: World Bank Loan Interest Payable 4t 444 World Bank Loan Commitment 19 Fee Payable $Nti' 4 ffJ World Bank Loan Service-Fee 20 Payable Al -A4 R,(5:itOtlier Payable 21 fL, 14A5tAppropriation of Fund 22 -FlIkARetained Earning 23 - 2,364.75 44)E tTotal Sources of Fund 24 174,824,218.49 295,178,483.23 7 C co - I n C t I n - C, C, I cd D3 w 5 -5tC CS c c5 c,l t- o t V, ol J- c - - ~ Z.. 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Designated Account Statement ti? /Z t P a --k 4E DESIGNATED ACCOUNT STATEMENT - M-97: LN8456 - eA y7 World Bank Lo an No. LN845 6 Advance to Special Account:USS 12131/2016 ff P fT: h * ik r I A )- ff I - k 0, Fiscal Year; 12/31/2016 Depository Bank:Chongqing Branch,China Alk*lk: !Z, WAX Everbright Bank Prepared by: Cliongqing Finance Bureau 39411498000037562 Proj cot Name: Chongqing Small ToN ms Water Environment Management Project Currency: USD Part a: Activity for the Period Item Amount 4E V] M Begimiing Balance Add: 1. 6,000,000-00 Total Amount Deposited by World Bank- (1) Civilwork (2) Equipment (3) 9-41RXO[ Consulting& Training - (5) fl]) PRKP Designated Account 2. 340.89 Total Interest Earned this Period iA Deduct: 1. *4E V-J 2,004,830.40 Total Arimunt Withdrawri (1) -+-P Civil Nwork (2) ia* Equipment (3) WfUX'1,H11 Consulting & Training 2.qMtMJL Interest Earnings transfi-erred-out 3. 12 -TRRIT 10 qy Total Amount Recovered by World B ank 4.-T9t 03V,L Other BanUng Charges Ending Balance 3,995,510.49 )k44W kqX* LC (The notes is an integral part of the financial statements) DESIGNATED ACCOUNT STATEMENT (continued) Prepared by: Chongqing Finance Bureau Project Name: Chongqing Small Towns Water Environment Management Project Currency: USD Financed by the World Bank PART B-Account Reconciliation - 1.##it t 96,000,000.00 Amount Advanced by the World Bank #> Deduct: Total Amount Recovered by World Bank 3. k4t)kP - AI 6,000,000.00 Outstanding Amount Advanced to the Designated Account at the End of this Period 4 _ _4 _m A_# tF 3,995,510.49 Ending Balance of Designated Account at 12/31/2016 # fi Add 5.#I2016412M31El 2 i Mt1 Amount Claimed but not yet Credited at the End of this Period Application No. 6A .2016*12A310 M# 4ki t 2,004,830.40 Amount Withdrawn but not yet Claimed on December 31,2016 Cumulative Service Charges(If not Included in item 5 or 6) ): frDeduct 8AJ.9 ' (4tA l KPtil ) 340.89 Interest Earned (If Included in Designated Account) 9.* A4$ t;iWP 7t fl,# V 6,000,000.00 Total Advance to the Designated Account Accounted for at the End of this Period jM 'T# (The notes is an integral part of the financial statements) 12 （五）财务报表附注 财务报表附注 1．项目简介 世界银行贷款重庆市小城镇水环境综合治理项目于2015年3月 5日签订贷款协定、项目协议。项目总投资约13亿元人民币，其中 世行贷款1亿粎元。项目共涉及4个区县，具体内容为：1，荣昌区獭 溪河（昌州一万灵段）防洪及水环境治理项目；2．憧南区大佛坝河段水 环境保护及防洪护岸综合治理工程；3．石柱县龙河城区堤防及水环境 综合整治项目；4．彭水县靛水新城鸟江滨江段防洪护岸综合治理工 程。 2．项目进度概况 2.1憧南项目 工程CPI、CPZ两个标段监理于2016年9月26日下达开工令， 截至2016年12月31日，工程已完成总工程量的13％。 2,2石柱项目 工程共划分五个土建合同，已完成一标段及四标段的施工协议签 订，即将开工建设；五标段正处于评标过程中；三标段按世行认可的 设计方案深化设计图纸，于2017年6月份可发布招标公告。 2.3荣昌项目 cPI标段于20巧年3月开工，主体工程于2016年3月完工，已 完成分部工程验收、合同工程完工验收、竣工技术预验收及相关专项 验收工作；叩2、cP4标段已于2016年6月28日签订施工合同并全面 施工，正有序推进；CP3标段于2016年12月23日挂网招标，力争 2017年4月开工；CP3一1标段计划于2017年2月挂网招标，2017年 6月开工建设。 2.4彭水项目 项目尚未开始施工。 3．主要会计政策 项目财务管理按世行项目有关规定设置账户，做到专款专用。 3.1以2016年1月l日至2016年12月31日为会计年度。 ]3 3.2以“权责发生制’，为记账原则，采用借贷复式记账法记账。 3+3以2016年12月31日的决算汇率（l美元＝6.937元人民币） 核算外汇损益。 3.4以人民币为记账本位币。 3.5按照财政部发布的《世界银行贷款项目会计核算办法》进行 会计核算。 4．报表主要项目解释 4,1项目支出 截至本年度末，项目累计支出128,355,620.61元，其中：荣昌项 目43,084,311.38元；幢南项目52,026,824.59元；石柱项目 26,813,320.39元；彭水项目6,431,164.25元。 4.2拨付所属投资借款 期末余额O元。 4.3器材 期末余额O元。 4.4货币资金 期末余额：84,210,855,40元，其中：指定账户存款3,995,510,49 粎元（折合人民币27,716,856,27元）。 4.5预付款及应收款 期末余额82,612刀0722元，主要为：1．憧南项目预付工程款 9,209,311.28元，其他应收款7,494,430.84元；2．荣昌项目预付征地 拆迁补偼费用及工程款65,875,265.10元；3，石柱项目应收款33,000 元。 4.6应付款 期末余额34,107,528,23元，主要是项目应付工程款项及质保金 等。 4.7其他应交款 期末余额O元。 4.8留成收入 期末余额2,364.75元。 4.9世行贷款 截至本年度末，累计佼用世行贷款6,250,000美元，为贷款总额 的6.25％。其中指定账户累计向世行提取贷款6,000,000美元，折合 l4 人民币41,622,000元，先征费250,000美元，折合人民币l,734,250 元。 4.10配套资金 截至本年度末，配套资金累计到位217,712,340.25元，完成项目 总计划35.88％。其中：无偼配套资金151,810,000元，有偿配套资金 65,902,340.25元。 本年度配套资金计划数109,821,900元，实际到位76,939,146.13 元，完成计划数的70,%％。 4.11指定账户 根据本项目贷款协议的要求，重庆市财政局于20巧年为本项目 在中国光大银行重庆分行营业部开设了指定账户，该账户由重庆市财 政局管理，账号为：3941 1488000037562。2016年，该账户向世行提 款6,000,000粎元，利息收入340.89美元，发生支付2,004,830.40美 元，手续费支出。粎元，期末余额3,995,5 10.49美元（折合人民币 27,7 16,856.27元）。 l5 v.Notes to Financial Statements Notes to Financial Statements 1. Project Overview The Loan Agreement and Project Agreement of Chongqing Small Towns Water Environment Management Project was signed on March 5, 2015. The total investment is about RMBI.3 billion yuan, including USDIOO million of the World Bank loan. The project covers 2 counties and 2 districts, and the main activities include: 1. Flood and Wastewater Management Project of Laixihe in Rongchang District (the section from Changzhou to Wanling); INVater Enviromnent Protection and Flood Management Project of Dafoba area in Tongnan District; 3. Flood and Wastewater Management Project of Longhe area in Shizhu County-, 4.Flood and Wastewater Management of Wujlalig River in Pengshui County. 2.Progress of the Project 2.1 Tonglian Project Section CPI and CP2 started in September 26, 2016, By the end of December 3 1 2016, completed quantities accounted for 13% of the total. 2.2 Shizhu Project Shizhu Project involves 5 civil works contracts, among which the contracts of Section I and 4 were signed and the construction was going to begin, Section 5 was in the process of bidding evaluation, and Section 3 was improving the design drawing according to the design scheme approved by the World Bank, and was going to issue a tender announcenicrit in June, 2017. 2.3 Rongehang Project Section CPI started in March, 2015, and the main part of the project was completed in March, 2016. Acceptance for parts of construction and the completion of contract project was completed, and the pre-acceptance for the completion technology was completed etc. Constiuction contracts of Section CP2 and CP4 were signed on June 28, 2016 and were in full wing now. Section CP3 issued a bid announcement on internet on December 23, 2016, and was going to start in April, 2017. Section CP3-1 was going to issue a tender announcen'lent on internet in February 2017 and start in June, 2017. 2.4 Pengshul Project 16 The construction didn't begin. 3. Accounting Policies A Designated Account is set for the financial management of the project in accordance with relevant provisions of the World Bank to ensure the capital can be used for specified purpose only. 3.1 The fiscal year of this report was from January, 2016 to December 31, 2016. 3.2 The accrual basis and the debit/credit double entry bookkeeping method are adopted. 3.3 The exchange rate adopted to calculate exchange gains and losses was the exchange rate on December 31, 2016, which is USD1= RMB 6.937 yuan. 3.4 RMB is used as the recording currency of bookkeeping. 3.5 The Financial Statements were prepared according to the requirements of Accounting Methods for the World Bank Financed Project. 4. Explanation of Subjects 4.1 Project expenditures The accumulated project expenditure by the end of this year was RMB128,355,620.61 yuan, including: Rongehang Project RMB 43,084,311.38 yuan, Tongnan Project RMB52,026,824.59 yuan, Shizhu Project RMB26,813,320.39 yuan, Pengshui Project RMB6,431,164.25 yuan. 4.2 Appropriation of Investments Loan The ending balance was RMB 0 yuan. 4.3 Equipment The ending balance was RMB 0 yuan. 4.4 Cash and Bank The ending balance was RMB84,210,855.40 yuan, among which the fund in the Designated Account was USD3,995,510.49 (equivalent to RMB 27,716,856.27 yuan) . 4.5 Prepaid and Receivable 17 The ending balance was RMB82,612,007.22 yuan, mainly including: 1. RMB9,209,311.28 yuan of prepaid project funds and RMB7,494,430.84 yuan of other receivables for Tongnan Project; 2. RMB65,875,265.10 yuan of prepaid land acquisition and house demolition compensation and prepaid project funds for Rongchang Project; 3. Receivable of RMB33,000 for Shizhu Project. 4.6 Payable The ending balance was RMB34,107,528.23 yuan, mainly the payable project funds and the quality guarantee deposit. 4.7 Other Payables The ending balance was RMBO yuan. 4.8 Retained Earnings The ending balance was RMB2,364.75 yuan. 4.9 The World Bank Loan: By the end of the year, the accumulated utilization amount of the World Bank loan was USD6,250,000, accounting for 6.25% of the total loan. Hereinto, the accumulated withdrawal amount of the designated account was USD6,000,000 (quivalent to RMB41,622,000 yuan) ,the front-end fee was USD250,000 (equivalent to RMB1,734,250 yuan). 4.10 Counterpart Funds: By the end of the year, The cumulative counterpart fund in place was RMB217,712,340.25 yuan, accounting for 35.88% of the total plan. Hereinto, the counterpart funds without compensation were RMB151,810,000 yuan, and the counterpart funds with compensation were RMB65,902,340.25 yuan. 4.11 Designated Account: According to the Loan Agreement, the Designated Account was set in Chongqing Branch, China Everbright Bank in 2015, with the account number of 39411488000037562. This account is in the charge of Chongqing Finance Bureau. In 2016, the withdrawal amount from the World Bank was USD6,000,000, the interest earned was USD340.89, the disbursement was USD2,004,830.40,and the service charge was USD 0.Thus, the ending balance was USD3,995,510.49 (equivalent to RMB27,716,856.27 yuan.) 18