30 JUN 2017 P126 S32 Audit Service Center of China National Audit Office for Foreign Loan and Assistance Projects sP4-letA Audit Report $1# rP rxC2017)D 19 -# AUDIT REPORT C2017) NO. 19 Project Name: Municipal Solid Waste Management Project Granted by GEF 00 A#: TF018479 Grant No.: TF018479 Project Entity: Foreign Economic Cooperation Office,Min istry of Environmental Protection 2016 Accounting Year: 2016 目录 ContentS 一、审计师意见．..............................．……，二，,.,．……，二，,.,.,,.．…，,，二，.．…，,．…，．…1 1 .Auditor&5 Opinion，……，.．……，一，．…，，。．…，、．,,．…，,,,,,,．…，,.，…，,.,,,.,,,,.,,,,，二，,.，二3 二、财务报表及财务报表附注．.............................................．……，...．……，.5 11 .Financial Statements and Notes to the Financial Statements......．……，,.5 （一）资金平衡表．.....．……，…，二，…，................................................．……5 1 .Balance Sheet..................．……，.....................................................．……5 （二）项目进度表．.............．……，........．········································一6 11.Summary ofsources and Uses ofFundsbyProjectComponent．…，6 〔三）赠款协定执行情况表，...．……，..．……，,..．……，....．……，……，，二，.．……8 111.Statement oflmplementation ofGrant Agreement...．……，二，·，．…，…，.8 （四）专用账户收支表．．…，................．……，.，…，……，二，,,．…，…，,，二，二，,,.,,.,9 i丫Special Account Statement......................．……，,，二，.,................．……，.,,9 （五）财务报表附注．.．……，.........................................................．……10 v.NotestotheFinancialStatements....．……，.................................．……13 三、审计发现的问题及建议．…，,.,,,.，二，,.，二，.，二，.....．……，．……，．…，…，…，.．……17 nl.Audit Findings and砒commendations.．…，，…，.,．……，,，…，，二，,.......．……。．19  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中国城市生活垃圾综合环境管理项目 20场年12月31日的资金平衡表及截至该日同年度的项目进度表、赠款协 定执行情况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16页）。 （一）项目执行单位及财政部预算评审中心对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表、赠款协定执行情况 表是你单位的责任，簖制专用账户收支表是财政部预算评审中心的责任， 这种责任包括： 上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枯。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。 布 （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、 会计制度和本项目赠款协定的要求簖制，公允反映了全球环境基金赠款中 国城市生活垃圾综合环境管理项目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2号提款申请书。我们认为， 该提款申请书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·一「一｛- 审计籲国夕。贷援款项目＿审臻月、务中心 二·价却，7年“月留日 、二二‘_- 地址：中国北京市丰台区金中都南街17号 邮政簖码：100073 电话：86一10一50992771 1. Auditor's Opinion Auditor's Opinion To Foreign Economic Cooperation Office of Ministry of Envirom-nental Protection We have audited the special purpose financial statements (from Page 5 to Page 16) of the China Municipal Solid Waste Management Project Granted by GEF which comprise the Balance Sheet as of December 31, 201.6, 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 year then ended, and Notes to the Financial Statements. Project Entity and Budget Appraisal and Evaluation Center of Ministry of Finance'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 Grant Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Budget Appraisal and Evaluation Center of Ministry of Finance, 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 3 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 the Municipal Solid Waste Management Project Granted by GEF as of December 31, 2016, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the special account for the year 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.2 submitted to the World Bank during the period. In our opinion, this withdrawal application complies 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 Service Center of China National Audit Office for Foreign Loan and Assistance Projects June 29, 2017 Address: No. 17 Jinzhongdu South Street, Fengtai District, Beijing, P.R.China Postcode: 100073 Tel.: 86-10-50992771 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version 4 II.Fina ncial Statements and Notes to the Financial Statements (-) rt5FT i. Balance Sheet BALANCE SHEET 2016 4 12 A 31 E (As of December 31, 2016) *Htf": T h 4 ±5#{ ..X : TF018479 Name of the Project: Municipal Solid Waste Management Project Granted -by GEF C,Grant No.: TFO018479 GEE M VX * f: -:i-M t 0A * V4t{tkr1 ' VikFl#Vk: A V, i n Entity Name: Foreign Economic Cooperation Office, Ministry of Environmental Gurency Unit: RMB Yuan Protection Application of Fund Line Beginning Ending Sources of Lin Beginning Ending No. Balance Balance Fund e Balance Balance No. 1 i I 7,491,740.90 15,089,130,57 14 821,359.92 1.,602,829.70 Total Project Expenditures Co-funding Received Fixed Assets Transferred 2 0.00 0.00 it 19,480,800.00 28,552,210.36 Total Grant 2. *44Ffi*, lk IA IIt' -.1 Construction Expenditures 3 0.00 0.00 'otal Payable 16 173,563.90 2,230,253.66 to be Disposed 3. 4484 W,. JR tfEY investments 4 0.00 0.00 &i 17 1,710,000.00 0.00 Transferred-out Other Pavable 4. ;6r AsJT_*5 7.491,740.90 15,089,130.57 18 0.00 0.00 Construction in Progress Other Fund 6 0.00 0.00 Retained 19 0.00 0.00 Equipment Earnings Including:Equipment 7 0.00 0.00 Losses in Suspense '1 RfP4-;t a 14,693,982.92 17,296,163.15 Total Cash and Bank C.iaFf 419 17,296,163.15 Cash in Bank 14,693,982.92 10 12,585,039.60 16,988,960.79 Including:Special Account 2. W 11 0.00 0.00 Cash on Hand V9. I AYsO Pqk AktAl'if Total Prepaid and 12 0.00 0.00 Receivable Total Applicntion of 13 22,185,723.82 32,385,293.72 Total Sources 20 22,185,723.82 32,385,293.72 Fund of Fund 5 &!!’斗‘ 「―「苫 、、、―ブー ( V9 ) - A *P qu ;k iv. Special Account Statement -CA * P t 3 A SPECIAL ACCOUNT STATEMENT *JWA3 2016 * 12 ] 31 0 (Forthe period ended December 31,2016) - : mVt: /11--i*-: i-,JA-,A* .", IPN#k-l g:-5till;k ffPiRff-t*: +fXikffitffVJ'k1A er Art I Project Narne: Municipal Solid Waste Management Project Depository Bank., China CITIC Bank Granted by GEF H.O. General Banking, Beijing, China P#- 7: TF018479 W-9-:7111011482600008861 Grant No. . TFOI 8479 ACCOUnt No: 7111011482600008861 A4R*1&: -91 ip * k - X TG Prepared by: Budget Appraisal and Evaluation Centerof Ministry of Currency Unit: USD Finance Item Amount 2016/1 /1 ) 1,939,068.19 Beginning balance(Jan.1, 2016) V(Plus): ]AWI'T-VI'T I-JE(Deposited by World Bank) 1,115,930.57 2,411,t qk./\ (Interest Earnin 10 0.00 )A(Lcss): L*A t 11 (Current Year Withdrawal) 604,963.04 41,, (FECO of MEP) 8S,328M (2) R 14 ji (Yunnan) 184,043.34 (3)js A* (Ningbo) 335,590.80 24Q,A h (interest Disbursement) 0.00 3.41ff -T- P, # (Bank Charge) 0.00 4.* 1' ikff N t(Total Amount Recovered by the World Bank) 0.00 **+V)i(20l6/1?/3l) 2,449,035.72 Ending balance(Dec.31, 2016) 9 （五）财务报表附注 财务报表附注 1．项目基本情况 该项目赠款协议于2014年12月30日由国际复兴开发银行（简 称世界银行）与中华人民共和国财政部〔简称财政部）共同签署。财 政部与环境保护部（简称环保部）于20巧年9月28日签署转赠协议， 由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 责赠款的佼用、管理和监督。环保部对外合作中心与昆明市人民政府 和云南省环境保护厅、宁波市人民政府签署了示范项目实施协议，项 目具体实施机构分别为云南省环境保护对外合作中心（简称云南项目 办）、宁波市环保局固体废物中心（简称宁波项目办）。项目计划资 金总额6292万粎元，其中：赠款资金1200万美元（环保部对外合作 中心278万粎元，云南项目办782万美元、宁波项目办140万美元）, 扼诺配套资金5092万粎元（环保部对外合作中心“4万美元，云南 项目办3128万粎元，宁波项目办1300万美元）。该项目目标为按照 《关于持久性有机污染物（POPS）的斯德哥尔摩公约》要求，运用 现有的BAT/BEP技术，遼免和减少二恶英类和其他污染物的产生和 排放。项目主要内容包括：(1）改善城市生活垃圾焚化厂运行和监 管的能力建设；(2）改进城市生活垃圾管理规划的能力建设；(3) 项目管理与监测结果发布。项目计划于2019年12月31日结束。 2，会计核算原则 2.1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》（财际字口000113号）的要求编制。 2.2本项目采用借贷记账法进行核算。记账本位币为人民币。 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。本期报表会计核算期间为2016年1月1日至2016年12月 31日。 2.4本项目财务报表采用的汇率说明：除项目进度表2一1中“项 目总计划额”采用世行项目评估文件中的汇率即1美元＝人民币6.14 元折算，其余报表采用的期初汇率为2015年12月31日汇率，即1 粎元＝人民币6.4936元，期末汇率为2016年12月31日汇率，即1 粎元二人民币6一9370元。 l0 3．报表编制范围 3.1本项目的专用账户收支表由财政部预算评审中心编制。 3.2本期财务报表簖制范围包括：宁波项目办、云南项目办及环 保部对外合作中心的项目财务报表及财政部预算评审中心的专用账 户收支表。环保部对外合作中心负责对本级、云南项目办、宁波项目 办及财政部预算评审中心专用账户收支表数据进行汇总，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 本项目专用账户由财政部预算评审中心管理，账户设在中信银行 总行营业部，账号71 11011482600008861，币种为美元，首存款（即 周转金）3,000,000.00粎元。本期期初余额l,938,068.19美元，本期 世界银行回补总额1,115,930.57粎元，本期支出604,963.04美元，期末 余额2,449,0 35.72粎元。本账户管理多个项目并分项核算，该账户产 生的利息不在本项目下核算。 5．报表科目说明 5.1项目支出 截至2016年12月31日，本期项目支出人民币7,597,389.67元， 累计项目支出人民币巧，089,130.57元。其中：改善城市生活垃圾焚 化厂运行和监管的能力建设本期项目支出人民币4,018,817.64元，累 计项目支出人民币10,978,745,94元；改善城市生活垃圾管理规划的 能力建设本期项目支出人民币3,070,753,95元，累计项目支出人民币 3,136,825.95元；项目管理与监测结果发布本期项目支出人民币 507,815.08元，累计项目支出人民币973,558.68元。 5.2货币资金 截至2016年12月31日，项目货币资金余额人民币17,296,163.15 元，其中：专用账户存款2,449,035,72美元，折合人民币16,988,960,79 元；云南项目办银行存款人民币101,400.00元；宁波项目办银行存款 人民币205,802.36元。 5.3拨入赠款 截至2016年12月31日，该项目累计收到赠款4,1巧，930.57美 元。折合人民币28,552,210,36元。 11 5,4拨入配套资金 截至2016年12月31日，配套资金本期到位人民币781,469.78 元，累计到位人民币I,602,829.70元。其中：环保部对外合作中心配 套资金本期到位人民币460,000.00元，累计到位人民币460,000,oo元； 宁波项目办本期配套资金人民币一103.32元，为调整上期计入配套资 金的利息收入，累计配套资金人民币287,890.00元；云南项目办本期 配套资金人民币321,573.10元，累计配套资金人民币854,939.70元。 5.5应付款 应付款期末余额人民币2,230,253,66元，包括：环保部对外合作 中心垫付未回补资金人民币55,621.87元；宁波项目办预收质保金人 民币237,1 06.23元；云南项目办垫付未回辛】、资金人民币2,538,618.63 元；汇率变动产生的汇兑损失人民币601,093 .07元。 5,6其他应付款 其他应付款期初余额1,710,000.00元，为环保部对外合作中心暂 借云南项目办和宁波项目办的周转金，2016年度云南项目办、宁波 项目办已将周转金退还，期末余额人民币0.00元。 6．其他情况说明 6.1项目进度表2一1全球环境基金赠款本期数人民币9,071,410.36 元，赠款协定执行情况表中本期提款数人民币7,741,210.36元，两表 之间的差额人民币1,33几200,00元是由于汇率变动产生的差异。 6.2本报表配套资金仅反映现金配套部分。 l2 v. Notes to the Financial Statements Notes to the Financial Statements L Project Overview 1. 1 The Grant Agreement (therefore abbr. GA) of Municipal Solid Waste (MSW) Management Project was signed by the International Bank for Reconstruction and Development (therefore abbr. WB ) with the Ministry of Finance, People's Republic of China (hereinafter abbr. MOF) on December 30, 2014, An implementation agreement was signed between MOF and the Ministry of Environmental Protection (therefore abbr. MEP) to designate Foreign Economic Cooperation Office (therefore abbr. FECO) of MEP to be responsible for the use, management and supervision of the grant on September 28, 2015. Project implementation agreement has been signed between FECO of MEP and Kunming Municipality, Yunnan Department of Enviromnental Protection and Ningbo Municipality, in which it has been defined clearly that the Foreign Economic Cooperation Office of Yunnan Department of Environmental Protection (therefore abbr. Yunnan PMO) and Solid Waste Management Center of Ningbo Bureau of Environmental Protection (therefore abbr. Ningbo PMO) act as the project's implementation agency. The total cost of the project is USD 62,920,000.00 with a grant of USD 12,000,000.00 from GEF and a counterpart fund of USD 50,920,000.00 (the amount of the grant allocated to FECO of MEP, Yunnan PMO and Ningbo PMO is USD 2,780,000.00, USD 7,820,000.00 and USD lA00X0.00 respectively; the amount of counterpart ftmd allocated to FECO of NIEP, Yunnan PMO and Ningbo PMO is USD 6,640,000.00, USD 31,280,000.00 and USD 13,000,000.00 respectively). The objectives of the project are to avoid and reduce the production and emission of dioxins and other pollutants by application of BAT/IE3EP technology according to the Stockholm Convention on Persistent Organic Pollutants (POPs). The main contents of the project include: (1) Building capacity for improved operation and regulation of MSW incinerators; (2) Improved integration of incineration in MSW management; and (3) Project management and results monitoring information dissemination. The agreed closing date of the project is December 31, 2019. 2. Accounting Policies 2.1 The financial statements was prepared in accordance with the Accounting Principle of the World Bank Loan Project (CaUiZi [2000]13) fi-om the Ministry of Finance. 13 2.2 The debit/credit double entry bookkeeping system is applied for bookkeeping purpose. Currency unit for accounting is RMB. 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 January 1, 2016 to December 31, 2016. 2.4 Notes to the exchange rate of current financial statement: The exchange rate provided in the Project Appraisal Document (PAD) (USD 1=RMB 6.14 yuan) is used as the available exchange rate in the Summary of Sources and Uses of Funds by Project Component I when calculating the life of PAD of the project, the exchange rate as of December 31, 2015 which is USD 1=RMB 6.4936 yuan is used as beginning exchange rate and the exchange rate as of December 31, 2016 which is USD 1=RMB 6.9370 yuan is used as ending exchange rate in other financial statements if mentioned. 3. Consolidation Scope of the Financial Statements 3.1 The Statement of the Special Account was prepared by the Budget Appraisal and Evaluation Center of MOF. 3.2 Consolidation scope of the financial statement covers the financial statements of Ningbo PMO, Yunnan PMO, FECO of MEP and the Budget Appraisal and Evaluation Center of MOF. FECO of MEP is responsible for preparing its own financial statements and consolidating the financial statements of FECO of MEP, Yunnan PMO, Ningbo PMO and Special account statement of the Budget Appraisal and Evaluation Center of MOF. Each entity has the responsibility for the authenticity and integrity of its own financial statements. 4. Notes to the Application of Special Account The special account of the project was set up in the CITIC Bank of China by the Budget Appraisal and Evaluation Center of MOE. The account number is 7111011482600008861, and currency unit is USD. The first withdrawal (namely turn-over fund) is USD 3,000,000.00. The beginning balance of the special account is USD 1,938,068.19, the deposited amount for current period by WB is USD 1,115,930.57, disbursement for current period is USD 604,963.04, the ending balance is USD 2,449,035.72 as of December 31, 2016. This account manages multiple projects and accounting by separate projects. The interest incurred by this account is not accounted under this project. 14 5. Notes to the Financial Statement Accounts 5.1 Project Expenditure As of December 31, 2016 the current project expenditure is RMB 7,597,389.67 yuan, the accumulated project expenditure is RMB 15,089,130.57 yuan , among which the current expenditure for building capacity for improved operation and regulation of incinerators is RMB 4,018,817.64 yuan, accumulated project expenditure is RMB 10,978,745.94 yuan; current expenditure for improved integration of incineration in MSW management is RMB 3,070,753.95 yuan, accumulated project expenditure is RMB 3,136,825.95 yuan ;an d current expenditure for project management and results monitoring information dissemination is RMB 507,818.08 yuan, accumulated project expenditure is RMB 973,558.68 yuan. 5.2 Cash and Bank The balance of Cash and Bank account is RMB 17,296,163.15 yuan as of December 31, 2016, including the balance of special account USD 2,449,035.72 which is approximately RMB 16,988,960.79 yuan, balance of Yunnan PMO bank account is RMB 101,400.00 yuan and balance of Ningbo PMO bank account is RMB 205,802.36 yuan. 5.3 Grant As of December 31, 2016, the accumulated grant received is USD 4,115,930.57, approximately RMB 28,552,210.36 yuan. 5.4 Counterpart Fund Counterpart fund received for current period is RMB 781,469.78 yuan, the cumulative counterpart fund received is RMB 1,602,829.70 yuan as of December 31, 2016. Counterpart fund of FECO of MEP for current period is RMB 460,000.00 yuan, cumulative counterpart fund received is RMB 460,000.00 yuan; counterpart fund of Ningbo PMO for current period is RMB -103.32 yuan, which is for adjusting the last period's interest calculated as counterpart fund, cumulative counterpart fund received is RMB 287,890.00 yuan; and counterpart fund of Yunnan PMO for current period is RMB 321,573.10 yuan, cumulative counterpart fund received is RMB 854,939.70 yuan. 5.5 Payables The ending balance of payables is RMB 2,230,253.66 yuan, which includes that the prepaid cost incurred by FECO of MEP is RMB 55,621.87 yuan, prepaid quality guarantee deposit by Ningbo PMO is RMB 237,106.23 yuan, the prepaid cost incurred by Yunnan PMO is 2,538,618.63 yuan, and the exchange rate loss is RMB 601,093.07 yuan. 15 5.6 Other payable The ending balance of the other payable is RMB 1,710,000.00 yuan, which is the turn-over fund received by both Yunnan and Ningbo PMOs from FECO of MEP. Both Yunnan PMO and Ningbo PMO have returned the fund from FECO of MEP in 2016. Ending balance for the other payables is RMB 0.00 yuan as of December 31, 2016. 6. Other Explanation for the Financial Statements 6.1 In the Summary of Sources and Uses of Funds by Project Component I , GEF grant for current period is RMB 9,071,410.36 yuan. In the Statement of Implementation ofGr ant Agreement, current-period withdraws isRMB 7,741,210.36 yuan. The difference of the two statements is RMB 1,330,200.00 yuan which is caused by exchange rate fluctuation. 6.2 The counterpart fund in this report reflects the cash counterpart fund only. 16